Important Keyword: Notification No. 31/2020 – Central Tax, GST interest rate reduction, GSTR-3B interest waiver, Section 50(1), GST COVID relief, GST interest 9%, GST interest Nil, GST notifications 2020, Finodha GST filing, GST compliance India
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[F. No. CBEC-20/06/04/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 3rd April, 2020
Notification No. 31/2020 – Central Tax: Seeks to Provide R by Conditional Lowering of Interest Rate for Tax Periods of February, 2020 to April, 2020.
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R.....(E).—In exercise of the powers conferred by sub-section (1) of section 50 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), read with section 148 of the said Act, the Central Government, on the recommendations of the Council, hereby makes the following amendment in notification of the Government of India in the Ministry of Finance (Department of Revenue), No.13/2017 – Central Tax, dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 661(E), dated the 28th June, 2017, namely:–
In the said notification, in the first paragraph, the following provisos shall be inserted, namely: –
“Provided that, the rate of interest per annum shall be as specified in column (3) of the Table given below, for the class of registered persons, mentioned in the corresponding entry in column (2) of the said Table, who are required to furnish the returns in FORM GSTR-3B, but fail to furnish the said return along with payment of tax for the months mentioned in the corresponding entry in column (4) of the said Table by the due date, but furnish the said return according to the condition mentioned in the corresponding entry in column (5) of the said Table, namely:--
Table
| S. No. (1) | Class of registered persons (2) | Rate of interest (3) | Tax period (4) | Condition (5) |
| Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year. | Nil for first 15 days from the due date, and 9 percent thereafter | February 2020, March 2020, April 2020 | If return in FORM GSTR-3B is furnished on or before the 24th day of June 2020 | |
| 2 | Taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees five crores in the preceding financial year | Nil | February, 2020, March, 2020 | If return in FORM GSTR-3B is furnished on or before the 29th day of June 2020 |
| April, 2020 | If return in FORM GSTR-3B is furnished on or before the 30th day of June 2020 | |||
| 3. | Taxpayers having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year | Nil | February, 2020 | If return in FORM GSTR-3B is furnished on or before the 30th day of June 2020 |
| March, 2020 | If return in FORM GSTR-3B is furnished on or before the 3rd day of July 2020 | |||
| April, 2020 | If return in FORM GSTR-3B is furnished on or before the 6th day of July 2020.”. |
2. This notification shall be deemed to have come into force with effect from the 20th day of March 2020.
(Pramod Kumar)
Director,
Government of India
Note: The principal notification number 13/2017 – Central Tax, dated the 28th June 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.661(E), dated the 28th June, 2017.
📚 Frequently Asked Questions (FAQs): Notification No. 31/2020 – Central Tax
Q1: What is Notification No. 31/2020 – Central Tax?
Answer:
It is a GST notification that lowers the interest rate for late filing of GSTR-3B for the months February, March, and April 2020.
Interest was made:
Nil for a specific number of days
9% thereafter (instead of 18%)
This relief was provided under Section 50(1) of the CGST Act, using Section 148 to prescribe special procedures.
Need help with filing GSTR-3B today?
👉 https://finodha.in/gst-return-filing/
Q2: Which tax periods are covered under Notification No. 31/2020 – Central Tax?
Answer:
The relief applies to:
February 2020
March 2020
April 2020
Provided the taxpayer files the return within the extended timelines specified.
Q3: What are the interest rates under this notification?
Answer:
Based on turnover:
1️⃣ Turnover > ₹5 crore
Nil interest for first 15 days
9% interest after that
Only for Feb, Mar, Apr 2020
File by 24 June 2020
2️⃣ Turnover ₹1.5 – 5 crore
Nil interest for Feb, Mar, Apr 2020
File by: Feb/Mar → 29 June
April → 30 June
3️⃣ Turnover up to ₹1.5 crore
Nil interest for Feb–Apr, if filed by: Feb → 30 June
Mar → 3 July
Apr → 6 July
Q4: What is the legal basis of interest reduction?
Answer:
The relief is granted under:
Section 50(1) → prescribes interest for delayed tax payment
Section 148 → government can prescribe special procedures
Notification No. 31/2020 modifies Notification 13/2017 – CT, inserting new provisos with conditional interest rates.
Q5: Is late fee also waived under this notification?
Answer:
❌ No.
This notification deals only with interest.
Late fee waiver was provided separately under:
Notification No. 32/2020 – Central Tax (GSTR-3B)
Notification No. 33/2020 – Central Tax (GSTR-1)
Stay compliant with:
👉 https://finodha.in/gst-compliance/
Q6: Real-life example: How much interest relief did a business get?
Answer:
A wholesaler in Delhi with turnover ₹6 crore filed Feb 2020 GSTR-3B 20 days late.
Under Notification 31/2020:
First 15 days → 0% interest
Remaining 5 days → 9% interest
Compared to normal 18% interest, this effectively halved the liability.
Q7: What happens if someone files after the extended due date?
Answer:
If the taxpayer misses the relief deadline, interest becomes applicable at the full 18% per Section 50(1) from the original due date.
Example:
Turnover > ₹5 crore, filed after 24 June 2020 → Full 18% interest applies.
Q8: Does the notification apply to NIL returns?
Answer:
Yes, the interest rate relief applies to all taxpayers, including NIL filers.
However, NIL filers typically do not have tax liability → so interest is ₹0 anyway.
Q9: Can the taxpayer claim interest refund if GSTN wrongly charged interest?
Answer:
Yes.
If GST portal auto-calculated interest incorrectly, taxpayers could request:
Filing a grievance on GST portal
Claiming adjustment in future period
Need expert assistance?
👉 “Consult a Finodha GST Expert today!”
Q10: Is the interest relief automatic?
Answer:
Yes ✔️
GST portal automatically applied Nil/9% interest based on filing date and turnover.
Taxpayers did not need to apply separately.
Q11: How do turnover slabs affect interest rate?
Answer:
Turnover determines:
Number of interest-free days
Whether interest becomes Nil or 9%
Filing deadlines
This classification uses preceding financial year turnover, as per CGST Act Section 2(6) definition.
Q12: Is this notification relevant today (2024–25)?
Answer:
Yes, for:
GST audits (FY 2019–20)
Annual returns (GSTR-9)
Departmental assessments
Replying to SCNs
For audit and notice support:
👉 https://finodha.in/gst-compliance/
Q13: What if tax was paid on time, but return was filed late?
Answer:
If tax was paid before the due date, interest may not apply for the delayed period because interest is on delayed tax payment, not delayed filing.
Many taxpayers used this strategy during COVID.
Q14: Does this notification apply to composition taxpayers?
Answer:
No.
Composition taxpayers file CMP-08, not GSTR-3B.
So they are outside the scope of this notification.
For new composition registration:
👉 https://finodha.in/online-gst-registration/
Q15: Can a taxpayer use DRC-03 to pay interest later as per relief?
Answer:
Yes.
Taxpayers who mistakenly paid higher interest (18%) could:
Pay correct interest under relief window
Adjust excess via DRC-03 or claim refund
Q16: What is the connection between Notification 13/2017 and 31/2020?
Answer:
Notification 13/2017 originally fixed the 18% interest rate.
Notification 31/2020 inserted new provisos to temporarily reduce the rate for Feb–Apr 2020.
⭐ Conclusion
Notification No. 31/2020 – Central Tax was one of the most important COVID-19 relief notifications, reducing GST interest rates for Feb–Apr 2020 and helping taxpayers stay compliant during lockdown.
If you need:
✔ GST return filing
✔ Interest calculation support
✔ Notice handling
✔ Compliance guidance
👉 Start with Finodha GST Return Filing Today
https://finodha.in/gst-return-filing/
Download PDF: Notification No. 31/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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