Important Keyword: Notification No. 51/2020 – Central Tax, Notification No.13/2017 – Central Tax, F. No. CBEC-20/06/09/2019-GST, Section 148 CGST Act 2017, Section 50(1) CGST Act 2017, Notification No. 51/2020 – Central Tax.
Words: 1636; Read time: 9 minutes.
Table of Contents
[F. No. CBEC-20/06/09/2019-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 24th June, 2020
Notification No. 51/2020 – Central Tax: Seeks to provide relief by lowering of interest rate for a prescribed time for tax periods from February, 2020 to July, 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) read with section 148 of the said Act, the Central Government, on the recommendations of the Council, hereby makes the following further 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, for the first proviso, the following proviso shall be substituted, namely : –
“Provided that the rate of interest per annum shall be as specified in column (3) of the Table given below for the period mentioned therein, 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, namely:--
Table
| S. No. (1) | Class of registered persons (2) | Rate of interest (3) | Tax period (4) |
| 1. | 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 per cent thereafter till 24th day of June, 2020 | February, 2020, March 2020, April, 2020 |
| 2. | Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year, whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep | Nil till the 30th day of June, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | February, 2020 |
| Nil till the 3rd day of July, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | March, 2020 | ||
| Nil till the 6th day of July, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | April, 2020 | ||
| Nil till the 12th day of September, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | May, 2020 | ||
| Nil till the 23rd day of September, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | June, 2020 | ||
| Nil till the 27th day of September, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | July, 2020 |
| 3. | Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi | Nil till the 30th day of June, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | February, 2020 |
| Nil till the 5th day of July, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | March, 2020 | ||
| Nil till the 9th day of July, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | April, 2020 | ||
| Nil till the 15th day of September, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | May, 2020 | ||
| Nil till the 25th day of September, 2020, and 9 per cent thereafter till the 30th day of September, 2020 Nil till the 29th day of September, 2020, and 9 per cent thereafter till the 30th day of September, 2020 | June, 2020 July, 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 and was last amended vide notification number 31/2020 – Central Tax, dated the 3rd April, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.231(E), dated the 3rd April, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 51/2020 – Central Tax
Q1: What is Notification No. 51/2020 – Central Tax about?
Answer:
This notification provides reduced interest rates for delayed GST return (GSTR-3B) filings for February to July 2020, due to COVID-19.
Interest is either waived (Nil) or reduced to 9% for a specified period, instead of the usual 18% under Section 50(1) of the CGST Act.
Q2: Which sections of the CGST Act empower this relief?
Answer:
It is issued under:
Section 50(1): Prescribes interest on delayed payment of GST.
Section 148: Allows the government to notify special procedures or relaxations for specific classes of taxpayers.
📘 Need help calculating interest on GST returns? Visit Finodha GST Compliance Services.
Q3: What is the main benefit of this notification?
Answer:
✅ Nil interest for the initial days post the due date.
✅ Reduced interest rate (9%) thereafter until 30th September 2020.
✅ Applicable to both large taxpayers (turnover > ₹5 crore) and small taxpayers (≤ ₹5 crore).
Q4: What is the usual interest rate for delayed GST payment?
Answer:
Normally, 18% interest is charged under Section 50(1) of the CGST Act for delays in paying GST after the due date.
This notification temporarily lowers it to 9% (or 0%) for specific months to support businesses during COVID-19.
Q5: Who is eligible for this reduced interest benefit?
Answer:
All registered persons filing GSTR-3B for Feb–July 2020, including:
Taxpayers with turnover above ₹5 crore, and
Taxpayers with turnover up to ₹5 crore (segregated by states/UTs).
📘 Simplify your GSTR-3B filing process with Finodha GST Return Filing.
Q6: Which states are covered under the two turnover-based categories?
Answer:
Category 2 – Western/Southern States: Maharashtra, Gujarat, Karnataka, Tamil Nadu, Kerala, Telangana, Goa, Andhra Pradesh, Chhattisgarh, Madhya Pradesh, etc.
Category 3 – Northern/Eastern States: Delhi, Punjab, Haryana, UP, Bihar, West Bengal, Assam, Rajasthan, Odisha, Himachal Pradesh, etc.
Q7: How does this notification help businesses practically?
Answer:
✅ Provides breathing space during the lockdown.
✅ Reduces financial strain by lowering interest liability.
✅ Encourages taxpayers to file pending GSTR-3B without heavy penalties.
💡 Example:
If a business with ₹4 crore turnover delayed its April 2020 GSTR-3B filing till 10th September 2020, no interest is charged for that period.
Q8: Does the benefit apply automatically?
Answer:
Yes ✅.
The GST portal automatically calculates the reduced interest rate based on filing dates and taxpayer category.
Q9: What happens if a taxpayer delays beyond the extended date?
Answer:
Once the deadline for nil/9% interest lapses, the standard 18% interest applies from the original due date.
📘 Avoid penalties — Consult Finodha GST Experts today.
Q10: Is this notification linked to any previous one?
Answer:
Yes.
It amends Notification No. 13/2017 – Central Tax and is part of the COVID-19 relief package announced in June 2020 alongside Notifications 52/2020 and 57/2020.
Q11: Does this apply to composition taxpayers?
Answer:
No 🚫.
Composition taxpayers file GSTR-4, not GSTR-3B.
This relief applies only to regular taxpayers.
Q12: Can interest paid earlier at 18% be refunded?
Answer:
No automatic refund is provided.
However, taxpayers can claim adjustment in future filings or seek clarification from the jurisdictional GST officer.
Q13: Who issued and signed this notification?
Answer:
It was issued by the Ministry of Finance, Department of Revenue (CBIC) and signed by Shri Pramod Kumar, Director, Government of India, under File No. CBEC-20/06/09/2019-GST.
🏁 Conclusion
Notification No. 51/2020 – Central Tax played a crucial role in supporting Indian businesses during the COVID-19 crisis by reducing GST interest rates for delayed GSTR-3B filings.
It reflects the government’s flexible approach to ensuring compliance while easing taxpayer stress.
💡 Pro Tip: Keep your GST filings stress-free with Finodha GST Return Filing and stay compliant with Finodha GST Compliance Services.
Download PDF: Notification No. 51/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
