Important Keyword: F. No. CBEC-20/06/08/2019-GST, Notification No. 66/2020 – Central Tax, Section 168A CGST Act 2017, Section 20 IGST 2017, Section 21 UTGST Act 2017, Notification No. 35/2020-Central Tax, Notification No. 65/2020 – Central Tax.
[F. No. CBEC-20/06/08/2019-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 21st September, 2020
Notification No. 66/2020 – Central Tax: Seeks to give one time extension for the time limit provided under Section 31(7) of the CGST Act 2017 till 31.10.2020.
Table of Contents
[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 168A of the Central Goods and Services Tax Act, 2017 (12 of 2017), read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 35/2020-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. 235(E), dated the 3rd April, 2020, namely:-
In the said notification, in the first paragraph, in clause (i), after the first proviso, the following proviso shall be inserted, namely: -
“Provided further that where, any time limit for completion or compliance of any action, by any person, has been specified in, or prescribed or notified under sub-section (7) of section 31 of the said Act in respect of goods being sent or taken out of India on approval for sale or return, which falls during the period from the 20th day of March, 2020 to the 30th day of October, 2020, and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action, shall stand extended up to the 31st day of October, 2020.”.
(Pramod Kumar)
Director,
Government of India
Note: The principal notification No. 35/2020-Central Tax, dated the 3rd April, 2020 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 235(E), dated the 3rd April, 2020 and was last amended by notification No. 65/2020 – Central Tax, dated the 1st September, 2020, published in the Gazette of India, Extraordinary vide number G.S.R. 542(E), dated the 1st September, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 66/2020 – Central Tax
Q1: What is Notification No. 66/2020 – Central Tax about?
Answer:
This notification provides a one-time extension of the time limit under Section 31(7) of the CGST Act, 2017, which deals with goods sent on approval for sale or return basis.
Due to COVID-19-related disruptions, the time limit to issue tax invoices or return such goods was extended till 31st October 2020.
Q2: What does Section 31(7) of the CGST Act specify?
Answer:
Section 31(7) states that when goods are sent or taken out on approval for sale or return, the invoice must be issued:
Before or at the time of supply, or
Six months from the date of removal,
whichever is earlier.
Notification No. 66/2020 extends this time limit due to pandemic-induced delays.
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Q3: What period does the extension cover?
Answer:
The extension applies to any time limit that was due between 20th March 2020 and 30th October 2020.
Taxpayers were given up to 31st October 2020 to complete the required compliance.
Q4: Which notification was amended by Notification No. 66/2020 – Central Tax?
Answer:
It amends Notification No. 35/2020 – Central Tax, dated 3rd April 2020, which initially provided extensions for various GST compliance actions during the COVID-19 lockdown period.
Q5: What specific relief does this notification provide to taxpayers?
Answer:
This notification relieves taxpayers who:
Sent goods on approval between 20th March 2020 and 30th October 2020, and
Could not issue invoices or receive goods back due to lockdown or logistics issues.
They can now complete such actions by 31st October 2020 without violating Section 31(7).
Q6: What is meant by “goods sent on approval for sale or return”?
Answer:
This refers to goods sent to a potential buyer without an immediate sale.
If the buyer approves the goods, an invoice is issued, and the sale is finalized.
If not approved, the goods are returned to the supplier within the prescribed period.
Example:
A jeweler sends ornaments to a retailer for approval. The retailer must return or approve (and buy) the goods within six months.
Q7: Why was the extension necessary?
Answer:
Due to COVID-19 lockdowns, many businesses faced:
Supply chain interruptions,
Delayed approvals from buyers,
Restricted transportation, and
Closure of offices.
To prevent violations and penalties under Section 31(7), the government extended the deadline to 31st October 2020.
Q8: What is Section 168A of the CGST Act, 2017?
Answer:
Section 168A allows the government to extend time limits for various GST compliances through notification in situations like force majeure (e.g., natural disasters or pandemics).
This was the legal basis for the extension granted under Notification No. 66/2020.
Q9: How does this notification impact exporters and suppliers?
Answer:
Exporters and suppliers sending goods on approval basis for export promotion, exhibitions, or sales events received relief.
They were allowed to:
✅ Delay invoicing without penalty.
✅ Maintain compliance without cancellation of GST registration.
Q10: What was the previous time limit before this extension?
Answer:
Normally, under Section 31(7), the time limit is six months from the date of dispatch of goods.
However, due to the pandemic, this was extended up to 31st October 2020 for goods removed between 20th March and 30th October 2020.
Q11: What happens if the goods are not returned or invoiced even after 31st October 2020?
Answer:
If the goods were neither approved (i.e., invoiced) nor returned by 31st October 2020, the transaction is deemed a supply under GST, and tax becomes payable accordingly.
Stay compliant with Finodha GST Return Filing.
Q12: Who signed and authorized this notification?
Answer:
The notification was issued by Shri Pramod Kumar, Director, CBIC, under file number F. No. CBEC-20/06/08/2019-GST.
Q13: How does this connect to earlier extensions under GST?
Answer:
This notification is part of a series of compliance relaxations announced during the COVID-19 pandemic, starting with Notification No. 35/2020 and followed by subsequent amendments (Nos. 55/2020 to 65/2020).
Q14: What benefits does this bring to small businesses and traders?
Answer:
✅ Avoidance of penalties and interest.
✅ More time to regularize transactions.
✅ Relief for sectors like jewellery, textiles, and FMCG, where goods are often sent for approval.
✅ Better working capital management.
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Q15: What should taxpayers do now?
Answer:
Verify whether they had sent goods on approval during the covered period.
Check if corresponding invoices were issued or goods returned before 31st October 2020.
Maintain documentary evidence to avoid future disputes.
💡 Need help with document tracking? Visit Finodha GST Compliance Experts.
🏁 Conclusion
Notification No. 66/2020 – Central Tax provides a much-needed compliance extension for businesses impacted by COVID-19.
It ensures flexibility for taxpayers dealing with goods sent on approval, giving them extra time to invoice or return goods without facing penalties.
💡 Don’t risk non-compliance!
Stay updated and manage your GST responsibilities efficiently with Finodha GST Return Filing Services or consult Finodha GST Experts.
Download PDF: Notification No. 66/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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