Covid-19 Pandemic is being dubbed as the worst disaster of this century so far which has resulted in forced lock down measures across the globe. Every business sector barring few have been affected by this Pandemic causing a serious dent in their cash flows and profits. In India, Central Government forced the nationwide lock down on 24th March.
However,various relief to businesses were announced by government as part of their AatmaNirbhar (Self-Reliant) Bharat (India). On similar lines, CBIC (Central Board of Indirect Taxes & Customs) has announced relief measures pertaining to GST law and compliance to help businesses.
These relief measures range from Relaxations & Extensions in Return Filing as well as regarding applicability of certain provisions under GST Law.This article covers all such measures in detail.
Relaxations & Extensions given in Filing Dates of GSTR-3B (Notification No.54/2020-CT dated 24th June 2020)
For Taxpayers having Aggregate Turnover > Rs.5 Cr in preceding F.Y.:
For Taxpayers having Aggregate Turnover upto Rs.5 Cr in preceding F.Y:
Relief Given in Levy of Interest in Delay in Filing of GSTR-3B (Notification No.51/2020-CT dated 24th June 2020):
If the Registered Taxpayer fails to furnish the return under Form-GSTR 3B returns for the tax periods from July 2017 to July 2020 but furnishes the returns till 30th September 2020, the total amount of late fee payable shall be waived off completely if the tax payable is nil and shall be capped at Rs.500 per return in case there is any tax liability. (Notification No.57/2020-CT dated 30th June 2020 read with Notification No.52/2020-CT dated 24th June 2020).
Extension E-Way Bill Validity Period
The validity of E-way bills (EWBs), generated on or before 24th March 2020, and whose validity expiry date lies between 20th March 2020 and 15th April 2020, is deemed to have been extended till 30th June 2020.
Extensions given in Filing Dates of GSTR-1 (Notification No.53/2020-CT dated 24th June 2020)
Extensions given in Filing Dates of Other GST Returns
Extension in Due Date & Applicability of GSTR-9/9C for FY 18-19:
The CBIC has issued Notification no. 41/2020 – Central Tax dated 5th May, 2020 which states that the time limit for filing of Annual Return specified under Section 44 of the Central Goods and Services Tax Act, 2017 has been extended till 30th September, 2020.
Relief for Exporters under GST:
Extension of Validity of Letter of Undertaking (L.U.T.) of FY:19-20
Notification No. 55/2020 Central Tax dated 27th June 2020, where the requirement under the GST Law for furnishing of L.U.T. during between the period from 20th March to 30th August 2020, has been extended till 31st August 2020.Taxpayers may quote the reference no of the L.U.T. for the year 2019-20 in the relevant documents.
Extension of Time Limit of Application of Refund u/s 54, CGST Act, 2017
As per Notification No. 55/2020-Central Tax dated 27th June 2020, where the timeline for any compliance required as per sub-section (1) of section 54 of the CGST Act,2017 falls during the period from 20th March 2020 to 30th August 2020, the same has been extended till 31st August 2020.
Accordingly, the due date for filing an application for refund expiring during the said period has also been extended till 31st August 2020.
Relief to Merchant Exporters
CBIC vide Notification No. 55/2020-CT dated 27th June 2020 along with Circular no.138/08/2020 prescribed that time limit for Export during the period from 20th March 2020 to 30th August 2020 has been extended up to 31st August 2020.
Merchant Exporters are those Exporters who procure goods from local vendors and export them outside India.They are intending to export goods outside India.They may or may not have manufacturing facilities.They are also called trade exporters.Those Vendors from whom goods are procured by Merchant Exporter shall charge tax at the rate of 0.1% on the taxable value of goods supplied to Merchant Exporters on the precondition that Merchant Exporters have to export goods within 90 days of date of tax invoice issued by local vendors.
Accordingly, it is clarified that the said requirement of exporting the goods by the merchant exporter within 90 days from the date of issue of tax invoice gets extended to 31st August , 2020, provided the completion of such 90 days period falls within 20th March 2020 to 30th August 2020.
Clarification on GST Rate on Alcohol-based Hand Sanitizers
Ministry of Finance (MoF) vide its Press Release dated 15th July 2020 issued "Clarification on the issue of GST Rate on Alcohol-based Hand Sanitizers".
With this clarification, MoF has made it clear that hand sanitizers shall attract the rate of 18% under GST and Inputs for manufacturing Hand Sanitizers are chemical packing material, input Services, shall also attract a GST rate of 18%.
Lifting of Restriction under Rule 36(4) till August 2020 (Input Tax Credit Capping)
However, CBIC has temporarily suspended the effect of the above Notification for the period of February 2020 to August 2020 and prescribed that GSTR-3B for September 2020 shall be furnished with Cumulative Adjustment of I.T.C. for the said months.(Notification No.30/2020-CT dated 3rd April 2020).
Relaxation in Specified Blocked Credit Under 17(5)
The Ministry of Home Affairs (M.H.A.) in its order dated 15th April 2020 has provided measures to be implemented in all offices, factories and other establishments. In Annexure II of said order, M.H.A. has issued Standard Operating Procedure which is mandatory to be implemented in offices, factories, and other establishments for the safety of their employees. Some of the important measures covered by the order are:
- Medical Insurance for the workers to be made mandatory.
- For workers coming from outside, a special transportation facility will be arranged without any dependency on the public transportation system.
Section 17 (5) of the CGST Act, 2017 clearly disallows I.T.C. on medical insurance, hiring of a motor vehicle, etc taken for employees provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force. Therefore, as per M.H.A. guidelines dated 15th April 2020 I.T.C. is admissible on medical insurance and on the hiring of vehicles.
Various nature of expenses and applicability of these provisions could be tabulated as below:
GST Department to dispose of Pending Registration Applications
The Central Board of Indirect Taxes & Customs (CBIC) has notified vide instruction no. CBEC-20/06/11/2020-GST dated 17th July 2020 to dispose of all pending applications of Registration on or before 30th July 2020 as a “special drive”.
Sub-Section 10 of Section 25 of CGST Act, 2017 read with Rule 9 of CGST Rules, 2017 provides that Application of Registration shall be deemed as approved after a period of three working days if the proper officer fails to take any action on the said application within the said period of three working days.
Strong apprehensions were raised on the possible misuse of the deeming provision during the COVID lock down period, where either the central/state tax offices were closed or were functioning with skeletal staff. Since lock down applied across all establishments including those belonging to the Governments (Central and State), during the lock down period there being no “working days”, it had been decided that the approval of the application of registration would not be granted on the portal w.e.f. 25th March 2020.
However, since the lock down is over in most of the areas and the offices are open since 1st June 2020, deemed approvals have been granted for all those applications pending as on 30th June 2020, which had not been processed till 15th July 2020. It has been further decided that the applications received thereafter which remain pending as on 28th July 2020 shall be deemed approved on 31st July 2020 and the 3 days deemed approval of the application of registration would be resumed from 1st August 2020. Accordingly, all the pending registrations shall be disposed of, on or before 30th July 2020 as a “special drive”.
Extension of Time Limit to File Reply of Notices and Appeals
CBIC vide notification No. 55/2020-CT dated 27th June 2020 has prescribed that time limit for Filing Reply of Notices and Appeals expiring during the period 20th March 2020 to 30th August 2020 has been extended up to 31st August 2020.
Relief Given to Insolvency Professionals
CBIC vide Notification No.39/2020-CT dated 5th May 2020 stated that:
An IP/RP is not required to obtain a fresh GSTIN if the corporate debtors have furnished the statements under section 37 and the returns under section 39 of the said Act for all the tax periods prior to the appointment of IRP/RP .
Extended the date of obtaining registration. It stated that it should be done within thirty days of the appointment of the IRP/RP or by 30th June, 2020, whichever is later.
CBIC Notifies E-Invoicing for Specified Companies
The Central Board of Indirect Taxes & Customs (CBIC) vide Notification No.60/2020-CT dated 30th July 2020 has notified E-Invoicing for Companies whose Turnover exceeds Rs.500 Crores in a Financial Year from 1st October 2020.
Further, Units located in Special Economic Zones(SEZ) are not required to follow E-Invoicing Rules.
Source: www.cbic-gst.gov.in
Disclaimer: TaxAvant is meant purely for the educational purpose of Tax Laws and Regulatory Updates. It contains only general information about tax-related matters. It is not professional advice, and should not be treated as such. This Blog should not be substituted for professional advice. For Specific Queries, Please post in the comments section.
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