FM Reliefs GST & Tax Compliance Over COVID-19 Pandemic

The union finance minister Nirmala Sitharaman has finally taken some relief measures on the basis of currently widespread coronavirus pandemic. The decisions are taken to provide relaxation to the various sectors as well as to the taxation industry. In her video conference with all the state finance ministers and panel, she has talked on all the sectors including Income Tax, GST, Customs & Central Excise, Corporate Affairs, Insolvency & Bankruptcy Code (IBC), Banking Sector and Commerce.

Extension of GST & Tax Due Dates by Govt Due to 2nd Wave COVID-19

During the devastation of Corona-19, The Central Government has provided relaxation in filing Returns (belated and revised), payment of tax (income tax and GST) and Filing of appeals.

• “CBDT issues circular no.9 related to the deadline extension of tax compliance under the Income Tax Act 1961” read circular
• For Income Tax, the Government has extended the last date for filing tax returns from March 31, 2021, to May 31, 2021. Read more
• For GST, the due dates for filing the following returns have been extended— GSTR-1 (sales return), GSTR-3B (summary return), GSTR-4 (annual composition return). Businesses having a turnover of up to the amount of Rs 1 crore (filing GSTR-3B for both months March and April) have 30 more days. And for organizations having turnover up to Rs 5 crore have the additional 15 more days to file along with a nil late fee. Furthermore, Due date for GSTR-1 and that of sales return has now been extended till date of May 26, 2021. Read more

Furthermore, the due date for the purpose of filing the objections and appeals to the Dispute Resolution Panel (DRP) and the Commissioner has henceforth been extended till May 31, 2021.

FOIJ Seeks Extension of GST Filing Deadline From Governor

In the wake of the second wave of Corona Pandemic, the Federation of Industries Jammu (FOIJ) has urged Hon’ble Lt. Governor, Manoj Sinha to provide an extension in the deadline for the filing of GST reimbursement in addition to budgetary support claims.

Lalit Mahajan, Chairman, FOIJ  drew the kind attention of Sinha towards the difficulties that are being faced by the industrial units in Jammu & Kashmir due to the prevailing current COVID-19 situation. Further, he also apprised the Governor about the difficulties that the industrial units are facing while uploading their online.

Announcement Related to Income Tax Act

• Financial Year 2018-19: the due date is 30.06.2020 to file Income Tax Returns Easy guide to file income tax return for the FY (financial year) 2018-19. Also, we added the document checklist related to Personal, Income, tax, bank, real estate, investment, etc. Read More
• Financial Year 2018-19: Delay in payments till 30.06.2020 will attract a 9% rate, Int rate reduced to 9% from 12%
• On TDS interest rate on delayed deposit on reduced to 9% which was 18% earlier, till 30.06.2020
• Dates of various other things such as notice, notification, intimation, approval order, statement filing, sanction order, filing appeals, applications, reports, any other compliance including investments, rollover of capital gains, wealth tax act, STT levy, Equalisation law, etc for which time limit expired on 20.03.2020 or thereafter be expanded to 30.06.2020.
• Aadhaar / PAN linking The Supreme Court on 4 February 2019 has recently issued the notice under which now the taxpayers would be asked to file the income tax returns with linking PAN. Read More date is extended to 30.06.2020
• VSV scheme extended to 30.06.2020 i.e. without extra 10% / 5% additional charge. and post 30.06.2020 additional payment will be applicable.

Announcements Regarding GST ACT

• For taxpayers having average annual turnover lower than Rs. 5 Crore, the applicable last date to file GSTR 3B Get to know details on GST return 3B form along with the online return filing procedure. Also, we mentioned GSTR-3B due dates, penalty & general queries. Read More which is due in March, April and May 2020 can now file the same by the last week of June 2020. Also, there is no interest, late fee, and penalty charged.
• And the other taxpayers can file returns due in March, April and May 2020 by the last week of June 2020 however there will be a reduced rate of interest @ 9 % per annum from 15 days after the due date (note that current interest rate is 18% per annum). Also, in this case, no late fee and penalty to be charged, if filed before or till 30th June 2020.
• Also one can opt for composition scheme which is extended till the last week of the June, 2020. Additionally, the due date for making payments for the quarter ending 31st March 2020 and filing of return for 2019-20 by the composition dealers is also extended till the final week of June, 2020.
• The date for opting composition scheme extended to 30.06.2020
• Vivad se Vishwas Bill Know about the tax dispute settlement scheme (Vivad se Vishwas Bill) under the IT act. Under this scheme, taxpayers can settle all disputes before the end of 30th June 2020. Read More Scheme extended till 30.06.2020. No penalty or interest levied on payments made under for assessees whose turnover is not more than 1.5 cr
• Customs clearance till 30.06.2020 to operate 24*7

MCA Matters Announcement

• MCA-21 registry – moratorium issued from 01.04.2020 to 30.09.2020. No additional late fees.
• For Board meetings – relaxation by a period of 60 days for next two quarters
• CARO 2020 will be made applicable from Financial Year 2020-21 and not this year.
• For the Financial Year 2019-20, if independent directors are not able to hold any meeting then it will not be considered as default.
• For new incorporated Companies, declaration of commencement of business can be furnished within an additional 6 months to the already existing 6 monthly limit
• Director of Resident Company who does not comply with minimum requirements of residing for 182 days – now relaxed
• The requirement of deposits reserves of 20% by the month of April now shifted to 30.06.2020.
• The requirements of 15 percent debentures maturing in specified instruments before 30.04.2020 extended till 30.06.2020

Insolvency and Bankruptcy Code

• A threshold of Rs. 1 lac is now raised to Rs. 1 cr to protect MSME effective immediately
• Only If the situation worsens, sections 7, 9 and 10 of IBC are expected to be suspended for 6 months.

Other Important Points

Department of Financial Services

• Debit cardholders who withdraw cash from any ATM (bank) from any bank – without any charge for 3 months
• No minimum balance requirements fee for three months
• Decrease bank charges for digital trade transactions for trade finance consumers