GST Latest Notifications: Review of CBIC, GST Extension Notifications
CBIC released various notifications for enforcing the recommendations of the 40th meeting of the GST Council as follows: CBIC notifications signed on 24.06.2020 concerning interest waiver and late fees. The CBIC issued several GST notices on 24 June 2020. There is a summary of those updates here.
- Notification No.49/2020 – Central Tax: Enforcement of some aspects of Finance Act 2020
- Notification No. 50/2020 – Central Tax: Notification of GST rates for the composition of persons taxable under Rule 7 of the CGST Rules
- GSTR-3B-Interest rate waiver: Notification No.51/2020-Central Tax 24.06.2020: Introduction of certain provisions of the Finance Act, 2020.
- Notification No. 52/2020 – Central Tax: GST waiver for taxpayers who did not file GSTR-3B for tax dates between July 2017 and January 2020 shall be informed as previously reported at the 40th GST Council meeting. In CGST Notification No. 52/2020, dated 24 June 2020, the CBIC notified that Zero GSTR-3B could be filed for the above-mentioned duration without a late fee between 1 July 2020 and 30 September 2020. In addition, for the remaining taxpayers, it shall be limited to a maximum of Rs 250 per month's return per act.
An exception for late payments also moved the last GSTR-1 deadlines from March to June 2020 as of June 30th, 2020. The new dates for monthly filing will be from March to June 2020, 10th, 24th, 28th July 2020 and 5th August 2020, without even a late fee payment. The final date for the quarterly GSTR-1 is July 17th and August 3rd 2020 for the quarters January-March 2020 and April-June 2020.
- Big taxpayers were not told of any further extensions for filing GSTR-3B from February to May 2020, including annual turnover in the previous financial year exceeding Rs 5 Crore. Moreover, no interest should have been paid for the first 15 days, respectively, from the respective due dates of February to April 2020, that is, the 20th of the following month. Profit at 9 per cent p.a. after that. Level decreased. Any further delay in GST payments would have been imposed until June 24, 2020.
- Taxpayers with an aggregate annual turnover of up to Rs 5 crore in the last financial year initially have their due date staggered as the 22nd or 24th of their next month, Depending on the state / UT from which the principal place of business is operated. The due date, with the exception of May 2020, staggered as July 12th # or 14th##2020. Apart from that, August 2020 also comes with the due date of yesterday extended to 1st # or 3rd # # October 2020.
- Depending on the annual sales up to Rs 1.5 crore, or between Rs 1.5 crore and Rs 5 crore, the CBIC has abolished the taxpayer bifurcation. Rightly, as per the GST Council's 40th meeting yesterday, the late fee and interest waiver will continue until September 2020
GSTR-1-Late Fees / Penalty Waiver: Notification No.53/2020-Central Tax 24.06.2020: Conditional waiver of late fees for all persons registered with GSTR 1 for months/quarters ending March to June 2020, if submitted by the time specified.
GSTR-3B-Extension of the deadline for Aug 2020: Notification No.54/2020-Centralized tax 24.06.2020: extension to 1/3 October 2020 of the deadline for submission of GSTR 3B
CBIC notice summary is as follows:
New Regulatory relief Provided By Government of India for SMEs business in India:
Business with annual revenue of up to Rs 40 lakhs is now exempt from GST (Rs 20 lakhs was the earlier limit).
Moreover, businesses with turnover up to Rs 1.5 will now opt for the Composition Scheme and pay just 1 percent GST
CBIC Directions for the collection of interest on total cash tax liability under GST- "Administrative guidelines for the receipt of interest on net cash tax liability w.e.f. 01.07.2017" BY
- F. No, no. CBEC-20/01/08/2019—GST, govt. of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Section
Points of Consideration
- At its 39th meeting held on 14 March 2020, the GST Council proposed that interest be paid on net cash tax liability w.e.f. 01.07.2017 and also proposed that section 50 of the CGST Act be amended retrospectively w.e.f. 01.07.2017.
- For the duration 01.07.2017 to 31.08.2020, field positions within your jurisdiction can be ordered to recover interest only on net cash tax liability. • When SCNs have been given on gross tax payable, the same may be kept in the Call Book until the corresponding amendment to section 50 of the CGST Act has been made.