This circular provides clarification on the revised relief measures relating to interest and late fee for GST compliance, as announced by the Government in view of the difficulties faced by taxpayers due to the COVID-19 pandemic. These clarifications modify and supplement the earlier guidance issued in Circular No. 136/06/2020-GST.

The circular explains the manner of calculation of interest for delayed filing of FORM GSTR-3B for different categories of taxpayers. For taxpayers having aggregate turnover above ₹5 crore, interest is payable at nil rate for the first 15 days from the due date, at 9% thereafter up to 24 June 2020, and at 18% for any further delay. For taxpayers having aggregate turnover up to ₹5 crore, nil rate of interest applies up to the dates specified in the relevant notifications, followed by interest at 9% up to 30 September 2020 and 18% thereafter, if delay continues.

It also clarifies the conditional waiver of late fee for delayed filing of FORM GSTR-3B and FORM GSTR-1 for the tax periods from February 2020 to July 2020. The waiver is available only if returns are filed within the extended timelines notified; otherwise, late fee becomes payable from the original due date. The circular aims to ensure uniform implementation of these relief measures across field formations.