GST Compliances in light of Covid19

GST Compliances in light of Covid19

In view of the disturbance caused by Novel Corona Virus (Covid 19), the Government announced certain reliefs vide Press Release dt. 24-03-2020 and accordingly issued Notification No. 30/2020 – Central Tax to 36/2020 – Central Tax.

 

In this Article we made an attempt to summarize the reliefs granted to different categories of Tax Payers:

 

Category Relief Granted : Our Remarks
GSTR-1 GSTR-1 for the month of March, April and May can be filed without any late fees up to 30th June 2020.

 

 

: Since no payment is required for filing of GSTR-1, One should try to file GSTR-1 on regular basis. It will help avoiding the pressure in June month.

 

It is also important to note that late fees is only waived if the return is filed up to 30th June 2020. Hence if one fails to file the return by 30th June 2020, then all the late fees would become applicable.

 

GSTR-3B

 

(Feb, Mar & April)

Aggregate Turnover > INR 5 Crores in Preceding Financial Year:

 

·         No Late fees if Return is filed on or before 24th June 2020.

 

·         Interest waiver for first 15 days from the original due date and thereafter concessional interest @9% p.a.

 

 

: Aggregate Turnover is PAN Based (not on GSTIN based).

 

Aggregate Turnover for February & March Month Return would be for FY 2018-19 & for April month it would be for FY 2019-20.

 

There is no extension in Due Dates, it is just waiver in late fees and Interest. If the returns are not filed within extended dates, the late fees and interest would be levied for the entire period.

 

Concessional interest of 9% p.a. would be available only if the return is filed on or before 24th June 2020.

 

GSTR-3B

 

(Feb, Mar & April)

Aggregate Turnover > INR 1.5 Crores but =< INR 5 Crores in Preceding Financial Year:

 

No Late fees & No Interest if Return is filed on or before 29th June 2020/30th June 2020.

 

: Only first due date is mentioned here and Staggered due dates (State wise) are not mentioned here for simplicity. It is advisable to check the actual due date applicable on the subject company.
GSTR-3B

 

(Feb, Mar & April)

Aggregate Turnover =< INR 1.5 Crores in Preceding Financial Year:

 

No Late fees & No Interest if Return is filed on or before 30th June 2020 – 6th July 2020.

 

: Only first due date is mentioned here and Staggered due dates (state wise) are not mentioned here for simplicity. It is advisable to check the actual due date applicable on the subject company.
Input Credit The 10% Restriction Rule on taking of input credit would not be applicable on monthly basis for the month of February 20 to August 20.

 

However the rule would be applicable on cumulatively basis for the period of February 20 to August 20 and if there is any adjustment required, that is required to be made in the GST Return of September 20.

 

 

: Since the Government has given relaxation for filing of GSTR-1 to all, it is possible that many vendors will not file their GSTR-1 and hence one may find a very low input credit in GSTR-2A.

 

Hence one can take the input credit as per the Books of Accounts even though the credit may not be showing in GSTR-2A.

 

It would become difficult exercise to reconcile seven months Input Credit for making the adjustment in September month. Hence it is advisable to keep reconciling the differences on monthly basis and ask the vendors to file GSTR-1.

 

Composition Dealer CMP-02 for opting Composition Scheme for FY 2020-21 can be filed up to 30th June 2020. :
Composition Dealer ITC-03 for reversal of input credit at the time of adoption of composition Scheme for FY 20-21 can be filed up to 31st July 2020 :
Composition Dealer Due date for filing of Quarterly Return CMP-08 for Quarter Ending on March 20 is extended to 7th July 2020. :
Composition Dealer Due Date for filing of Annual Return of Composition Dealer – GSTR-4 for FY 2019-20 is extended to 15th July 2020 :
E-Way Bill Where validity of an e-way bill expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th day of April, 2020.

 

:
Misc. Compliance Where any time limit for completion or compliance of any action, by any authority or by any person, which falls during the period from 20th March, 2020 to 29th June, 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 be extended up to the 30th day of June, 2020, including for the purposes of—

(a) completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by any authority, commission or tribunal etc., under the provisions of the GST Acts; or

(b) filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, under GST Acts.

 

However, such extension of time shall not be applicable for the compliances of the provisions of the said Act, as mentioned below- (a) Chapter IV; (Time & Value of Supply) (b) sub-section (3) of section 10 (Composition

Scheme Turnover extension), sections 25(Procedure for Registration) , 27 (Special provisions relating to casual taxable person and non-resident taxable person.), 31(Tax Invoice), 37(Furnishing of Outward Supplies), 47(Levy of Late Fee), 50(Interest), 69(Power to Arrest), 90(Liability of partners of firm to pay tax), 122(Penalties), 129 (Detention);

(c) section 39, except sub-section (3), (4) and (5) i.e., except GSTR-5, 6 and 7:

(d) section 68 i.e., inspection in so far as e-way bill is concerned; and

(e) rules made under the provisions specified at clause (a) to (d) above;

: The Provisions for generation of invoice at the time of Supply is not deferred. Also the provision for generation of E-Way Bill for movement is also not deferred. Hence the E-Way Bill need to be generated at the time of movement even during the disturbed period.

 

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