GST Relief Measures Amid COVID-19: Key Highlights of Circular No. 136/06/2020-GST

2025-03-03 06:21:32 02March

02March

GST Relief Measures Amid COVID-19: Key Highlights of Circular No. 136/06/2020-GST

<h4><strong>Introduction</strong></h4><p>The <strong>Ministry of Finance</strong> issued <strong>Circular No. 136/06/2020-GST</strong> on <strong>April 3, 2020</strong>, to provide <strong>relief to taxpayers</strong> affected by the <strong>COVID-19 pandemic</strong>. The circular clarifies various <strong>GST compliance relaxations</strong>, including <strong>extended due dates, interest waivers, late fee waivers, and validity extensions for e-way bills</strong>.</p><hr><h3><strong>Key Highlights</strong></h3><h3><strong>1. Relief for Composition Scheme Taxpayers</strong></h3><ul><li><strong>Extended deadlines</strong>:<ul><li><strong>CMP-08 filing</strong> (Jan-Mar 2020) extended till <strong>July 7, 2020</strong>.</li><li><strong>GSTR-4 filing</strong> (FY 2019-20) extended till <strong>July 15, 2020</strong>.</li><li><strong>CMP-02 intimation for FY 2020-21</strong> allowed till <strong>June 30, 2020</strong>.</li></ul></li></ul><hr><h3><strong>2. GSTR-3B Interest & Late Fee Relief</strong></h3><ul><li><strong>No extension for GSTR-3B due dates</strong>, but relief in <strong>interest and late fee</strong>:<ul><li><strong>For taxpayers with turnover > ₹5 crore</strong>:<ul><li><strong>No interest</strong> for first <strong>15 days</strong> after due date.</li><li><strong>9% interest</strong> per annum after 15 days (instead of 18%).</li></ul></li><li><strong>For taxpayers with turnover ≤ ₹5 crore</strong>:<ul><li><strong>No interest</strong> if returns are filed by the extended dates.</li></ul></li><li><strong>Late fee waived</strong> for delayed filing of <strong>GSTR-3B (Feb-April 2020)</strong> if filed by extended dates.</li></ul></li></ul><hr><h3><strong>3. Late Fee Waiver for GSTR-1</strong></h3><ul><li>Late fee <strong>waived</strong> for <strong>GSTR-1</strong> (Feb, March, April 2020 & Q4 FY 2019-20) <strong>if filed by June 30, 2020</strong>.</li></ul><hr><h3><strong>4. Extension of Compliance Deadlines</strong></h3><ul><li><strong>Any compliance deadline between March 20, 2020, and June 29, 2020, is extended to June 30, 2020</strong>.</li></ul><hr><h3><strong>5. E-Way Bill Validity Extended</strong></h3><ul><li><strong>E-way bills expiring between March 20 and April 15, 2020, are valid until April 30, 2020</strong>.</li></ul><hr><h3><strong>6. Input Tax Credit (ITC) Rule 36(4) Relaxation</strong></h3><ul><li><strong>ITC restrictions under Rule 36(4) (matching with GSTR-2A) are waived for Feb-Aug 2020</strong>.</li><li><strong>Cumulative ITC adjustment to be made in GSTR-3B of September 2020</strong>.</li></ul><hr><h3><strong>7. Relaxations for TDS & TCS Filers</strong></h3><ul><li><strong>TDS (Section 51) & TCS (Section 52) return filings (March-May 2020) extended to June 30, 2020</strong>.<a href="https://cms.plasament.com/storage/nisha/circular-refund-136-6-2020.pdf">circular_refund_136_6_2020</a><br> </li></ul>