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:
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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