GST Amendments in the wake of COVID-19

GST Amendments in the wake of COVID-19
Bipul Kumar
Business Consultant
Contact us: 9304027546, 9560084833
Email: rsbkeducationalservices@gmail.com, bkumarca80@gmail.com
The spread of Novel Corona Virus (COVID-19) across many countries of the world, including India, has caused immense loss to the lives of people and resultantly impacted the trade and industry. In view of the emergent situation and challenges faced by taxpayers in meeting the compliance requirements under various provisions of the Central Goods andServices Tax Act, 2017 (hereinafter referred to as the “CGST Act”), Government has announced various relief measures relating to statutory and regulatory compliance matters across sectors.
Government has issued various notifications in order to provide relief to the taxpayers.

i) Notification 30/2020 :
1)  The due date to file form CMP-02 {Rule 3(3)} and Form GST ITC-03 {Rule 44(4)} extended –
 The last date to file form CMP -02 for any registered person who wanted to opt for composition scheme (section 10 as well as notification 2/2019 ) for the financial year 2020-21 was 31st March 2020, which has now been extended to 30th June 2020.
Which means any registered person will have to file intimation in Form CMP-02 on or before 30/06/2020 if he wishes to opt for Composition levy for the F.Y 2020-21. This is a positive amendment as looking into the current state of market , the tax payers will get some time to evaluate whether they want to go for composition or not in this year.
Also if any registered person wants to opt for composition scheme then he has to file form ITC-03 for reversal of ITC as per Section 18(4) read with  rule 44(4) of the CGST rules, with respect to that for F.Y 2020-21 any registered person who opts for composition scheme will have to furnish the statement of reversal of ITC in form ITC-03 on or before 31st July 2020.
2) Amendment in rule 36(4) regarding restriction of ITC availment :
A new rule was inserted in October 2019 according to which the provisional tax  credit (invoices of which are not reflected in GSTR-2A) can be claimed in GSTR-3B only to the extent of 10% of eligible ITC reflected in GSTR-2A. ( the restriction was 20% for the period 9th Oct 2019 to 31st Dec 2019).
As per the notification issued now, the said condition of restriction of ITC shall apply cumulatively for the period of Feb, March, April, May, June, July and August  2020 in Form GSTR 3B for the tax period of September 2020.
In this scenario there will be a lot of confusion indeed as already the tax payers and the consultants were facing a lot of issue to keep a track of this 10% ITC and practically many difficulties were arising now as per this notification to give a cumulative effect in the month of September will be a very tough task and almost next to impossible. We hope government provides more clarifications with respect to
ii) Notification 31/2020 :Lower rate of Interest subject to fulfilment of Conditions-
In this notification the government has specified the rate of interest for persons who are required to furnish returns in Form GSTR-3B and fails to furnish the same within due date but furnishes the same as per the date specified in the notification.
Tax Payers with Aggregate Turnover    (in preceding F.Y) :
Tax Period
Rate of Interest
If GSTR -3B is furnished by :
More  than Rs. 5 Crores
February 2020
March 2020
April 2020
Nil – for 1st 15 days from       the due date (here due date means original due date of furnishing the return )
9%  p.a  – From 16th Day onwards till the date of furnishing the return.
                                                                     
       24th June 2020
More than Rs. 1.5 Crores and upto 5 Crores
February 2020
March 2020
NIL
       29th June 2020
April 2020
NIL
      30th June 2020
Upto Rs. 1.5 Crores
February 2020
NIL
      30th June 2020
March 2020
NIL
      3rd July 2020
April 2020
NIL
      6th July 2020
Here the government has given a relief to all category of tax payers by lowering the rate of interest on fulfilling the condition mentioned.
However the reduced rate of 9% and Nil will only be applicable if the returns are furnished as per the date specified above, if at all the returns were not furnished by the said dates then the normal rate of interest will be levied i.e 18% from the due date of furnishing the return ( taxpayers should understand that the due dates have not been extended here due date will be same as earlier) also the regular late fees and penalty shall be imposed.
Therefore the above compliances should be met in time or else tax payer will have to bare a huge burden of interest , penalty and late fees.
 iii) Notification 32/2020 : Waiver of late fee subject to fulfilment of Conditions-
In this notification the government has specified that the amount of late fees payable by  persons who are required to furnish returns in Form GSTR-3B and fails to furnish the same within due date but furnishes the same as per the date specified in the notification shall be waived for the tax period specified.
Tax Payers with Aggregate Turnover    (in preceding F.Y) :
Tax Period
If GSTR -3B is furnished by :
More  than Rs. 5 Crores
February 2020
March 2020
April 2020
                                                                      
       24th June 2020
     
More than Rs. 1.5 Crores and upto 5 Crores
February 2020
March 2020
       29th June 2020
April 2020
      30th June 2020
Upto Rs. 1.5 Crores
February 2020
      30th June 2020
March 2020
      3rd July 2020
April 2020
      6th July 2020
The conditions are same as specified in notification 31/2020 relating to interest waiver, the late fees will be waived only if the returns are furnished within the date specified in this notification and if the tax payer fails to furnish the same he will have to pay the late fees from the due date of filing the return of that period till the date of furnishing the return.
v) Notification 34/2020 : Extension of due date to file GST CMP-08 and GSTR-4 .
1) Those registered persons who have opted for Composition Scheme are required to furnish statement every quarter containing details of payment of self assessed tax in Form GST CMP-08 , the due date of which is 18th day of the month succeeding such quarter.
So for the quarter Jan 2020 to March 2020, the due date would have been 18th of April 2020, which is now extended to 7th July 2020.
This is almost near to the date of furnishing the return of the next quarter, the tax payers will have to maintain all the data ready and well in time so that by the time of furnishing the next return they are having all data on hand.
2) Also the same class of persons have to furnish return for every financial year in Form GSTR-4. For F.Y 2019-20, the due date to file GSTR-4 was 30th April 2020 which is now extended to 15th July 2020.
vi) Notification 35/2020 : Extension of due date of compliances which fall between 20/3/2020 to 29/6/2020 .
1) In view of the spread of pandemic COVID-19 across many countries the govt. on the recommendation of the ) council notifies that :
“Any time limit for completion or compliance of any action, by any person, which falls between 20/3/2020 and 29/6/2020 has not been complied with then the time limit of such action shall be extended upto 30th June 2020.
The action may include all types of actions relating to notices, intimation, notification, sanction , approval, filing of any reports, documents, returns, documents, etc.
This notification shall not apply to  the following – Chapter IV- determination of value of supply, sections 10(3), 25, 27, 31, 37, 47, 50, 69, 90, 122, 129, 39 upto some extent, 68 as far as eway bill is concerned , and all corresponding rules to these sections.
2) Where an eway bill has been generated and its validity expires during 20/3/2020 to 15/4/2020, then the validity shall be deemed to have been extended till 30/04/2020.
vii) Notification 36/2020 : Extension of due date of filing GSTR-3B for the period May 2020 .
 For the Month of MAY 2020
Tax Payers with Aggregate Turnover    (in preceding F.Y) :
State/UT
Previous due date
New Due date
More than Rs. 5 Crores
All
20/06/2020
27/06/2020
Upto Rs. 5 Crores
Chhattisgarh,
Madhya Pradesh,
Gujarat,
Maharashtra,
Karnataka,
Goa,
Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman and Diu,
Dadra and Nagar Haveli,
Puducherry, Andaman & Nicobar Islands, Lakshadweep
22/6/2020
12/7/2020
Himachal Pradesh , Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam,  West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi
24/06/2020
14/7/2020

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