GST UPDATE ON IN-DEPTH ANALYSIS OF NOTIFICATION EXTENDING DUE DATE OF FILING RETURN FOR MAY, 2020 68/2020-21

The government is trying its best to provide relaxations to the trade and industry and has lowered the rate of interest on delayed payment of taxes and has extended the due date of filing return for the month of May, 2020 vide Notification No. 36/2020-Central Tax dated 03.04.2020 by way of insertion of provisos. The present update seeks to discuss the manner of amending the notification no. 29/2020-Central Tax dated 23.03.2020 and the issue of interest liability for the month of May, 2020.

The Notification No. 36/2020-Central Tax dated 03.04.2020 has inserted three provisos to provide the due date of filing return GSTR-3B by the assessees for the month of May, 2020. The third proviso, being inserted states that the GSTR-3B shall be furnished electronically on or before 27^th June, 2020 for assessees having aggregate turnover of more than Rs. 5 Crores in the previous financial year. Thereafter, the fourth and fifth proviso prescribes the due date for assessees having aggregate turnover of upto Rs. 5 Crores in the previous financial year on the basis of States as 12^th July, 2020 and 14^th July, 2020. Now, coming to the notification no. 29/2020-Central Tax dated 23.03.2020 prescribing due dates of GSTR-3B for the month of April, 2020 to September, 2020. The said notification stated that GSTR-3B should be filed on or before the 20^th day of the month suceeding such month. The first proviso and second proviso provides due date of filing GSTR-3B for assessees having aggregate turnover upto Rs. 5 Crores in the previous financial year as 22^nd day/24^th day of the month suceeding such month. It is also worth mentioning that the paragraph no. 2 of this notification states that every registered person furnishing GSTR-3B shall make payment of taxes, not later than the last date as specified in the first paragraph on which he is required to furnish the said return.

Now, the question arises is whether the last date of payment of taxes as mentioned in the paragraph no. 2 of the Notification No. 29/2020-Central Tax dated 23.03.2020 also stands modified in light of the amendment made in the due date of filing return for the month of May, 2020 vide Notification No. 36/2020-Central Tax dated 03.04.2020? Well, in order to address this question, it is pertinent to refer to the meaning of paragraph vis a vis proviso in the notification.

As per the dictionary meaning of paragraph, it is a distinct section of a piece of writing, usually dealing with a single theme and indicated by a new line, indentation, or numbering. Now, the question arises is that whether provisos inserted can be considered to be part of the first paragraph of the notification no. 29/2020-Central Tax dated 23.03.2020? If we speak of legal language, the sub-sections of a section may contain provisos and while interpreting the particular sub-section, the proviso is also considered as part of the said sub-section. The proviso is indented or started with a new line but the exception it carves is to be applied to the said sub-section. Consequently, going by the numbering distinction, as the paragraph no. 2 is separately demarcated, the provisos of first paragraph would form part of first paragraph and so the last date of payment of taxes for the month of May, 2020 would be the due dates revised vide Notification No. 36/2020-Central Tax dated 03.04.2020.
Therefore, in our opinion, no interest would be payable by the assessee if the taxes are paid by them after 20^thJune, 2020. This interpretation also holds good as when the original notification no. 29/2020-Central Tax dated 23.03.2020 was issued, then also, the assessees having turnover upto Rs. 5 Crores were not liable to pay interest for the period from 20^th day of the suceeding month to the 22^nd or 24^th day of the suceeding month.
The intention of the government to extend the due date of return and payment of taxes for the month of May, 2020 is clear and obvious but the way the amendments are being carried out complicate the interpretation.

This is solely for educational purpose.
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GST UPDATE ON IN-DEPTH ANALYSIS OF NOTIFICATION EXTENDING DUE DATE OF FILING RETURN FOR MAY, 2020 68/2020-21

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