The Covid-19 pandemic has badly hit all the manufacturing and servicing sector. While the world is grappling with this epidemic, the government has provided relief to the businessman to fight with the economic effect of the outbreak. To ease down the impact, the government has not only extended the deadlines for filing the GST returns but has also made relaxing norms to file the returns. These are some of the relief measures taken by the government for the taxpayers of the country.
The launch of GST implied as Goods and Services tax has been done with the expansion of the economy, GST simplified the old tax regime system of indirect taxes with a single comprehensive tax system.
The Finance Minister has passed the amendment. The new legislation is not to be regulated in all countries. Some of the regions are relaxed. The dates are rumored to be 30 June, but it can be 29, 27, and 30 in the different areas. He also added by saying that companies with a turnover of fewer than five crores are not supposed to pay an interest rate. The country has cut down on interest rates, late fees, and penalties at a general level.
The sudden upset of the pandemic has put down everyone. People are waiting for their end to come. But, we need to learn to survive with this pandemic only. The panic mode needs to stop, and people need to move and live with it.
All the segments of the economy are shifting due to corona. The medical and public health is beating the bush to fight. More social processes are raised. GST is a regulatory force and needs to be taken into consideration.
More than the disease, there is a fear virus catching tons of people. The fear can cause terrible harm to vulnerable people. Even the unaffected area and people are weak. The tightening of the economy at a leather level is conducted to protect the economy and save it.
Extended deadlines for GST filings
a). For filing GST returns:
The government has extended the deadline to submit the GST returns for March, April, and May 2020. You can now pay the taxes till June 30. The businesses whose turnover is less than five crores can now submit the GSTRA-3B returns by the end of June 2020 without any interest or penalty. However, the companies whose turnover exceeds the limit of five crores have to pay an additional interest of 9% for the fifteen days after the original due date of filing the returns.
b). For the composition scheme:
The deadlines for the composition scheme have also been extended to June 30, 2020. You can now opt for the composition scheme for paying the taxes under the revised date.
c). For any notification:
Further, any dates for assessment or any due notice has been postponed from March 31, 2020, to June 30, 2020.
d). Extension of e-bills validity:
The government has also extended the validity of e-bills which expires between March 15 to April 30. While a lot of consignments were delayed due to the expiration of validity dates, there were hefty losses to the dealers.
e). For the VAT payments:
The government has also extended the deadlines for paying the VAT. The deadline for paying the VAT has been postponed in Delhi from March 31 to June 30, 2020.
f). Relaxation of norms:
The government has also eased the process of filing the GST returns by taking the following measures.
g). Ease tax payments:
To ease the tax payments on the bad debts, the government has decided to move to cash-based payment methods. It is planning to review sectors such as restaurants and cafes, Catering and Hospitality, and Airlines for cash-based payment methods.
h). Refunding for GST returns:
You can now track the status of GST returns online through the GST portal. While the Central Board of Indirect Taxes & Customs has also informed that it is making efforts to refund the duties on goods and services tax immediately, it is providing transparency in the process by keeping it online.
i). For outstanding payments:
In cases where the customers have not paid any outstanding amounts, the government has proposed to relax payments on the GST invoice.
j). Deferment of input tax credit:
He input-tax credit for February- August will be adjusted in September, and the taxpayers can avail of the postponement of 10% restriction imposed on availing the input tax credit.
The businesses are currently suffering huge losses amid the lockdown. There are various sectors which have proposed to cut the GST rates. While the decision regarding the cut in GST rates has yet to be taken, it will certainly not be easy for the government as it is currently experiencing the negative growth in filing for GST returns.