Notification No. 30/2020 dated 03.04.2020
Considering the effects of Covid-19, GST department has issued various notification on of which is Notification No. 30/2020 dated 03.04.2020. The notification deals with extension of due date for person who is opting for composition scheme and manner of utilisation of Input GST Credit. The details of notification are as under: –
Extension of date for filing GST CMP-02 & ITC-03
GST CMP-02 & ITC-03 is to be filled by a person who wants to opt for Composition scheme from Normal Provision of GST. The due date of CMP-02 and ITC-03 has been extended and the details of the same are as under: –
|Particulars||Extended due date||Old due dates|
|CMP-02||30th day of June 2020||Before the end of Financial year i.e. last date is 31.03.2019|
|GST ITC-03||31st day of July 2020||With 60 days from the commencement of the year i.e. 30th May 2020|
Exemption in full filing the condition of Input Tax Credit
Due to the COVID-19 Pandemic government has granted relief in fulfilling condition of Rule 36(4) of CGST Rule. As per Rule 36(4) which was inserted through notification no. 49/2019
“(4) Input tax credit to be availed by a registered person in respect of invoices or debit notes,
- the details of which have not been uploaded by the suppliers under sub-section (1) of section 37 (In simple terms it means that credit not reflected in GSTR-2A)
- shall not exceed 10 per cent (20% rate was applicable for the period 9th October to 31st December but with effect from January 1, 2020 10% rate is applicable) of the eligible credit availablein respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37.”
Meaning of “eligible credit” : –
Means = Total input tax credit – input and input services intended to be used “exclusively” for non-business purposes – input and input services intended to be used “exclusively” for making exempted supplies – block credit (Sec. 17(5)).
In the said rules, in sub-rule (4) of rule 36, the following proviso has been inserted as under: –
“Provided that the said condition shall apply cumulatively for the period February, March, April, May, June, July and August, 2020 and the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above.”
Therefore, the credit reflected in GSTR-3B can be taken will making the payment for the month of February to August 2020. Then Rule 36(4) shall be applicable for the period of September and the cumulative calculation is required to be done for all the Period starting from February to September 2020.
Let us understand the same with the help of Example
XYZ Ltd has Cumulative Eligible Credit: –
- As per GSTR 3B for Feb – August 2020: – 12,00,000.
- As per GSTR 2A for the month of Feb 2020 to August: – 10,00,000
- From Feb to August 2020 the credit in GSTR-3B is Rs 12,00,000 and the same has been availed and utilised for the purpose of payment of GST Liability.
Calculation of eligible credit for the period of April – August 2020: –
|Sr. No.||Condition of Rule||Amount|
|1.||The details of Invoices not uploaded by the suppliers i.e. credit not reflected in GSTR-2A)||2,00,000(12,00,000-10,00,000)|
|2.||Eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers||10,00,000|
|3||10 per cent (eligible credit available )||1,00,000|
|4||Input Tax Credit||11,00,000|
|5.||Total Credit utilised for the period Apr-Aug 2020||12,00,000|
|6.||Credit to be reversed in the month of September||1,00,000|
Now in XYZ Ltd. the details for the September month are as under: –
- Output GST for September month: – 3,00,000
- Input GST as per GSTR-3B for September month: – 2,00,000
- Input GST as per GSTR-2A for September month: – 1,70,000
|Sr. No.||Condition of Rule||Amount|
|1.||Output GST Tax||3,00,000|
|2.||Eligible credit (1,70,000 + 10% of 1,70,000)||1,87,000|
|4.||Reversal of Input tax credit||1,00,000|
|5.||Total Liability for the month of September||2,13,000|
Full credit of ITC may be availed on IGST paid on Import of Goods or Services, ITC on inwards supplies liable to RCM (subject to the conditions of eligibility of ITC) and credit received from ISD as the same don’t come under the purview of section 37(1) of CGST Act, 2017.