Low GST interest Rate on late filing of FORM GSTR-3B amid COVID19


Concept of Low GST interest Rate on late filing of FORM GSTR-3B amid COVID19

Friends! applicability of Low GST interest Rate on Late filing of Form GSTR-3B amid COVID19 was announced by our respected Finance Minister. Same has been notified by now vide, Notification No. 31/2020 – Central Tax, dated 03.04.2020.

As per the notification, lower rate of interest of Zero for first 15 days after the due date of filing return in FORM GSTR-3B and @ 9% thereafter is will be applicable for taxpayers having aggregate turnover above Rs. 5 Crore.

Zero rate of interest is applicable for taxpayers having aggregate turnover below Rs. 5 Crore in the preceding financial year.

This Relief is applicable for tax periods of February, 2020 to April, 2020.

You May Also Refer: GST Relief announced by the FM in lieu of Covid19 Notified

This lower rate of interest shall be subject to condition that due tax is paid by filing return in FORM GSTR-3B by the date(s) as specified Below:

Low GST interest Rate on late filing of FORM GSTR-3B amid COVID19
Low GST interest Rate on late filing of FORM GSTR-3B amid COVID19

Through this Article we shall discuss this condition with the help of an example.

You May Also Refer: CBIC Notification extending due dates of GST Returns due to COVID-19

Lets calculate interest for delayed filing of return for the month of March, 2020. Due date for the same is 20.04.2020.

Situation  Taxpayer files GSTR-3B on below mentioned dates   No. of days of delay   Whether condition for reduced Interest is fulfilled?   Interest  
1 02.05.2020 11 Yes Zero interest
2 20.05.2020 30 Yes Zero interest for 15 days + interest rate @9% p.a. for 15 days
3 20.06.2020 61 Yes Zero interest for 15 days + interest rate @9% p.a. for 46 days
4 24.06.2020 65 Yes Zero interest for 15 days + interest rate @9% p.a. for 50 days
5 30.06.2020 71 NO Interest rate @18% p.a. for 71 days (i.e. no benefit of reduced interest)

I Hope friends the example was helpful for you to understand the concept.

We have also made a small video on the same. I hope you will like the same.


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