Seeks to notify special procedure for making payment of 35% as tax liability in first two month

Last updated: 19 November 2020

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This notification introduces a special procedure for certain registered persons who file GST returns quarterly. It allows them to pay 35% of their tax liability in the first or second month of a quarter. This payment can be made by depositing funds into their electronic cash ledger, calculated based on their previous quarter's or last month's tax payments. Certain conditions apply, such as having adequate balance in ledgers or nil tax liability, and having filed previous returns.

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) Notification No. 85/2020Central Tax New Delhi, the 10th November, 2020 G.S.R....(E).In exercise of the powers conferred by section 148 read with sub-section (7) of section 39 of theCentral Goods and

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FAQ :

Registered persons who have opted to furnish a return for every quarter and are notified under the proviso to sub-section (1) of section 39 of the Central Goods and Services Tax Act, 2017 are eligible.

The special procedure allows eligible persons to pay an amount equivalent to 35% of their tax liability in the first or second month of the quarter by depositing it into their electronic cash ledger.

It is calculated as 35% of the tax liability paid in the return for the preceding quarter (if filing quarterly) or the last month of the preceding quarter (if filing monthly).

Yes, no deposit is required for the first month if the electronic cash or credit ledger balance is adequate for the month's liability or if there's nil liability. Similarly, for the second month, no deposit is needed if the cumulative balance covers the liability for both months or if there's nil liability.

Registered persons must have furnished the return for a complete tax period preceding such month to be eligible for this special procedure.

This notification comes into force with effect from the 18th day of January, 2021.