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Introduction:
Recently three years has been completed to GST and now government is trying to streamline the various procedure by amending previously implemented law along with issuing various new notification. In recent times there were many changes in provision along with extensions of various due dates. Let us discuss various relaxation provided by government and increase in compliance burden for assessee.
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Relaxation provided under GST
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2.1 Reduction in Interest Liability : – Previously government had issued various due date for furnishing GSTR-3B for the month of February, 2020 to April, 2020 by taxpayers having aggregate turnover in the previous financial year of up to Rs. 5 Crore; and in this case it was notified that there will be no interest liability if the return is furnished within revised due date. Now the relaxation has been provided that even if return is filed after due date interest will be levied at
(9% p.a.) instead of 18% (p.a.) from revised due date till date of furnishing the return.
2.2 Reduction in Late Fees : Recently GST Council has announced measures in relation to waiver/reduction in late fees to clean up the pendency in the GST return filings for the period from July 2017 to January 2020. It has been announced that there will be Nil late fee if there is no tax liability; and maximum late fee or Rs. 500/- per return if there is any tax liability. The above benefit would be available to taxpayers furnishing their GSTR-3B between 1 July, 2020 to 30 September, 2020.
Return | Turnover in Preceding F.Y | Period of Return | Revised date |
GSTR-1 | Up to 1.5 crores | April to June, 2020 | 3rd August, 2020 |
January to March, 2020 | 17th July, 2020 | ||
More than 1.5 crores | March,2020 | 10th July, 2020 | |
April, 2020 | 24th July, 2020 | ||
May, 2020 | 28th, July, 2020 | ||
June, 2020 | 5th August, 2020 | ||
GSTR-3B | Up to 5 crores | February,2020 | Due Date: – 30 June 2020. Interest will be NIL till 30 June 20, and thereafter it will be 9% from 30th June, 2020 till 30 Sep 20. |
March, 2020 | Due Date: -05 July 2020. Interest will be NIL till 5th July 20, and thereafter it will be 9% from 5th July, 2020 till 30 Sep 20. Thereafter it will be 18% |
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April, 2020 | Due Date: -09 July 2020. Interest will be NIL till 9th July 20, and thereafter it will be 9% from 9th July, 2020 till 30 Sep 20. Thereafter it will be 18% |
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May, 2020 | Due Date: -12 September 2020. Interest will be NIL till 12th September 20, and thereafter it will be 9% from 12th September, 2020 till 30 Sep 20. Thereafter it will be 18% |
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June, 2020 | Due Date: -23 September 2020. Interest will be NIL till 23rd September, 2020 and thereafter it will be 9% from 23th September, 2020 till 30 Sep 20. Thereafter it will be 18% |
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July, 2020 | Due Date: -27 September 2020. Interest will be NIL till 27th September,2020 and thereafter it will be 9% from 27th September, 2020 till 30 Sep 20. Thereafter it will be 18% |
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More than 5 crores | February,2020 | Due Date: – 24 June 2020. Interest will be NIL till 4 April 2020, From 4th April to 24 June 20, it will be 9% and from 25th June till date of payment thereafter 18% |
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March, 2020 | Due Date: – 24 June 2020. Interest will be NIL till 4 April 2020, From 4th April to 24 June 20, it will be 9% and from 25th June till date of payment thereafter 18% |
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April, 2020 | Due Date: – 24 June 2020. Interest will be NIL till 4 April 2020, From 4th April to 24 June 20, it will be 9% and from 25th June till date of payment thereafter 18% |
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May, 2020 | Due Date: – 27 June 2020. Interest will be 18% after 27th June, 2020. |
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June, 2020 | Due Date: – 20 July 2020. Interest will be 18% after 20th July, 2020. |
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July,2020 | Due Date: – 20 August, 2020. Interest will be 18% after 20th August, 2020. |
2.3 Opportunity for filing application of Revocation of cancellation of registration : It has been decided to provide an opportunity for the filing of an application for the revocation of the cancellation of registration up to 30th September 2020. So now if registration of any taxpayers has been cancelled on or before 12th June, 2020 then he can file application for revocation of cancellation of registration till 30th September, 2020.
2.4 Extension of Time limit for filling GSTR 9/9C and other return : The limit to file the GSTR 9 (Annual Return) and GSTR 9C (Reconciliation Statement to be filled by assessee covered under audit.) return/reconciliation statement has been extended till 30th September,2020 for financial year 2018-2019. Along with this there is also revision in date of filing GSTR 5, 6, 7 and 8 for the month of March,2020 to July,2020 till 31st August,2020. The above return is to be furnished by following taxpayers and their revised due dates will be as follows:
Return | Concerned Taxpayer | Period of Return | Revised date |
GSTR-5 | Non-resident foreign taxpayers registered under GST and carry out business transactions in India | March,2020 to July,2020 | 31st August,2020 |
GSTR-6 | Input Service Distributor (ISD) | March,2020 to July,2020 | 31st August,2020 |
GSTR-7 | Monthly return to be filed by persons required to deduct TDS | March,2020 to July,2020 | 31st August,2020 |
GSTR-8 | E-commerce operators registered under the GST who are required to collect tax at source | March,2020 to July,2020 | 31st August,2020 |
2.5 No GST in case of Salary to Directors: The clarification in law was must and now it has been clarified that any director who is working in capacity of employee (Whole Time Director including Managing Director) then it will be covered under service rendered by employee to employer in relation to employment and the said service is not considered as supply as per Part I of Schedule III to CGST Act, 2017 Further if director is working as Independent Director then in that case company will be liable to pay RCM.
2.6 Introduction of PMT-09: This is the major relief that has been provided by government. It allows the taxpayer to transfer any payment which wrongly done in one head to be transferred in another head. It is worth noting that here we can use the form only when any payment made by us in cash has been wrongly done in one head instead of another head. If case were, we have wrongly levied CGST/SGST instead of IGST or vice versa, then in that case we cannot use this form and we are required to claim refund for the same.
2.7 Relief by allowing refund of ITC: Earlier, the government vide circular No. 135/05/2020-GST dated 31 March, 2020 had stated that the refund of accumulated Input Tax Credit (ITC) should be restricted to invoices appearing in GSTR-2A of the applicant. However, it was being observed that certain officers had rejected refund claims of accumulated ITC pertaining to imports, ISD invoices, RCM, etc. which do not reflect in GSTR-2A. Therefore, to provide relief to taxpayers, the government vide Circular No. 139/09/2020-GST dated 10 June, 2020 has now clarified that the restriction on refund of accumulated ITC as the per the old Circular does not in any way impact the refund of ITC on invoices/documents pertaining to imports, ISD invoices, and inward supplies on which GST has been paid under RCM, etc.
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Questions that may arise in respect of this updates
Question 1: Mr. Raj has furnished his return GSTR-3B relating to month of June after the revised due date he wants to know what will be the period on which interest will be levied?
Answer: In this regard it has been clarified that interest will be levied at the rate of 9% p.a. and the period will be commencing from revised due date till the date of payment.
Question 2: Mr. J has wrongly paid the amount under the head of IGST instead of CGST whether there is any remedy which is available with Mr. J?
Answer: Mr. J has can file form PMT-09 and request to change the head of payment for this purpose.
Question 3: Mr. Dev has not furnished ITR for last 8 months, due to this his registration has been cancelled what will be the remedy available with him to restore his registration? whether he can do so? If yes, what will be the last date for such remedy.
Answer: Firstly, Mr. Dev has to file all his pending return along with late fees, here he can also avail the benefit of reduced late filing fees. Further he will be eligible to file application for revocation of cancellation of registration till 30th September, 2020
Question 4: Mr. Raj wants to avail credit of some bill pertaining to financial year 2018-19; he has not shown claimed such credit in his GSTR-3B in any of his return. He is of the view that he can avail such credit in GSTR-9. Whether he can do show? What will be last date of filling GSTR 9 in such case?
Answer: As per relaxation provided by government last date for filling GSTR-9 for F.Y. 2018-19 is 30th September, 2020. However, Mr. Raj will not be eligible to claim the credit as last date to claim the credit is earlier of
- Due date of filling of GST return for September of next financial year to which credit relates or
- date of filling annual return.
Question 5: Mr. Shiva has paid reverse charge on certain service, he wants to claim refund of certain service however, GST officers have denied his application for refund stated that such invoices are not appearing in GSTR-2A. Whether Mr. Shiva is wrong in his claim?
Answer: No, the government vide Circular No. 139/09/2020-GST dated 10 June, 2020 has now clarified that the restriction on refund of accumulated ITC as the per the old circular does not in any way impact the refund of ITC on invoices/documents pertaining to imports, ISD invoices, and inward supplies on which GST has been paid under RCM, etc.
Conclusion: Apart from all there are also many relaxations which has been provided in custom and also there has been introduction of new facility that is allowing the taxpayers to file NIL return (GSTR -3B) simply by complying the stated procedure.