Page 29 - GSTL_11th June 2020_Vol 37_Part 2

REDUCED INTEREST UNDER GST

By
CA Keshav R. Garg, B.Com., FCA, CS, ISA (ICAI),
LL.B.

There has been whole lot of discussions about
how the applicability of reduced rate of interest and
waiver of late fees shall work in case of taxpayers having
turnover exceeding ` 5 crores. The Notification Nos.
31/2020-C.T., 32/2020-C.T. and 33/2020-C.T., dated
3-4-2020 provides for lower interest, waiver of late fees for
GSTR-3B and waiver for late fees of GSTR-1 respectively. There had been various
documents where these notifications has been misinterpreted and industry is
assuming that due dates of filing of returns have been extended. It is not the due
dates of the returns which have been extended rather late fees applicable on them has been
waived off with a condition that if the returns are not filed as per dates specified by the
Government full late fees and interest shall be made applicable. We shall understand
the complete issue by way of practical examples in this article. But before we do
that let us summarise these notifications quickly :

S. Notification No. Relief granted Watch Points
No.
1. 31/2020-C.T., dated (a) Nil rate of interest (a) Rs. 5 crores turnover
3-4-2020 for taxpayers having pertains to aggregate turn-
turnover less than Rs. 5 over of preceding financial
crores year and not current finan-
(b) Reduced rate of in- cial year. This would mean
terest of 9% where the for reduced interest turno-
turnover exceeds Rs. 5 ver of FY 2018-19 shall be
crores for delayed pay- relevant in respect of
ment of tax from the end February & March, 2020
of 15 days from the actu- and for April, 2020 relevant
al due dates turnover shall be for FY
2019-20.

GST LAW TIMES  11th June 2020  29