COVID-19 Relief Measure- Revised Due Dates, Waiver of Late Fees and Interest

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Yarab A | Apr-23-2020

In the view of prevailing COVID-19 pandemic and its impact on the businesses, the govt of India has made several changes related to GST compliance schedule and rules. These changes are made to provide relief to the trade and Industry in this tough period. 

Revised GST return due dates, wavier of late fees and interest for delayed filing, the extension of due dates of composition dealers etc. are some of the changes as part of COVID-19 relief measure announced for business registered under GST.

Let’s take a look at each of the changes recently announced.

Due date for filing GSTR-3B extended for May’20

The due date for filing GSTR 3B for May is revised. The new date is revised considering the aggregate turnover and the place of the business as explained in the below table.

GSTR-3B Due Date

Month

Turnover more than 5 crores

Turnover up to 5 crores

May, 2020

27th June, 2020

12th July,2020*

*For taxpayers having an aggregate turnover of up to 5 Crores in the previous financial year and the principal place of business is in the states listed below must file the May month return by 14th July,2020.

Tax Period

Principal Place of Business

Due Date

May,2020

Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi

14th July,2020

Wavier of late fee

Given the current situation, the due date for filing GST returns are revised for February to May,2020. It’s important to note that the extension of return filing dates is done only to wave the late fee applicable for delayed filing.

In other words, the due dates announced are not a straight extension of due dates, but these are due dates up to which the late fees will be not applicable if returns are filed within the given date.

Form GSTR-3B Return

GSTR-3B Due Date

Month

Turnover more

than 5 crores

Turnover exceeding

1.5 crores to 5 crores

Turnover up to

1.5 crores

Feb, 2020

24th June 2020*

29th June, 2020

30th June, 2020

March, 2020

24th June 2020*

29th June, 2020

3rd July,2020

April, 2020

24th June 2020*

30th June, 2020

6th July,2020

Form GSTR-1

GSTR-1 Revised Due Date

Tax period

Original Due Date

Revised Due Date*

February,2020

11th March,2020

--

March 2020

11th April,2020

30th June,2020

April 2020

11th May,2020

30th June,2020

May 2020

11th June 2020

30th June,2020

Quarterly taxpayers Jan to March 2020

30th April, 2020

30th June,2020

*Date till which the late fee is not applicable.

GSTR 7 Monthly – TDS RETURN

Tax period

Revised Due Date

March 2020

30.06.2020

April 2020

30.06.2020

May 2020

30.06.2020

Waiver of interest

Similar to a late fee waiver, interest on delayed filing and payment of tax is not applicable. However, this interest waiver comes with the condition.

Let’s understand the conditions for availing the interest waiver.

Taxpayers having aggregate turnover exceeding 5 Cr in the previous financial year

For these businesses, a grace period of 15 days from the original due date is allowed as interest-free. In other words, if returns are filed withing these 15 days following the end of original due date, interest will be nil.

Post that, interest at 9%, if returns are filed within 24th June,2020. If returns are filed after 24th June, interest at 18% will be levied.

Tax period

Interest not payable, if filed by

Date from which interest is payable@ 9% till the date of filing, if filed by 24th June, 2020

Date from which interest is payable@ 18% till the date of filing, if not filed by 24th June, 2020

Feb, 2020

4th April, 2020

5th April, 2020

21st March, 2020

March, 2020

5th May, 2020

6th May, 2020

21st April, 2020

April, 2020

4th June, 2020

5th April, 2020

21st May, 2020

Taxpayers having aggregate turnover exceeding 1.5 crores up to Rs. 5 crores in the previous financial year

Tax period

Interest not payable, if filed by

Interest @ 18% will be applicable if returns are failed after 29th or 30th June as applicable

Feb, 2020

29th June, 2020

March, 2020

29th June, 2020

April, 2020

30th June, 2020

Taxpayers having an aggregate turnover of up to Rs. 1.5 crores in the previous financial year

Tax period

Interest not payable, if filed by

Interest @ 18% will be applicable if returns are failed after the given due date

Feb, 2020

30th June, 2020

March, 2020

3rd July, 2020

April, 2020

6th July, 2020

Extension of due date for composition dealer

Form

Tax period

Extended Date

GST CMP-08

Jan to March 2020

07.07.2020

GSTR-4

FY 2019-20

15.07.2020

GST CMP-02

2020-21

30.06.2020

GST ITC-03

As on 31-3-2020

31.07.2020

Extension of validity period of e-way bills

e-way bills (EWB), whose expiry date lies between 20th March 2020, and 15th April 2020, would also be deemed to be valid till 30th April, 2020.

10% ITC on unmatched invoices is relaxed

Under the existing provision, a registered person is entitled to avail ITC on invoices or debit notes which not appearing in GSTR-2A to the extent of 10% of matched credit (invoices or debit notes reflecting GSTR-2A).

This requires a taxpayer to do monthly ITC Reconciliation with the books and GSTR-2A records and accordingly avail the ITC while filing GSTR-3B.  

As part of relief measure, this exercise has been temporarily relaxed by introducing this condition on the cumulative period from February to August 2020 and all adjustments of 10% ITC rule will be taken in the GSTR-3B for the month of Sep-2020.

Due date extension for other compliance activities

SL No

Categories of Persons / Transaction

Action to be done

Expiry Date falling between

Extended Due Date

1

Any authority under the Acts

Completion of any action under the Acts

20th March, 2020 to 29th June, 2020

30th June, 2020

2.

Any Authority, commission or Tribunal under the Acts

Completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called

20th March, 2020 to 29th June, 2020

30th June, 2020

3

Any person

Compliance of any action under the Act

20th March, 2020 to 29th June, 2020

30th June, 2020

4

Any person

filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called

20th March, 2020 to 29th June, 2020

30th June, 2020

 

Non- GST changes

Just like GST, even the other compliance like income tax, excise, customs etc are relaxed to provide relief to the business. Here is a quick summary of changes other than GST.

Income tax

  • The last date for IT returns for FY 2018-2019 is 30th June 2020.
  • Interest on delayed payments for FY 2018-2019 12% to 9%
  • No extension for TDS payment.  Delayed payment of TDS @ 9% till June 2020.
  • Aaadhar PAN linking date to be extended to 30th June 2020.
  • Vivad se Vishwas Scheme has also been extended to 30th June 2020 and from now to 30th June, there is no 10% charge (earlier there was a 10% charge if filed after March 31st).
  • Due dates for issue of notices, notification, approval order, sanction order, filing of appeal, furnishing of returns, return statement, application, any other document, any document compliance by the tax payer where time limit was expiring on 20th March 2020 shall all extended to 30th June 2020.

Customs and central excise

  • Sabka Vishwas scheme extended to 30th June 2020 and no interest will be levied.
  • Customs clearance at least till 30th June 2020 will be operating 24/7.

Financial services

  • 3 months relaxations for : 
    • Debit cardholders to withdraw cash from any  other banks’ ATM without any charges
    • Waiver of minimum balance fee
    • Reduced bank charges for digital trade transactions for all trade finance consumers

Corporate affairs

  • No additional fees will be charged for late filing during a moratorium period from 1st April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date. This will not only reduce the compliance burden, including the financial burden of companies/ LLPs at large but also enable long-standing non-compliant companies/ LLPs to make a ‘fresh start’
  • The mandatory requirement of holding meetings of the Board of the companies within prescribed interval provided in the Companies Act (120 days), 2013, shall be extended by a period of 60 days till next two quarters i.e., till 30th September
  • Applicability of Companies (Auditor’s Report) Order, 2020 shall be made applicable from the financial year 2020-2021 instead of from 2019-2020 notified earlier. This will significantly ease the burden on companies & their auditors for the year 2019-20
  • As per Schedule 4 to the Companies Act, 2013, independent directors (Ids) are required to hold at least one meeting without the attendance of non-independent directors and members of management. For the year 2019-20, if the IDs of a company have not been able to hold even one meeting, the same shall not be viewed as a violation.
  • Requirement to create a deposit reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020.
  • The requirement to invest 15% of debentures maturing during a particular year in specified instruments before 30th April 2020, maybe done so before 30th June 2020
  • Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months of incorporation. Here an additional time of 6 more months shall be allowed
  • Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the Companies Act, shall not be treated as a violation

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