Form GSTR 3B – Calculation of interest on delayed filing

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 1. In view of the outbreak of Covid-19, the Government has come up with few Notifications on 24th June 2020, for extending the various due dates for filing GSTR -3B return. CBIC vide Circular No. 141/11/2020- GST dated 24th June 2020 has clarified the manner of calculation of interest for delay in filing of GSTR 3B.

2. In this article, an attempt has been made to further clarify the manner of calculation with the help of illustrations.

3. Illustration No 1: Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY

Mr A has a tax liability of Rs 1, 00,000 every month from Feb 2020 to July 2020 and he will file GSTR 3B on 30th September 2020. The interest payable for delayed filing of GSTR 3B will be calculated in the following manner:-

1aSpecified Date24th June 2020 ( Refer Note 1)
1bDate of filing GSTR 3B30th September 2020
1cTax LiabilityRs 1,00,000
2aTax PeriodFeb 2020Mar 2020April 2020May 2020Jun 2020Jul 2020
2bDue Dates20th Mar 202020th Apr 202020th May 202027th Jun 2020

(Note 3)

20th July 202020th Aug 2020
2cDates till Nil interest payable

( 15 days from due date)

 

4th April 2020

 

5th May 2020

 

4th June 2020

 

NA

 

NA

 

NA

2dNo. of days till Intt @ 9% Payable

(1a- 2c)

81

Apr-26

May-31

Jun-24

50

 

May-26

Jun-24

20

 

 

Jun-20

NANANA
2eInterest amount

(1c*2d*9%/365)

 

1997

 

1233

 

493

 

NA

 

NA

 

NA

2fNo of days for which intt @ 18% is payable .(1a-1b)

(Note 2)

98

Jun-06

Jul-31

Aug-31

Sep-30

98

Jun-06

Jul-31

Aug-31

Sep-30

 

98

Jun-06

Jul-31

Aug-31

Sep-30

95

Jun-03

Jul-31

Aug-31

Sep-30

72

 

Jul-11

Aug-31

Sep-30

41

 

 

Aug-11

Sep-30

2gInterest amount

(1c*2f*18%/365)

483348334833468435512022
3Total Intt

(2e+2g)

683060665326468435512022

3.1 Note 1: The CBIC vide notification No. Notification No. 31/2020- Central Tax, dated 03.04.2020 clarified that a NIL interest for first 15 days after the due date of filing return in FORM GSTR-3B and @ 9% thereafter is notified for those registered persons having aggregate turnover above Rs. 5 Crore for the tax periods of February 2020 to April 2020.

3.2 This lower rate of interest shall be subject to the condition that due tax is paid by filing return in FORM GSTR-3B by the date(s) as specified in the Notification and the specified date – 24th day of June 2020.

4. Note 2 The CBIC vide circular no. 141/11/2020-GST dated 24.06.2020 has amended the earlier clarification. According to the amended circular – after the specified date, the normal rate of interest i.e. 18% per annum shall be charged for any further period of delay in furnishing of the returns.

4.1 Earlier clarification circular no 136 indicated that if the taxpayer fails to file the return by the specified date ie 24.06.2020, interest @ 18% shall be charged from the due date of filing the return.

5. Note 3: CBIC extends due date for furnishing FORM GSTR-3B for supply made in the month of May 2020 vide Notification NO. 36/2020- Central tax. dated 03-04-2020. The extended due date for the registered person having aggregate turnover above Rupees 5 Crore in the previous financial year is 27th June 2020.

6. Illustration 2 – Taxpayers having aggregate turnover up to Rs. 5 crores in preceding FY – (Group A)

1aSpecified Date
1bDate of filing GSTR 3B30th September 2020
1cTax LiabilityRs 1,00,000

–

2aTax PeriodFeb 2020Mar 2020April 2020May 2020Jun 2020Jul 2020
2bDue Dates22 Mar 202022 Apr

2020

22 May 202012 July 2020

(Note 4)

22 July 202022 Aug 2020
2cSpecified dates from interest payable @ 9% (Note 5) 

30 June 2020

 

3 July 2020

 

6 July

2020

 

12 Sep 2020

 

23 Sep 2020

 

27 Sep 2020

2dNo. of days for which Intt @ 9% Payable

(1b- 2c)

92

Jul -31

Aug-31

Sep-30

89

Jul -28

Aug-31

Sep-30

 

86

Jul -25

Aug-31

Sep-30

 

18

 

 

Sep-30

 

7

 

 

Sep-30

 

3

 

 

Sep-30

 

2eInterest amount

(1c*2d*9%/365)

 

2268

 

2195

 

2121

 

443

 

172

 

74

7. Note 4: CBIC extends due date for furnishing FORM GSTR-3B for supply made in the month of May 2020 vide Notification no. 36/2020- Central Tax, dated-03.04.2020. The extended due date for the registered person in State A having aggregate turnover up to Rupees 5 Crore in the previous financial year is 12th July 2020.

7.1 Group A States – Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep.

8 Note 5 The CBIC vide Notification No. 52/2020- Central tax dated-24-06-2020 clarified that Interest for taxpayers with turnover up to 5 crores in the preceding year will be calculated for the delay in filing of GSTR-3B returns as under for the months of Feb 2020 to July 2020

(a) TILL the specified dates at Sl No. 2 of the notification, interest will be NIL

(b) After specified dates till 30-09-2020 interest will be charged @ 9% p.a.

(c ) After 30-09-2020 interest will be charged @ 18% p.a.

9. Illustration 3 – Taxpayers having aggregate turnover up to Rs. 5 crores in preceding FY – (Group B)

1aSpecified Date
1bDate of filing GSTR 3B30th September 2020
1cTax LiabilityRs 1,00,000

–

2aTax PeriodFeb 2020Mar 2020April 2020May 2020Jun 2020Jul 2020
2bDue Dates24 Mar

2020

24 Apr

2020

24May 202014 July 2020

(Note 6)

24 July 202024 Aug 2020
2cDates from interest payable @ 9% (Note 5) 

30 June 2020

 

5 July 2020

 

9 July 2020

 

15 Sep 2020

 

25 Sep 2020

 

29 Sep 2020

2dNo. of days till Intt @ 9% Payable

(1b- 2c)

92

Jul -31

Aug-31

Sep-30

87

Jul -26

Aug-31

Sep-30

83

Jul -26

Aug-31

Sep-30

15

 

 

Sep-30

5

 

 

Sep-30

1

 

 

Sep-30

2eInterest amount

(1c*2d*9%/365)

 

2268

 

2145

 

2047

 

370

 

123

 

25

9.1 Note 6 CBIC extends due date for furnishing FORM GSTR-3B for supply made in the month of May 2020 vide Notification no. 36/2020- Central Tax, dated-03.04.2020. The extended due date for the registered person in State B having aggregate turnover up to Rupees 5 Crore in the previous financial year is 14th July 2020.

9.2 Group B States- Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi.

10. Further, as per vide Notification no. 57/2020- Central Tax, dated-30.06.2020, if the taxpayer who fails to furnish the return for the period of February 2020 to July 2020, but furnishes the said return till 30th September 2020 the late fees will be capped to Rs 500 (i.e Rs 250 CGST and Rs 250 SGST) per return.

10.1 In case the tax payable is nil for the period covered above the late fees shall stand fully waived for those taxpayers.

The Author can be approached at vishaladvtax@gmail.com

Tags: goods and services  tax, GST, GST interset, GST 3B 
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