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Changes in GST due to Covid-19

The Covid-19 pandemic has raged its way across the country, and a lockdown was announced by the Central Government to combat the spread of the virus. The lockdown lead to various hardships for the citizens of the country. In this article, we will discuss the measures introduced by the Central Government to ease the burden on the GST taxpayers.

The prominent measures taken are:

Extension Of Time Limits For Filing Returns

Annual returns: The deadline for filing Annual Returns (GSTR-9 & GSTR-9C) for FY 2018-19 was extended to 30 June 2020. This was further extended to 30 September 2020 and then to 31 October 2020.

GSTR-1: For February, March and April 2020, and quarter ended 31 March 2020, the deadline for filing the return was extended to 30 June 2020. There was further extension provided as follows:

Month / Quarter Due Date
March 2020 10 July 2020
April 2020 24 July 2020
May 2020 28 July 2020
June 2020 05 August 2020
January – March 2020 17 July 2020
April – June 2020 03 August 2020

GSTR-3B:

  • For February, March and April 2020, the deadline for filing the return was extended to 24 June 2020.
  • For taxpayers with turnover more than INR 5 crores in the previous financial year, the deadline for filing the return for May 2020 was extended to 27 June 2020.
  • For taxpayers with turnover less than INR 5 crores in the previous financial year, the deadline for filing the return for May 2020 was extended to 12 July 2020 and 14 July 2020 based on the states listed in the notification.
  • For taxpayers with turnover less than INR 5 crores in the previous financial year, the deadline for filing the return for August 2020 has been extended to 01 October 2020 and 03 October 2020 based on the states listed in the notification.

Composition Dealers:

  • FORM GST CMP-08: The deadline for filing the return for the quarter ended 31 March 2020 was extended to 07 July 2020
  • GSTR-4: The deadline for filing the consolidated return for the financial year ended 31 March 2020 was extended to 15 July 2020. This was further extended to 31 August 2020 and then to 31 October 2020.

E-Way Bills: The validity of E-Way Bills expiring between 20 March 2020 and 15 April 2020 was extended to 30 April 2020. This was further extended to 31 May 2020.

Compliance:

  • The deadline for a taxpayer to file an appeal, reply, application or any other document or statement under the provision of the CGST Act 2017 between 20 March 2020 and 29 June 2020 was extended to 30 June 2020
  • The deadline for any authority, commission or tribunal to complete any proceeding or issue any order notice, intimation, notification, sanction or approval or such other action, between 20 March 2020 and 29 June 2020 was extended to 30 June 2020
  • When any time limit for completion or compliance of any action, by any authority, under section 171 of the CGST Act 2017 falls during the period between the 20 March 2020 to the 29 November 2020 and is not completed or the compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action is extended to 30 November 2020.

Relief On GST Input Credit

Presently, if an inward supply invoice does not appear on the taxpayers GSTR-2A, then the taxpayers can claim credit for such invoices only to the extent of 10% of the GST paid on such invoices. The Central Government has provided temporary relief for February, March, April, May, June, July and August of 2020 where the entire amount can be claimed as GST input credit. Taxpayers must note that such adjustments must be trued up in the September 2020 GSTR-3B.

Interest On Delayed Payment Of Tax

Month Category A Category B Category C
February 2020 Nil for the first 15 days after due date and 9% p.a thereafter till 24 July 2020 Nil till 30 June 2020 and 9% p.a. thereafter till 30 September 2020
March 2020 Nil till 03 July 2020 and 9% p.a. thereafter till 30 September 2020 Nil till 05 July 2020 and 9% p.a. thereafter till 30 September 2020
April 2020 Nil till 06 July 2020 and 9% p.a. thereafter till 30 September 2020 Nil till 09 July 2020 and 9% p.a. thereafter till 30 September 2020
May 2020 Nil till 12 September 2020 and 9% p.a. thereafter till 30 September 2020 Nil till 15 September 2020 and 9% p.a. thereafter till 30 September 2020
June 2020 Nil till 23 September 2020 and 9% p.a. thereafter till 30 September 2020 Nil till 25 September 2020 and 9% p.a. thereafter till 30 September 2020
July 2020 Nil till 27 September 2020 and 9% p.a. thereafter till 30 September 2020 Nil till 29 September 2020 and 9% p.a. thereafter till 30 September 2020

Category A: Taxpayers having turnover of more than INR 5 Crores in the previous financial year

Category B: Taxpayers having turnover up to INR 5 crores in the previous financial year, whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep

Category C: Taxpayers having turnover up to INR 5 crores in the previous financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi

The details are included in the notification here.

  • If any taxpayers have failed to file GSTR-3B due between July 2017 and January 2020, the late fee payable more than INR 250 is waived if the said return is filed between 01 July 2020 to 30 September 2020.
  • If any taxpayers have failed to file GSTR-4 due between July 2017 and March 2020, the late fee payable more than INR 250 is waived if the said return is filed between 22 September 2020 to 31 October 2020.
  • If any taxpayers have failed to file GSTR-10 due between July 2017 and March 2020, the late fee payable more than INR 250 is waived if the said return is filed between 22 September 2020 to 31 December 2020.

Other Points

  • A taxpayer can file nil GSTR-3B/GSTR-1 via SMS through the registered mobile number
  • The Central Government had given directions to issue all outstanding eligible refunds by 30 April 2020