COVID – 19 UPDATE RELAXATIONS UNDER INDIRECT TAX LAWS – Eshwars
Call Us +91 44 42048335

COVID – 19 UPDATE RELAXATIONS UNDER INDIRECT TAX LAWS

A. Extension of time for filing GST Returns:

Date for filing GST returns due in the months of March, April and May 2020 have been extended and the same have been permitted to be filed by the last week of June 2020 (Staggering of dates for various states as already in place shall apply – notification in this regard is yet to be given by the Central Board Indirect Taxes and Customs)

Entities having aggregate annual turnover less than Rs. 5 crores can take full benefit of the above relaxation in due date since they will not be charged any interest, late fee or penalty for filing the returns within the extended due date.

Entities having aggregate turnover of Rs. 5 crores are only given a relaxation of about 15 days from the above actual due dates. However, in case of any delay beyond this relaxed 15 days, the interest that will be charged has been reduced to 9% p.a, as opposed to the existing 18% p.a. In addition, they will not be charged any late fee or penalty for filings done till the extended due date.

B. Extension of time to opt for Composition Levy Scheme:

Eligible registered taxpayers who wished to opt for Composition Levy Scheme under GST for the FY 2020-2021 were allowed to do so by making an application in Form GST CMP-02 on the GST common portal on or before the 31st of March 2020. This date has now been extended and the application to opt for Composition levy scheme may be made on or before the 30th of June 2020.

C. Date for payment under Sabka Vishwas Scheme extended:

The Sabka Vishwas Scheme, 2019 was introduced to resolve all disputes relating to the erstwhile Service Tax and Central Excise Acts, which are now subsumed under GST as well as 26 other Indirect Tax Enactments. The due date for this was 15th January 2020, which was later extended to 31st March 2020. Due to the situation now prevailing due to Covid-19, this has now been further extended and taxpayers who wish to avail the benefits under this scheme may do so by 30th June 2020.

Also, no interest will be levied for payments made during this period under this scheme, irrespective of the amount under dispute.

D. Due date of GST annual return for FY 2018-2019 extended:

The time limit for furnishing annual return (Form GSTR 9/GSTR 9A) for the FY 2018-2019 has been extended to 30th June 2020. The notification in this regard by the Central Board Indirect Taxes and Customs can be accessed at http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-15-central-tax-english-2020.pdf

E. Customs clearance shall operate 24×7:

Irrespective of the lockdown, till the 30th of June 2020, Customs clearance shall operate 24×7 with a view to remove difficulties that any importer/exporter may face.

Leave a comment

Your email address will not be published. Required fields are marked *

Eshwars | House Of Corporate & IPR Laws,
Chennai | Delhi | Bengaluru | Mumbai | New Jersey

Board: +91 - 44 - 42048335
+91 - 44 - 42048235