Key Measures taken by Govt to ease GST compliances due to Covid-19 Lockdown

The lockdown imposed due to COVID-19 pandemic has impacted business activities across the Country. To ease the burden of GST compliances, numerous measure have been taken by govt. during the lockdown. These are as follows:

1. Newly Prescribed Due Dates for GST Returns

The govt. has specified new dates for filing of various returns in GST. The new dates have been prescribed to grant relaxation from levy of late fee and interest for the given period.

For more details check the article- New due dates for compliances in Indirect Tax Laws [2020] 116 taxmann.com 55(Article)

2. Relaxation from Late Fee & Interest

In case, returns are filed within the new prescribed due dates then, no late fee shall be charged.

No interest will be levied on taxpayers having turnover of upto Rs. 5 crore if the returns are furnished within new prescribed dates. For taxpayers having turnover of more than Rs. 5 crore, no interest for the first 15 days and reduced rate of interest @ 9% p.a., if the return is filed after 15 days from the original due date but within the revised new prescribed due date. If the returns are filed after the new prescribed due dates, then interest at the rate of 18% p.a. shall be applicable.

3. Annual Return

The time limit for furnishing of the annual return (GSTR-9/9A) and reconciliation statement (GSTR-9C) for the financial year 2018-2019 has been further extended to September 30, 2020.

Also Read: Income Tax Reliefs Given by Government Due to Covid-19

4. Composition Scheme

Furnishing details of payment of self-assessed tax in Form GST CMP-08 for the quarter ending 31st March, 2020 extended to 7th July, 2020. Also, due date of furnishing the return in Form GSTR-4 for the financial year ending 31st March, 2020, has been extended to the 15th July, 2020.

5. Validity of e-way bill

In view of the hardship created on account of lockdown, the CBIC has extended the validity of those e-way bills which were generated on or before March 24, 2020 and whose validity has expired between March 20, 2020 and April 15, 2020 till May 31, 2020.

6. Relaxation under Rule 36(4)

The restrictions under rule 36(4) of the CGST Rules will not apply to input tax credit availed by the registered persons in the returns in Form GSTR-3B for the months of February, March, April, May, June, July and August, 2020. However, the provision will apply cumulatively for these months for the tax period of September, 2020.

7. Other Due Dates Extended

The due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between March 20, 2020 to June 29, 2020 has been extended till June 30, 2020.

8. LUT for zero-rated supplies

The time limit for filing of Letter of Undertaking (LUT) for F.Y. 2020-21 has been extended to June 30, 2020 and the taxpayer can continue to make the supply without payment of tax under LUT provided that the Form GST RFD-11 for F.Y. 2020-21 is furnished on or before June 30, 2020. Taxpayers will be required to quote the reference number of the LUT for F.Y. 2019-20 in the relevant documents.

Also Read: Understanding the GST Practitioner Exam Pattern/Procedure for Year 2020

9. Extension of GSTR-7

The circular has also clarified that as the due date for furnishing of return in Form GSTR-7 along with deposit of tax deducted has been extended to June 30, 2020, no interest under section 50 will be levied if tax deducted is deposited by that date.

10. Refund Application

The due date for filing an application for refund falling during the period March 20, 2020 to June 29, 2020 will be extended till June 30, 2020

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11. Issues related to IBC

Interim Resolution Professional/Resolution Professional (IRP/RP) can obtain GST registration within thirty days of the appointment of the IRP/RP or by June 30, 2020, whichever is later.

The IRP/RP will not be required to take a fresh registration in those cases where statements in Form GSTR-1 under section 37 and returns in Form GSTR-3B under section 39 of the CGST Act, for all the tax periods prior to the appointment of IRP/RP, have been furnished under the registration of the corporate debtor. Cases where RP is not the IRP or there is a change of RP mid-way, the registration by IRP/RP is required only once. In case of any change in IRP/RP after initial appointment under IBC, it would be deemed to be a change of the authorized signatory.

12. Merchant Exporter

The CBIC has clarified that the requirement of exporting goods by a merchant exporter within 90 days from the date of issue of tax invoice by a registered supplier will get extended to June 30, 2020, provided the completion of such 90-day period falls within March 20, 2020 to June 29, 2020.

13. Job work

Form ITC-04 in respect of goods dispatched to a job worker or received from a job worker during a quarter is required to be furnished on or before the 25th day of the month succeeding that quarter. The due date of filing of Form ITC-04 for the quarter ending March, 2020 falls on April 25, 2020 which has been extended to June 30, 2020.

14. GSTR-3B through EVC for Companies

A person registered under the provisions of the Companies Act, 2013 shall, during the period from April 21, 2020 to June 30, 2020, will be allowed to furnish return under section 39 in Form GSTR-3B verified through electronic verification code (EVC).