Important Keyword: Notification No. 38/2020 – Central Tax, CBIC GST update 2020, Rule 67A Nil return SMS, EVC-based GSTR-3B filing, Fifth Amendment CGST Rules, Section 39 CGST Act, Electronic Verification Code GST, COVID GST relaxation, Finodha GST compliance services, Online GST return filing India.
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Table of Contents
[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 5th May, 2020
Notification No. 38/2020 – Central Tax: Seeks to make fifth amendment (2020) to CGST Rules.
[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 section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: -
(1). (a) These rules may be called the Central Goods and Services Tax (Fifth Amendment) Rules, 2020.
(b) Save as otherwise provided, they shall come into force on the date of their publication in the Official Gazette.
2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), with effect from the 21st April, 2020, in rule 26 in sub-rule (1), after the proviso, following proviso shall be inserted, namely: -
“Provided further that a registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the 21st day of April, 2020 to the 30th day of June, 2020, also be allowed to furnish the return under section 39 in FORM GSTR- 3B verified through electronic verification code (EVC).”.
3. In the said rules, after rule 67, with effect from a date to be notified later, the following rule shall be inserted, namely: -
“67A. Manner of furnishing of return by short messaging service facility.- Notwithstanding anything contained in this Chapter, for a registered person who is required to furnish a Nil return under section 39 in FORM GSTR-3B for a tax period, any reference to electronic furnishing shall include furnishing of the said return through a short messaging service using the registered mobile number and the said return shall be verified by a registered mobile number based One Time Password facility.
Explanation. - For the purpose of this rule, a Nil return shall mean a return under section 39 for a tax period that has nil or no entry in all the Tables in FORM GSTR-3B.”.
(Pramod Kumar)
Director,
Government of India
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, published vide number G.S.R. 610(E), dated the 19th June, 2017 and last amended vide notification No. 30/2020 - Central Tax, dated the 3rd April, 2020, published vide number G.S.R. 230 (E), dated the 3rd April, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 38/2020 – Central Tax
Q1: What is Notification No. 38/2020 – Central Tax about?
Answer:
It amends the CGST Rules, 2017 through the Fifth Amendment (2020). It allows companies to file GSTR-3B returns using EVC instead of DSC and introduces Rule 67A, which permits Nil GSTR-3B filing via SMS for small taxpayers.
Q2: What legal powers were used to issue this notification?
Answer:
The Central Government exercised powers under Section 164 of the CGST Act, 2017, based on recommendations from the GST Council, to simplify compliance under pandemic conditions.
Q3: What change does it bring for companies registered under the Companies Act, 2013?
Answer:
Between 21st April 2020 and 30th June 2020, companies could file GSTR-3B returns verified via EVC (Electronic Verification Code) rather than requiring a DSC.
This eased challenges for directors and authorized signatories unable to access their DSC devices during lockdown.
Q4: What is an Electronic Verification Code (EVC)?
Answer:
EVC is an OTP (One-Time Password) sent to the registered mobile number or email ID of the authorized signatory. It serves as a digital authentication method for filing GST returns without a physical DSC token.
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Q5: What is Rule 67A, introduced under this notification?
Answer:
Rule 67A allows taxpayers to file Nil GSTR-3B returns through SMS.
This means if you have no sales, no purchases, and no tax liability, you can file your return easily using your registered mobile number — verified via an OTP (One Time Password).
Q6: Who can use the SMS-based Nil return facility?
Answer:
Any taxpayer who:
Has no entries in any table of GSTR-3B for a particular tax period, and
Is required to file under Section 39 of the CGST Act, 2017.
💡 This facility was especially useful for small taxpayers and startups with zero business activity during lockdown.
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Q7: How can a taxpayer file a Nil GSTR-3B via SMS?
Answer:
1️⃣ Use your registered mobile number linked to the GST portal.
2️⃣ Send a text message in the specified format to the designated GST number.
3️⃣ Verify the return with the OTP sent to your phone.
4️⃣ Receive an SMS confirmation once the return is successfully filed.
Q8: What is the benefit of allowing EVC for companies?
Answer:
💼 Enables remote filing during lockdowns or travel restrictions.
🧾 Removes dependency on DSC hardware tokens.
⚡ Faster and more accessible for authorized signatories.
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Q9: What is the effective period for the EVC filing option?
Answer:
Companies could use EVC instead of DSC from 21st April 2020 to 30th June 2020, as per the inserted proviso under Rule 26(1) of the CGST Rules, 2017.
Q10: What does “Nil return” mean in Rule 67A?
Answer:
As per the Explanation to Rule 67A, a Nil return means a GSTR-3B return for a tax period with no outward supply, no inward supply, and no tax liability in any table of the form.
Q11: Which sections of the CGST Act are referenced here?
Answer:
Section 39 – Filing of returns by registered taxpayers.
Section 164 – Empowerment of the government to make rules.
Rule 26(1) – Method of return verification.
Rule 67A – (Newly inserted) Filing of Nil returns via SMS.
Q12: How does this notification simplify compliance for businesses?
Answer:
✅ Allows digital verification without physical DSCs.
✅ Simplifies filing for zero-transaction entities.
✅ Saves time and portal load during lockdown.
✅ Boosts MSME participation by lowering compliance complexity.
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Q13: Who signed this notification and what was its legal reference?
Answer:
It was signed by Shri Pramod Kumar, Director, CBIC, under File No. CBEC-20/06/04/2020-GST and published in the Gazette of India, Extraordinary (Part II, Section 3, Sub-section i).
Q14: What is the background of these amendments?
Answer:
With the pandemic halting normal business operations, this step was taken to:
Reduce dependency on physical DSCs, and
Facilitate easy, contact-free tax compliance.
It continued CBIC’s digital transformation under the Digital India initiative.
Q15: How can Finodha help taxpayers comply with these changes?
Answer:
Finodha provides:
✅ Online GST Return Filing (Click Here)
✅ Business Setup & GST Registration (Click Here)
✅ ROC & Private Limited Compliance (Click Here)
✅ MSME / Udyam Registration (Click Here)
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🏁 Conclusion
Notification No. 38/2020 – Central Tax was a crucial digital milestone in India’s GST framework. By allowing EVC-based GSTR-3B filing for companies and introducing SMS-based Nil return filing, CBIC made GST compliance faster, contactless, and inclusive during the lockdown era.
💡 Pro Tip:
Don’t wait for the deadline—file your GST returns early and keep your business fully compliant. Start today with Finodha GST Return Filing Services.
Download PDF: Notification No. 38/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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