GST RELIEF MEASURES PROVIDED BY THE GOVERNMENT IN VIEW OF COVID-19 OUTBREAK- Whether Sufficient relief provided

As we know that due to Corona virus outbreak in the whole world, the world economy has been paralysed including India. Hence, to mitigate the losses to the business in our country, our Finance Minister has taken several measures. I would like to give light on the reliefs provided in the GST matter which has been explained herein under.

Reliefs to Composition Taxpayers

Sl. No. Types of forms Basis of filing Due Date Extended Due Date Changes brought under Notification No. and date
1 Form CMP-02 Option to pay tax under composition scheme Within 31st March of the succeeding financial year i.e. for F.Y. 2020-2021, due date was 31.03.2020 upto 30th June 2020 30/2020-Central Tax dated 03.04.2020
2 Form ITC-03 Taxpayers opts to pay under Composite Scheme and ITC held in stock to be reversed Upto 31st July 2020 30/2020-Central Tax dated 03.04.2020
3 Form CMP-08 Quarterly Statement 18.04.2020 07.07.2020 34/2020-Central Tax dated 03.04.2020
4 Form GSTR-4 Annual statement (April 2019-March 2020) 30.04.2020 15.07.2020 34/2020-Central Tax dated 03.04.2020

However, there is no extension of any time limit in case of section 10(3), when the option of paying tax under composition scheme by the taxpayer shall lapse if the aggregate turnover during the financial year exceeds the limit of Rs. 1.50 Crore / Rs. 75 lakhs (Special Category states) in the preceding financial year as specified under section 10(1).

2. Reliefs to Normal Taxpayers (Taxpayers paying tax other than under composition scheme)

a) In case of filing of GSTR-3B: [February to April 2020]

Sl. No Condition of filing Month for which return to be filed Due Date Date of filing Interest Rate Waiver of Late Fees
1 Aggregate Turnover > 5 Crores in preceding F.Y. February 2020 20.03.2020 Upto 04.04.2020 NIL NIL
From 05.04.2020 to 24.06.2020 9% (Reduced Interest applicable from 05.04.2020) NIL
After 24.06.2020 18% (Interest from 21.03.2020) Rs. 20/50 per day till the return filing date
March 2020 20.04.2020 Upto 05.05.2020 NIL NIL
Between 06.05.2020 to 24.06.2020 9% (Reduced Interest applicable from 06.05.2020) NIL
After 24.06.2020 18% (Interest from 21.04.2020) Rs. 20/50 per day till the return filing date
April 2020 20.05.2020 Upto 04.06.2020 NIL NIL
Between 05.06.2020 to 24.06.2020 9% (Reduced Interest applicable from 05.06.2020) NIL
After 24.06.2020 18% (Interest from 21.05.2020) Rs. 20/50 per day till the return filing date
2 1.50 crores < Aggregate Turnover <5 Crores February 2020 20.03.2020 Upto 29.06.2020 NIL NIL
After 29.06.2020 18% (Interest from 21.03.2020) Rs. 20 / Rs. 50 per day till return filing date
March 2020 20.04.2020 Upto 29.06.2020 NIL NIL
After 29.06.2020 18% (Interest from 21.04.2020) Rs. 20 / Rs. 50 per day till return filing date
April 2020 20.05.2020 Upto 30.06.2020 NIL NIL
After 30.06.2020 18% (Interest from 21.05.2020) Rs. 20 / Rs. 50 per day till return filing date
3 Aggregate Turnover < 1.50 crores February 2020 20.03.2020 Upto 30.06.2020 NIL NIL
After 30.06.2020 18% (Interest from 21.03.2020) Rs. 20 / Rs. 50 per day till return filing date
March 2020 20.04.2020 Upto 03.07.2020 NIL NIL
After 03.07.2020 18% (Interest from 21.04.2020) Rs. 20 / Rs. 50 per day till return filing date
April 2020 20.05.2020 Upto 06.07.2020 NIL NIL
After 06.07.2020 18% (Interest from 21.05.2020) Rs. 20 / Rs. 50 per day till return filing date

[Amendment vide Notification Nos. 31 and 32 – Central Tax dated 03.04.2020]

b) In case of filing of GSTR-3B: [May 2020]

Tax period Aggregate Turnover in preceding Financial Year Due Date of filing Extended Due Date
May 2020 More than 5 crores 20.06.2020 Upto 27.06.2020
Upto 5 crores in the states of Chhattisgarh, M.P., Gujarat, Maharashtra, Karnataka, Goa, Kerala, T.N., Telengana, Andhra Pradesh, U.T. of Daman & Diu & Dadra and Nagar Haveli, Puducherry, Andaman & Nicobar Islands, Lakshadweep Upto 12.07.2020
upto 5 crores in the states of H.P, Punjab, Uttarakhand, Haryana, Rajasthan, U.P., Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, W.B., Jharkhand, Odisha, U.T. of J & K., Ladakh, Chandigarh, Delhi Upto 14.07.2020

c) In case of filing of GSTR-1:

Sl. No. Tax period Due Date Date of filing Late Fees
1 January to March 2020 30.04.2020 Upto 30.06.2020 NIL
2 March, April and May 2020 11th of the following month / 30th of following quarter Upto 30.06.2020 NIL

Note: If the GSTR-1 filed after 30.06.2020, Late fees of Rs. 20 / rs. 50 per day would be applicable till the date of filing the return.

[Amendment vide Notification No. 33/2020- Central Tax dated 03.04.2020]

Despite the fact that there is a lockdown situation in the whole country, the government although has given relief only in terms of filing the GST returns but they have not come out with the whole relief for the businesses in this kind of drastic situation in the whole world. They still open the window to charge interest from the businesses to charge Interest on delay in filing of GSTR-3B which should be waived off till the time when the situation becomes normal for doing the business.

3. Availment of ITC as per Rule 36(4)

Eligible ITC amounting to 110% as per GSTR-2A for the months of February to August 2020 to be cumulatively adjusted in the returns of tax period of September 2020.

Example of the same would be as follows:

Months Febr-uary March April May June July August Septe-mber Total Adjust-ment
Input as per GSTR-2A 80 90 95 85 95 90 85 90 710 110% of 710 = 781 (Total for Feb to Aug 2020)
Input as per books 100 100 100 100 100 100 100 100 800
Input taken in GSTR-3B 100 100 100 100 100 100 100 81 781  

4. Other Compliances

Compliances Time falls between (period) Extended time-limit
(i) Any proceedings, order, notice, intimation, sanction, approval by any authority, commission or tribunal.

(ii) Filing of any appeal, reply, application or furnishing of any report, document, return, statement or other record

20.03.2020 to 29.06.2020 30.06.2020
E-way bill (expiring during) 20.03.2020 to 15.04.2020 30.04.2020

Please note that the Government has not given any extension in the following cases:

Sl. No. Section / Chapter Contains
1 Chapter IV Determination of Value of Supply
2 Section 10(3) Option of paying tax under composition scheme lapses after aggregate turnover exceeds Rs. 1.50 crores / Rs. 75 lakhs (in notified states) in the preceding financial year.
3 Section 25 Registration under GST
4 Section 27 Casual Taxable Person
5 Section 31 Issue of Tax Invoice
6 Section 37 Statement of Outward Supplies (GSTR-1)
7 Section 39 GST Returns (GSTR-3B- date of filing extended through other notification) except ISD returns, TDS return and returns by registered non-taxable person.
8 Section 47 Late Fees (Waiver through Separate notification)
9 Section 50 Interest on delayed payment of tax (reduced interest –Separate Notification)
10 Section 69 Power to arrest
11 Section 90 Liability of partners of firm to pay tax
12 Section 122 Penalty for certain offences
13 Section 129 Detention, Seizure and release of goods and conveyance in transit.
14 Section 68 E-way bills
15 Rules made for the all of the above

The Government should provide the subsequential relief in terms of the following:

(i) Levy of tax on receipt basis for the Financial Year 2020-21 so that there should not be any liquidity crunch for the businesses in this hour of need of money.

(ii) Complete waiver of interest on delayed payment of GST and late fees on filing of GST returns till the month of July 2020 or when the things become normal for the businesses to run.

(iii) E-way bills provisions to stop till the month of July 2020 for frequent movement of goods without any barrier.

(iv) Due Dates of filing of GST returns to be extended for a considerable time period.

(v) No penalty should be levied for any general offences under section 122 till the month of September 2020 or for the considerable time period.

(vi) ITC as per books to be allowed and no requirement of reconciliation form GSTR-2A till September 2020.

(vii) Reply to Notices, Appeals and any other correspondences with the department should be extended till September 2020.

The businesses expect various measures from the government so that once the lockdown will get over and businesses start functioning, there should not be any liability from the government part in a compulsory way which blocks the fund for the businesses. Hence, Government must ensure sufficient measures which has already come out and the businesses are expecting more to come out in view of COVID-19 outbreak.

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