Introduction

Goods and Service Tax has taken an important part in the life of the business holders. The Indian Government has introduced the GST (Goods and Services Tax) in 2017 in order to bring service charges and indirect taxes under same room. Implementation of GST resulted in bringing several indirect taxes and service charges under one bracket. It is a destination-based tax and is implicated to all who have turn-over INR 40 lakhs per annum (10 lac in North-east and hilly areas). CBIC (Central Board of Indirect tax and Customs) has notified the increase in threshold turnover from INR 20 lakhs to INR 40 lakhs. The notification will come into effect from 1st April 2019.

The COVI-19 pandemic has resulted in a great deprivation in the business world across the globe. In order to cope-up with the current situation and to support every business holder, the government has come up with many strategies, exemptions and extensions of the due dates. In the context to this, the central government has made some changes like - interest rate reduction under GST, no late fees, extension of due date for filing of GST returns, etc.

The Changes in GST compliances include:

• GST composite scheme
• Extension in due dates for GST return filing
• Reduction in Interest Rate
• Waiver of Late Fee
• Extension of validity due date of E Way Bill Period

The changes are notified in notifications published on 03.04.2020.

GST Composition Scheme Extensions-

If the turnover is below INR 1 crore and in of North-Eastern states and Himachal Pradesh, the limit is now INR 75 lakh, the business entity can opt of GST composite scheme. This scheme can’t be opt by – Manufacturer, business involving inter-state supplies, casual taxable person, and business involving e-commerce supply. The GST return in this case is filled in form GST CMP-02, quarterly return in form GSTR-4 to be filled at the end of quarter by 18th of the month and annual return GSTR-9A by 31st December of next financial year. These dates are now extended -

• The timeline to opt for the GST composite scheme is extended to 30/06/220.
• An electronic intimation is required to be filed in form GST CMP-02.
• Furnishing of a statement is can be done by 31/07/2020 in form GST ITC-03.
• Input tax credit for the month of February 2020- August 2020, will be adjusted in return GST 3B filed in September 2020.

Extension of Due date for GST3B -

GST 3B is a type of GST return and is required to be filled by every GST registered entity even there is no business. Only following are exempted from this- Input Service Distributors & Composition Dealers, Suppliers of OIDAR and Non-resident taxable person. In order to avoid late fees, the GSTR-3B must be filed by the 20th of the subsequent month. The extension in the filing due dates are -

• If turnover is more than 5cr – Date to file return in form GST 3B is extended to 24/06/2020 for the month of February 2020 to April 2020.

• If turnover is more than 1.5cr and up to 5cr- Date to file return in form GST 3B is extended to 29/06/2020 for the month of February and March 2020 and for April 2020 is 30.06.2020.

• If turnover is up to 1.5cr- Date to file return in form GST3B is 30/06/2020 for February 2020, for March 2020 is 03/07/2020 and for April 2020 is 06/07/2020.

Reduction in Interest Rate –

• If turnover is more than 5cr-If the GST 3B return is filled by 24/06/2020 for the month of February 2020 to April 2020, then there will be no interest charged for the 15 days after due date, and after that 9% interest will be charged.
• There will be NIL interest for 15 days if payment is beyond 15 days of due date but up to specified date, plus 9% per annum for delay beyond 15 days.
• There will be interest at 18% for the entire period if payment is made beyond 24/06/2020 for the entire period beyond the due date, i.e. 20.03.2020

• If turnover is more than 1.5 cr and up to 5cr- If the GST 3B return is filled by 29/06/2020 for February and March 2020 and for April 2020 is 30/06/2020, then there will be no late filing interest.

Late fee Waiver -

• There is no change in the due dates of the filing of GSTR 1, only the late fees is waived off.
• These will no late fee charged or the late fee will be waived if in case the GST-registered company entity fails to file GSTR 1 for the quarter ending March 2020 and for April 2020 and May 2020.
• In case when return is not filed within due date for consecutive 3 months, then this can lead to blocking of E way bill

Extension of other due dates-

• Due date is extended to 07/07/2020 for filing CMP-08 for quarter ended on March 2020
• Due date is extended to 15/07/2020 for the filing of GSTR 4 for quarter ended on March 2020
• There also an extension up to 30/06/2020 in the time limit for completion of any action by any person or authority for any type of proceedings or passing of any order or any issue of notice etc.

Extension of E way bill validity period-

Electronic bill or E way bill is used for the goods movement. An entity can’t transport any good above the value of Rs. 50,000 without e-way bill even if they are registered with GST.

Latest update - VAHAN-e-Way Bill Integration - February 2020, the e-way bill portal got to the VAHAN system with which the vehicle registration number will be validated at the time of generating e-way bill.

Extension - If an E way Bill has a validity up-to 15^th April or is expiring between 20.03.2020 and 15.04.2020, then its validity to be extended till 30.04.2020.

Conclusion:

We already know that the GST is something that no one can avoid. And in this situation and the condition raised due to this pandemic of COVID 19 where the whole business market is low, it becomes more difficult to file for the returns. The Government is standing by us and providing all of its support to all the taxpayers by implementing different measures to reduce the pressure of compliance. Along with the support of the Government, all the taxpayers have the support of Coprseed also for reminding and timely filing of all the necessary returns and completing all compliance on time.