The CBIC vide Notification No. 85/2020–Central Tax dated November 10, 2020, has notified the registered persons, notified under proviso to sub-section (1) of Section 39 of the CGST Act, 2017, who have opted to furnish a return for every quarter or part thereof, as the class of persons who may, in first month or second month or both months of the quarter, follow the special procedure such that the said persons may pay the tax due under proviso to sub-section (7) of Section 39 of the CGST Act, 2017 by way of making a deposit of an amount in the electronic cash ledger equivalent to, –
(i) 35% of the tax liability paid by debiting the electronic cash ledger in the return for the preceding quarter where the return is furnished quarterly; or
(ii) The tax liability paid by debiting the electronic cash ledger in the return for the last month of the immediately preceding quarter where the return is furnished monthly:
No amount is required to be deposited:
(a) for the first month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the tax liability for the said month or where there is nil tax liability;
(b) for the second month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the cumulative tax liability for the first and the second month of the quarter or where there is nil tax liability.
Note: Registered person shall not be eligible for this special procedure unless he has furnished the return for a complete tax period (in which the person is registered from the first day of the tax period till the last day of the tax period) preceding such month.
The above notification for the said special procedure shall be effective from January 1, 2021.
The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-85-central-tax-english-2020.pdf