The Hon’ble Finance Minister of India, via press conference on 24.03.2020 has announced the following relief measures relating to Indirect Taxes and Direct Taxes, in view of COVID-19 outbreak in India. The necessary legal circulars and legislative amendments to give effect to said reliefs shall be issued in due course and GST relief shall follow with the approval of GST Council.
A. Goods & Services Tax (GST) & Customs Law:
1. Extension of time limit for compliances:
- The due date for
- issue of notice, notification, approval order, sanction order,
- filing of appeal, furnishing of return, statements, applications, reports, any other documents, and
- time limit for any compliance under the GST Laws/ Customs Act & other allied Laws
- where the time limit is expiring between 20thMarch 2020 to 29th June 2020
- shall be extended to 30th June 2020.
2. Filing of return GSTR – 3B:
|Registered persons having aggregate annual turnover||less than Rs. 5 Crore||more than Rs. 5 Crore|
|Due Date of GSTR-3B for the period of February, March & April’ 2020||Last week of June, 2020||Last week of June, 2020|
|Interest||No Interest||Reduced rate of interest @ 9% per annum from 15 days after the original due date as prescribed earlier before such relief.|
|Late Fee and Penalty||No late fee, and penalty to be charged for such late filing||No late fee and penalty to be charged, if complied before till 30th June 2020.|
In accordance to para 1 above, time limit of all compliances (including filing of return & statements i.e. GSTR-3B & GSTR-1), due date of which is expiring between 20thMarch 2020 to 29th June 2020, is extended to 30th June, 2020. Thus, under this para GSTR-3B and GSTR-1 of February to May’ 2020 can be filed upto 30.06.2020.
Whereas specific relief in regard to Interest, Late Fee & Penalty referred in para 2, is given for only GSTR-3B for the month of February, March & April’ 2020.
We shall update you once Notifications shall be issued in this regard by the Government.
3. Composition Scheme: The last date for opting for composition scheme under the GST has been 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 F.Y. 2019-20 by the composition dealers is extended till the last week of June, 2020.
4. Annual Return: The last 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.
5. Sabka Vishwas Dispute Resolution Scheme: Payment date under Sabka Vishwas Scheme shall be extended to 30 June, 2020. No interest for this period shall be charged if paid by 30 June, 2020.
6. 24X7 Custom clearance till end of 30th June, 2020.
B. Income Tax
7. Extension of time limit for compliance:
- The due dates for:
- issue of notice, intimation, notification, approval order, sanction order,
- filing of appeal, furnishing of return, statements, applications, reports, any other documents and
- time limit for completion of proceedings by the authority and
- time limit for any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains
- under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, Securities Transaction Tax law, Commodities Transaction Tax Law, Equalization Levy law, Vivad Se Vishwas law
- where the time limit is expiring between 20 March 2020 to 29 June 2020
- shall be extended to 30th June 2020.
8. IT Return for FY 2018-19: The last date for filing income tax returns for FY 18-19 has been extended from 31 March, 2020 to 30 June, 2020.
9. The date to link Aadhaar with PAN has been extended from 31 March, 2020 to 30 June, 2020.
10. Vivad se Vishwas Scheme: No additional amount will be charged from the declarant, if the payment is made by June 30, 2020.
11. Reduced rate on interest on delayed payments of tax:
- The Central Government has reduced the current rate of interest from 12%/ 18%, as the case may be to 9% per annum (i.e. 0.75% per month instead of 1/1.5 percent per month) on delayed payments of Advanced Tax, Self-assessment Tax, Regular Tax, Tax Deducted at Source, Tax Collected at Source, Equalization levy, Securities Transaction Tax, Commodities Transaction Tax made by an assessee/taxpayer between 20th March 2020 to 30 June 2020.
- Further, no late fee/penalty shall be charged for delay relating to this period.
-Pawan Arora (Joint Partner), ALA Legal
-Arpit Paliwal (Associate), ALA Legal