E-way Bill Validity Extend & 10% ITC Deferred Due to COVID-19

The government came up with the conclusion of extending the deadlines for the GST e-way bill validation until 30 April 2020. Amid corona crises due to which the entire market is stagnant, this is a sigh of relief for all the businesses that were struggling with the issues of goods supplies stuck in between the two ports.

The entire accumulation of GST e-way bills generated Step by step guide on GST E Way Bill registration on Govt. Portal. There are 3 types of registrations as Registered Suppliers, Registered/ Unregistered Transporters & Unregistered Suppliers. Read More with the period of validity in-between 20 March 2020 to 15 April 2020, the validity of such e-way bills is said to be extended till 30 April 2020, said a notification from the Finance Ministry.

Adding on to the extension in e-way bill validity till 30 April, Finance Ministry has also called off the application of 10% restriction on availment of the input tax credit from February to Augst 2020. The 10% restriction on ITC availment will resume from September 2020, that will give enough time for the cash flow in the market, said tax experts.

By deferring 10% restrictions on GST Input Tax Credit (ITC) availment A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India., the government has supported the industries. This step of the government would prove favorable for the market as it will ease out the cash flow of the entire community of over 10 million taxpayers, said Rajat Mohan, senior partner AMRG associates.

The aforesaid provisions came into existence via the notification released by the government on Friday. Along with the said reliefs, the notification also confirmed relaxations in indirect tax compliances given by the government last week. Download and view official notification No. 35/2020 in PDF.