prpri GST Return Filing: A Herculean Job for Start-ups GST Return Filing: A Herculean Job for Start-ups During Nationwide Lockdown

Due to the lockdown and COVID-19 effect, work from home is being followed in all companies and businesses. But the new norm of working from home is bringing a few challenges for start-ups and even for bigger corporations too. One of the challenges faced by businesses is that employees who are responsible for filing tax and GST returns and generating e-way bills are unable to access their office systems.

While employee safety is the primary concern for start-ups, they may face troubles managing their compliance. The challenge for beginning-stage start-ups with limited access to financial tech applications is particularly high.

GST Return images

Complicated GST Process – Limited Resources 

The mechanism of filing GST is complicated as it involves consolidating expense bills and transactions from different departments, validating and entering into accounting systems, estimating amount of tax due from sales, and more. And, it usually happens in the last week of the month which makes it difficult for a lot of companies to manage and file their returns under the current situation.

Small businesses that are unable to work from home, and where tax staff is expected to be present at the premises to comply, are likely to suffer. Some workers may be working at the premises for a short period of time for the smooth movement of products and the generation of e-way bills.

There are many startups that help its clients smoothly comply with cloud-based software that can be accessed anytime, anywhere. Once data is added the software can generate reports automatically and perform reconciliations. These are unusual circumstances and we hope the government can look at these concerns.

The financial year is ending and people have to file their annual returns. The working class is still deeply worried about tax return returns, but on this issue, some experts suggest not to be worried.

GST Due Date Extension

1. Registered persons whose aggregate annual turnover less than Rs. 5 crore can file GSTR-3B due in March, April and May 2020 by the last week of June 2020. No interest, late fee, and penalty will be charged.

2. Others can file returns due in March, April, and May 2020 by last week of June 2020 but the same would attract reduced rate of interest @9 % per annum from 15 days after due date (current interest rate is 18 % per annum). No late fee and penalty to be charged, if complied before till 30th June 2020.

3. Date for opting for composition scheme is extended till the last week of June, 2020. Further, the last date for making payments for the quarter ending 31st March, 2020 and filing of return for 2019-20 by the composition dealers will be extended till the last week of June, 2020.

4. Date for filing GST annual returns of FY 18-19, which is due on 31st March, 2020 is extended till the last week of June 2020.

Worried? Don’t be! As home becomes your new office, let us help your business stay GST compliant. HostBooks GST compliance software is cloud-based that enables you to manage GST billing and return filing from the comfort of your home. Our team of 200+ CAs and Accountants is working from different locations to serve you round-the-clock.

Stay Home. Stay Safe. Stay Productive.

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Qualification: Post Graduate
Company: The Market Hut
Location: Gurugram, Haryana, IN
Member Since: 17 Jan 2019 | Total Posts: 9
CEO and Co-founder of HostBooks Limited. Empowering teams for entrepreneurial ventures and enhancing customer interactions with a professional experience of over 29 years. View Full Profile

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July 2021