Condition of 10% ITC Deferred & Validity of E-way Bill Extended

E-way bill validity extended:

Presently, the e-way bill is valid for 24 hours for a distance up to 100 km and the same is extended by one day for every another 100 km. However, if the vehicle does not cover 100 km within 24 hours, another bill has to be generated.

Now, to provide the relief to Industry where supplies or goods stuck in transit amid the nationwide lockdown due to COVID-19, the government vide notification 35/2020 dated 03-04-2020, extended the validity of e-way bill till April 30, that were set to expire between March 20 to April 15.

Therefore, where an e-way bill has been generated and its period of validity 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.

Condition of 10% ITC deferred:

Presently, in order to plug evasion, the GST Council in had in December restricted input tax credit to 110% of the eligible amount available in GSTR-2. It was tightened from 120% per cent introduced in October. This restriction is applicable for each month.

Now, the government vide notification No. 30/2020 dated 03-04-2020, deferred the application of 110% restriction for availing input tax credit for the month of February to August, and rolling over the cumulative applicability to the month of September this year. The seven-month window is provided to ease industry’s working capital and cash flow.

Therefore, GSTR-3B for the m/o September 2020 shall be furnished with the cumulative adjustment of Input Tax Credit for the month of February, March, April, June, July and August 2020 according to condition of 10%.

Due date to file GSTR-3B has extended:

The government vide notification No. 32/2020 dated 03-04-2020, has extended the due date to file GSTR-3B for the m/o February, March and April 2020 as follows:

S.No.	Class of Registered Person	Due Date
1.	Aggregate turnover is more than 5 Crores	24th June 2020 all months
2.	Aggregate turnover more than 1.5 Crores but less than 5 Crores	29th June for February and March 30th June for March
3.	Aggregate turnover up to 1.5 Crores	30th June for February 3rd July for March 6th July for April

Late fee for filing GSTR-1 waived off:

The government vide notification No. 33/2020 dated 03-04-2020, has waived off late fee for late filing GSTR-1 for the month of March, April and May 2020 and the quarter ending 31^st March 2020 if the GSTR-1 for the said period furnished on or before 30^th June 2020.

Relaxation for availing composition scheme for FY 2020-21:

Presently, the registered person who are willing to opts to pay tax under composition scheme in the financial year 2020-21 had to file intimation in GST CMP-02 on or before 31^st March 2020.

Now, the government vide notification No. 30/2020 dated 03-04-2020, giving relaxation to the said registered person is allowed to file intimation in GST CMP-02 on or before 30^th June 2020.

Due date extended to pay tax under composing scheme:

The government vide notification No. 34/2020 dated 03-04-2020 extended date of payment of self-assessment tax, for the person opted who has opted composing scheme for the financial year 2019-20, in Form GST CMP -08 for the quarter ending 31^st March 2020, till the 7^th day of July 2020.

Further, the date of furnishing return in GSTR – 4 for the financial year ending 31^st March 2020, till the 15^th of July 2020.

Interest on late payment of tax has waived off:

The government vide notification No. 31/2020 dated 03-04-2020, waived off the interest levied on late payment of tax who are liable to file GSTR-3B as follows:

S.No.	Class of Registered Person	Interest	Conditions
1.	Aggregate turnover is more than 5 Crores	Nil for 15 days after due date 0.75% pm after 15 days	If GSTR-3B furnished by 24th June 2020 all months
2.	Aggregate turnover more than 1.5 Crores but less than 5 Crores	Nil	If GSTR-3B furnished by – 29th June for February and March 30th June for March
3.	Aggregate turnover up to 1.5 Crores	Nil	If GSTR-3B furnished by – 30th June for February 3rd July for March 6th July for April

Time limit for completion or compliance has been extended:

Any time limit for completion or compliance of any action by any authority or by any person, which falls during the period from the 20th day of March, 2020 to the 29th day of June, 2020, shall be extended up to the 30^th June 2020 vide notification no. 35/2020 dated 03-04-2020 for the purpose of –

> completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the Acts stated above; or

> filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the Acts stated above

However, such extension of time limit shall not be applicable for the compliance of the provisions of –

1. Registration

2. Conversion from composition scheme to normal scheme upon exhausting threshold limit of aggregate turnover during a financial year;

3. Deemed Registration;

4. Casual Taxable Person;

5. Issuing Tax Invoice;

6. Power to arrest;

7. Liability of partners to pay tax;

8. Penalty for offences;

9. Detention, seizure and release of goods and conveyance in transit;

Let’s analysis the effect in details

To discuss the effects of the above provision in detail specific on your business, you may mail us at somvirkataria@live.in or call or whatapp us on 9911166244