53 GST and Trade Associations, under the banner of the ‘All India Joint Representation Committee for GST’, have come together, to submit a joint representation to the Union Finance Minister, Smt.Nirmala Sitharaman, on various relaxations which are required in GST to ease the suffering of businesses as well as meet the emergent circumstances of lockdown.

ALL INDIA JOINT REPRESENTATION COMMITTEE FOR GST
An alliance of GST and Trade Associations for partnering Government in GST issues resolution
____

Thursday, October 22, 2020

To
The Hon’ble Finance Minister of India
Raj path Marg, E Block,
Central Secretariat, New Delhi,
Delhi-110011

Sub: General Representations in respect of several GST compliances -Regarding

Respected Madam,

We are 53 GST and Trade Associations throughout India, whose list is appended to this representation, writing to you in respect of the various compliances and deadlines in GST law which have become cumbersome due to the COVID pandemic. Earlier last week, 44 GST and Trade Associations have submitted a joint representation, organized by the All India Joint Representation Committee for GST, to the Hon’ble Prime Minister, Shri. Narendra Modi, for extension of due date for submitting GSTR-9 and 9C forms for the year 2018-19.

Due to Pandemic Covid 19, the Government had imposed PAN India Lockdown under the Disaster Management Act from 19th March, 2020 which is still continued.

The Government both State and Central, from time to time, extended deadlines for compliance under almost all acts falling due in the period of lockdown either amending the respective act or by issue of notification.

Considering the need of hour, the Supreme Court has suo moto by its orders clarified and extended dead line for filing appeal or applications under the various act and suspended the period of limitation till further orders. No such order ending this suspension has been passed till date by the Supreme Court.

Due to the extended lockdown the most of the business enterprises and private offices throughout India basis are not working fully, their staff is not attending at full capacity, proper local transport and infrastructure facilities are not available, data compilation as well as availability is not easily possible. So, in the given scenario, in our understanding it won’t be possible for all the stakeholders to meet any kind of deadlines in respect of many GST compliances and at the time even it won’t possible for all the Govt. Officials to complete their deadlines too.

In view of above, we hereby urge you to kindly consider the various deadlines which falls due during the month of September 2020 in the interest of all stakeholders of economy who are contributing for the growth of the economy. We are also listing down few suggestions in respect of various compliances which can aid the businesses in this difficult climate: –

GST Compliances – Financial Year 2019/20 & 2020/21

Due Dates for GST Returns

1. All compliances dues dates for the filing of GSTR 1 and GSTR 3B for monthly as well as quarterly filers of such returns, for the period 1.4.20 to 28.02.2021 may be extended to 31st March 2021 without any kind of Interest and/or Late fees payable by any of the Registered Taxable Persons for which appropriate notification similar to Central Tax Notification No 31/2020 to 33/2020 dated 03.04.2020 amended by conditional Central Tax notifications No 51/2020 to 53/2020 dated 24.06.2020 may be issued by your honour;

2. Also, the time period for making amendments to GSTR-1 pertaining to Financial year 2019-2020 is permissible only during the month of April to September 2020, time limit for monthly returns filers is over and for quarterly filers of returns last due date is 31st October 2020 whereas in case of GSTR-3B it is ending on 20th October, 2020 or 22nd October 2020 or 24th October 2020 (i.e. the return filing due date for GSTR 3B for the month of September 2020) both such dates should be uniformly extended 31st March 2021 for all Registered Taxable persons;

3. Similar due dates extension also may be provided for CMP -08, GSTR 5, GSTR 6, GSTR 7, GSTR 8 and/or ITC 04 etc. for the period 1.4.20 to 28.02.2021 may be extended to 31st March 2021 without any kind of Interest and/or Late fees payable by any of the Registered Taxable Persons for which appropriate notification may be issued by your honour;

4. Lumpsum of levy of Late fees of Rs.500/- per return may also be provided for all stakeholders filing their returns for the period 1.4.2020 to 28.02.2021 as against normal late fee of Rs.20 per day in case of NIL Returns or Rs.50 per day in case of other returns;

5. Filing of all returns by way of way of OTP option in place of DSC authentication may be also extended till 31st March 2021 in respect of all Registered Taxable Persons under the provisions of GST Act 2017 for which appropriate notification may be issued.

Time Limit Relaxation for claim of Input Tax Credits u/s 16 of the CGST Act, 2017

6. Time limit for claim of Input Tax credit u/s 16 of CGST Act, 2017 for the financial year 2019-20 be extended from existing time limit to 31st March 2021 i.e. by the due date of filing of return for September 2020 i.e. 20th October 2020 or 22nd October 2020 or 24th October 2020, by immediate circular/notification followed by the Amendment in CGST Act 2017 by way of Proviso in Finance Bill, 2021 scheduled on February 1,2021 or Removal of Difficulties Order issued under section 172 of the CGST Act, 2017 or under section 168A of CGST Act, 2017 and similar amendment should be notified in GSTR 9 & 9C for the financial year 2019-20 too;

General Clarification for eligibility for the claim of Input Tax Credits u/s  16 of the CGST Act 2017

7. It has been observed that many times suppliers report supply transaction in B2C transactions as against B2B transactions due to size and volume of transactions which they are unable to comply due to paucity of staff or unskilled staff members or pressures of due date compliances, but such suppliers do file their such returns of GSTR 1 & GSTR 3B by paying tax dues even though technically they are incorrect as far as correct reporting and filing of such tax invoices. Consequently, due to incorrect reporting of such information by such suppliers, details of such invoices are not reflected in GSTR 2A of the Recipient of supply. In such cases, if appropriate notification and/or clarification can be issued by yourself to provide that in such kinds of cases if Recipient or Buyer is in possession of appropriate documentary evidences of filing of such returns under the provisions of GST Act, 2017 supported by the certificate issued by Chartered Accountants and/or Cost and Management Accountant, then such recipients are not required to reverse such input tax credits as the same is not reflected in GSTR 2A of such recipients and such documentary evidence and such authenticated certificate would be termed as acceptable documents for issue of GST Refunds u/s 54 of the CGST Act, 2017 . Such clarification would help all the stakeholders and it would be really deemed as Ease of Doing Business in India and it may be clarified that it would be considered w.e.f July 1,2017. We would be grateful if such clarification is issued as soon as possible.

Time Limit Relaxation for Reversal of Input Tax Credits under Rule 37 of the CGST Rules, 2017

8. Time limit for Reversal of Input Tax Credit under Rule 37 read with 2nd proviso to sec 16 of the CGST Act, 2017, due to non-payment of Tax Invoices/Debit Notes or similar documents etc. within 180 days to be extended to 365 days by issuing clarification by way of Circular/Notification followed by Amendment in CGST Act 2017 by way of Proviso in Finance Bill, 2021 scheduled on February 1,2021;

Time Limit Relaxation for claim of Input Tax Credits u/s 18 of the CGST  Act, 2017

9. Time limit for claiming of Input Tax Credit under section 18 may also be extended to 31st March 2021 for any compliances falling within the period commencing from 15.03.2020 to 31.12.2020 by issuing clarification by way of Circular/ Notification followed by Amendment in CGST Act 2017 by way of Proviso in Finance Bill, 2021 scheduled on February 1,2021;

Time Limit for claim of Refund u/s 54 of the CGST Act 2017

10. Time limit for claiming of Refund u/s 54 of the CGST Act, 2017 may also be extended to 31st March 2021 for any cases where the last date to file the claim of refund is falling within the period commencing from 15.03.2020 to 31.12.2020 by issuing clarification by way of Press Circular/Notification or a Removal of Difficulties Order issued u/s 172 followed by Amendment in Explanation 2 of sec 54 of CGST Act 2017 by way of Finance Bill, 2021 scheduled on February 1,2021;

Relaxation of compliances for claim of Input Tax Credit as per Rule 36(4)

11. Relaxation of compliances for claim of Input Tax Credit as per Rule 36(4) was provided by way of a proviso which was inserted in CGST Rules 2017 to provide that the said condition shall 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, but that the said condition shall apply cumulatively for the said period and that the return in FORM GSTR-3B for the tax period of September, 2020 shall be furnished with cumulative adjustment of input tax credit for the said months in accordance with the condition under rule 36(4) be extended up to February 2021 in place of September 2020 and such cumulative adjustment of Input Tax Credit may be provided during the month of March 2021 as against existing month of September 2020 by amending such proviso;

Clarification in respect of GSTR 2B

12. A suitable clarification as a matter of abundant precaution may be issued for the non-applicability of GSTR 2B while processing claims of GST Refunds u/s 54 of CGST Act 2017 as well as for claim of Input Tax Credits u/s 16 of the CGST Act 2017 r/w Rule 36(4) of the CGST Rules 2017 while filing GSTR 3B by any Registered Taxable Persons;

Relaxation of Time Limits for the filing of ITC -04

13. Many Registered Taxable persons are encountering the issues in filing of ITC-04 in respect of Financial Year 2019-20 as well as Financial Year 2020-21, and it would be deemed as appropriate if the dues dates for filing of ITC -04 are extended up to 31.12.2020 for FY 2019-20 & for the period 1.4.2020 to 31.12.2020 it should be extended to March 31,2021 similar to beneficial notifications issued for the earlier reporting periods.

Relaxation of E Way Bills conditions and/or stipulations under Rule 138 of CGST Rules 2017

14. Many states have issued relaxation for generation of E Way Bills within the same state, we recommend if appropriate notification /clarifications can be issued for doing away with requirements of generating of E Way Bills in respect of all Registered Taxable Persons having same PAN Number at each state level as well as Union Territory level as lots of issues are faced for Intra state movement of supply by entities having same PAN Number within the state.

Schema Changes in existing schema of GSTR 3B

15. It was announced in public domain that reporting of negative values of GSTR 3B would be permitted while filing GSTR 3B by all Registered Taxable Persons but same is still not activated on the GSTN portal. Due to this a lot of problem happens in those cases where there are credit notes but no supply in a particular month. Suitable instructions can be issued to GSTN portal implementation agencies so that such beneficial measures can really help all stakeholders of the economy.

Time Limit Relaxation for filing of GSTR 9, 9A & 9C

16. Deadline of filing annual return GSTR 9, GSTR 9A and audit report in Form GSTR 9C on or before 31.10.2020 for the Financial year 2018-19 to be extended to 31.12.2020 & for Financial Year 2019-20 it should be extended to 31st March 2021 for which appropriate notification should be issued as early as possible;

Filing of GSTR 9C using online option as against offline option

17. Filing of Form GSTR 9C also be enabled for using online option as against offline option;

Filing of GSTR 9, GSTR 9A & GSTR 9C by Aadhaar authentication of Authorised Signatory using OTP option

18. Filing of GSTR 9, 9A & GSTR 9C may be allowed to be filing by way of Aadhaar authentication of Authorised Signatory using OTP option in the case of Corporates and LLPs under the provisions of GST Act 2017 for which appropriate notification may be issued.

19. Forms for filing of GSTR 9 & 9C for the financial year 2019-20 should be made available as early as possible with all changes as provided vide Central Tax Notification No 79/2020 dated 15.10.2020 which is not made available to all Tax Payers as of today;

Time Limit Relaxation for realization of Convertible Foreign Exchange u/s 2(5) and 2(6) of the IGST Act, 2017

20. Time Limit for the receipt of Convertible Foreign Exchange in respect of Export of Services u/s 2(6) of IGST Act, 2017 during the period 1.4.2020 to 28.02.2021 be hereby extended up to 30th September 2021 or 270 days from date of export Invoice which is later.

21. Time Limit specified under Rule 96B of CGST Rules 2017 for Recovery of refund of unutilised input tax credit or integrated tax paid on export of goods where export proceeds were not realized within the prescribed time period may suitably be extended till 31.3.2021 for exports made during the Financial Year 2019-20.

Any Other Time Limits Extensions

22. Extension of Time period for filing of GST Appeals under the provisions of GST Act, 2017 to be extended to 31.03.2021 for the due dates falling within the period 1.4.2020 to 28.02.2021;

23. Any other prescribed time limits other than specified above as provided under the provisions of the GST Act 2017 may also be extended to 31st March 2021;

One-time Relief Measures for the period July 2017 to December 2020

24. Considering the rampant conditions prevailing in country due to NOVEL CORONA VIRUS COVID-2019 as well as complete lockdown implemented from March, 2021, in the interest of the nation as well as all stakeholders, we recommend one-time relief measure scheme, for filing of all pending compliances, which was provided by way of Notification No 52/2020 dated 24.06.2020 which provided that the total amount of late fee payable for a tax period, under section 47 of the said Act shall stand waived which is in excess of an amount of two hundred and fifty rupees for the registered person who failed to furnish the return in FORM GSTR-3B for the months of July, 2017 to January, 2020, by the due date but furnishes the said return between the period from 01st day of July, 2020 to 30th day of September, 2020, be extended from existing 30th September 2020 to March 31,2021 for the period July 2017 to December 2020 by issuing appropriate notification and/or clarifications.

25. Such Notifications and/or clarifications should also provide the benefit of free flow of Input Tax Credits in the hands of recipient for the claim of input tax credits under section 16 of CGST Act 2017, as well as extension of Time limit for claiming of GST Refunds u/s 54 of the CGST Act, 2017 for the period July 17 to December 2020 as Govt is not losing tax revenue as all suppliers would be filing their GSTR 3B along with interest as applicable for the above period.

26. Such Notifications and/or clarifications should also provide the benefit of free flow of Input Tax Credits in the hands of recipient for Transitional Credits available pursuant to filing of TRAN -1 & TRAN -2 subject to certain stipulations and conditions as well as specifying exclusions categorically in the interest of all stakeholders (including Sovereign)

27. Relaxation of Time Limits also may also be provided in connections with supplies made/effected u/s 143 (Job Work) of the CGST Act 2017 for the period July 2017 to December 2020;

28. Removal of Difficulty Order No 01/2020 dated 25.06.2020 in respect of Revocation of GST Cancellations which provided that last date eligible would be date of service of the said cancellation order or 31st August 2020 whichever is later and such order should be amended to provide that such last date of 31st August 2020 is extended to 28th February 2021 as a lot of SME businesses are not able to comply with the provisions of law resulting into nonpayment of GST Dues and/or filing of GST Returns on PAN India basis.

29. The cases of all Risky Exporters, where the refunds are stopped by the DGARM unit of CBIC, refunds may be allowed on one-time basis on submission of Bond/undertaking, as deemed fit. So that they can run their businesses in tough times. Also, a policy should be made for resolution of such matters in time bound manner and as early as possible. Currently, there is no grievance redressal mechanism exists for such matters. Refunds are stuck even after submission of reports of the risky exporters by jurisdictional authorities.

In case if request for extension is not possible please kindly issue the notification that even if such returns are filed belated, no fines and penalties would be levied on any Registered Tax Persons on PAN India considering the pandemic situations faced by all the peoples of the country.

We believe this type of uniform and central provision is the need of hour to meet the end of justice and it would not be necessary to issue periodical separate notifications extending the deadline under the various acts.

We are requesting on behalf of all the stakeholders of the country be its Professionals, CAs, CMAs, SME Industries, Big Companies, Associations or any advisors etc.to extend the due date to at least 31st March 2021 in respect of every kind of compliances. Please kindly do the needful as issuing such extension at the last hour often acts as detrimental to the majority of the stakeholders of the country.

Your Prompt action would be highly appreciated by every stakeholder on PAN India basis.

You are requested to kindly consider the same for providing relief to the businesses in meeting this pandemic situation.

The President of the Confederation of GST Professionals and Industries is formally signing this petition on behalf of all the 53 associations, since taking individual signatures from all the representatives of these associations on this petition is not possible. The Confederation is having the necessary letters of support of these associations joining this petition as well as signature campaign.

Thanking you in anticipation.

Sincerely Yours
ON BEHALF OF ALL 53 ASSOCIATIONS
Sd/-
CA Sujata Rangnekar
President
Confederation of GST Professionals
and Industries

Date: 22/10/2020
Place: Mumbai
CC to:

1. The Honourable Chairman,
Office of the GST Council Secretariat
5th Floor, Tower II, Jeevan Bharti Building, Janpath Road,
Connaught Place, New Delhi-110 001
E-mail: contact.gstcouncil@gov.in

2. The Chairman, CBIC,
Govt of India, North Block
New Delhi -110001
E-mail: chmn-cbic@gov.in

3. The Hon’ble Commissioner of State Tax
Maharashtra State, Mazgaon
Mumbai.
E-mail: Cst@mahagst.gov.in

LIST OF JOINT SPONSORS OF THIS PETITION

National Association

(1) Confederation of GST Professionals and Industries

Maharashtra

(2) Western Maharashtra Tax Practitioners Association

(3) Nashik Industries and Manufacturer’s Association

(4) Amaravati Chamber of Commerce and Industry

(5) North Maharashtra Tax Practitioners Association

(6) Tax Consultants Association (Sangli)

(7) Tax Practitioners Association (Yavatmal)

(8) The Tax Practitioners’ Association (Aurangabad)

(9) Goods & Services Tax Bar Association (Nagpur)

(10) The Tax Practitioners’ Association, Nanded

(11) Tax Bar Association (Amravati)

(12) Jalgaon District Tax Practitioners’ Association

(13) Hingoli Tax Practitioners’ Association

(14) Tax Practitioners Association Nashik

(15) Goods and Services Tax Practitioners Association of Sindhudurg

(16) Ratnagiri Tax Practitioners’ Association

(17) Tax Consultant’s Association of Kolhapur

(18) Bhiwandi Tax Practitioner’s Association

(19) Karad Tax Practitioners Association

(20) Tax Practitioners’ Association Thane

(21) Tax Friends Association (Mumbai)

(22) Tax Bar Association (Akola)

(23) Malad Chamber of Tax Consultants (Mumbai)

(24) Vidarbha Tax Practitioner’s Association

(25) Tax Practitioner’s Association Parbhani

(26) The Tax Practitioners Association Latur

Gujarat and Diu

(27) Gujarat Sales Tax Bar Association

(28) All Gujarat Federation of Tax Consultants

(29) Chartered Accountants Association, Ahmedabad

(30) Taxation Consultants’ Group (Ahmedabad)

(31) Tax Advocates Association Gujarat

(32) Bhavnagar Income Tax Bar Association

(33) Baroda Tax Bar Association

(34) The Jamnagar Tax Bar Association

(35) Una Diu Joint Tax Practitioners Association

(36) Girsomnath Tax Bar Association

(37) The Southern Gujarat Income Tax Bar Association, Surat

(38) Income Tax Bar Association, Gujarat

(39) The Bhavnagar Sales Tax Bar Association

Rajasthan

(40) Jaipur Chartered Accountants Group

(41) Tax Consultants’ Association Jaipur

(42) Peer GST (Jaipur)

(43) District Tax Consultants Association, Chittorgarh

(44) Tax Bar Association Bhilwara

(45) Kota Tax Advocates Association

(46) Kota Tax Bar Association

(47) Tax Bar Association Alwar

Tamil Nadu

(48) Tamil Nadu Tax Consultants Association

Telangana

(49) Telangana Tax Practitioner’s Association

Karnataka

(50) Belagavi Chartered Accountants’ Association

North East India

(51) Tax Bar Association, Guwahati

Goa

(52) Goa Chamber of Commerce and Industry

(53) All Goa Tax Practitioners’ Association

***

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2 Comments

  1. Harish P Devda says:

    W.r.t 180 days reversal along with interest – It was discussed in 28th GST council meeting dt. 21st July 2018 in Volume 1 and Press note followed,

    Discussion agenda [Volume 1] It was proposed to remove the liability to pay interest in case where the recipient has been made liable to pay an amount equal to the ITC availed in case he fails to pay to the supplier of goods or services or both the amount towards the value of supply along with tax payable thereon within a period of 180 days from the date of issue of invoice by the supplier and it is believed that liability to pay interest is too onerous and should be removed.

    Proposed for amendments [Press note] In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but the liability to pay interest is being done away with.

    However it was never formed a conclusion in the meeting and ignored parallelly by council – There could be representation to dispose off rule 37 itself

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