The government is proactive in taking the measures to combat the COVID-19 and the effect of the same can been seen with the measures taken in executing the GST Law with extending the due dates of Filing the GSTR-1 and GSTR-3B Returns without late fee. While relief has been given to Interest also with reduced rate @9% and for which slab w.r.t turnover applies. This can be seen a great move if at all the waiver is given for interest as well the reason being government can not consider the collecting of taxes in commercial way atleast under these circumstances.
The proactive steps include the relief given w.r.t application of Rule 36(4) on the monthly filing of GST returns for the period Feb to August 2020. GST Reconciliations with 2A can be cumulatively done for the months of Feb to August and adjustments can be done while filing the GSTR-3B of Sept 2020. This will definitely help in improving the management of cash flows under the given circumstances.
Another welcoming move is enabling the EVC option while filing the GSTR-3B of the companies instead of DSC Key, which is helpful under the given lock down situation. It would be better if it is extended to for filing GSTR-1 also. Which will be helpful for the companies to file their GSTR-1 and it will be easy for the recipient of supply to reconcile his GSTR-2A and can file the GSTR-3B giving effect to the Rule 36 (4). This can be helpful in two ways one is the last minute rush can avoided for the registered assesses in filing the GST returns around the June 24th 2020 and in the other way it will be helpful for the government to receive the taxes bit early.
The state and central GST departments should take steps in processing refunds under GST with utmost priority so that it will enable the MSME’s to boost with out any immediate aid from the government in the form of packages. Under this scenario the tax professional should get equipped with all the latest amendments and circulars with respect to refunds to grab the opportunity to deal with the given situation.
As the scenario of the businesses post COVID-19 is not the same as before. The tax professional has to be sceptical while considering increase In his remuneration under this given situation post COVID-19. Reason being always the business man will try to match the inflows when compared to his outflows. The increase in compliance may not reap him profits adding to this the crisis because of COVID-19 will hamper them. And as a social responsibility the tax professional should not rise their professional fee for the Current FY 2020-21. If possible we can waive to the small traders which will increase their gratitude towards the tax professionals as well.
Though this PANDEMIC is the toughest period globally, the tax professional can see the positive side of it by using this lock down period in equipping themselves with the latest updates like amendments, circulars, notifications under GST Law, which will be helpful in dealing the clients post COVID-19. Once should think of practising across variety of areas under the tax net like there are few professionals practise in Customs when compared to Income Tax and GST. Also the area of practising under Foreign Trade Policy and International Taxation can be considered as good option for youngsters along with GST.
The made in India, The Vocal for Local by Honourable PM Modi may really boost the business opportunities in India. Also it can be seen from the news during this period that there are high chances that many companies would be coming to India and if at all this happens it can create great opportunities to the tax professionals in employment as well as in practise also.
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