COVID-19 has hit almost all sectors of the economy. On the other hand, the Union Finance Minister Smt Nirmala Sitharaman has announced some relief for businesses to cope up with the difficult times of COVID-19. Amid the coronavirus crisis, provide relief to businesses grappling with the economic impact a retail industry body has sought a grace period of 90 days to pay statutory dues, a moratorium on payment of loans, instalments, and additional working capital credit, among other things. The country is virtually in a state of a lock-down. Several state governments have asked shops, malls and public places to close until further notice. With no revenue flow, the impact on retailers, big and small, is significant.

* There has been a clamour from taxpayers to provide relief from compliances and especially GST. Also, some key filing and payment relaxations that should bring rejoice to the industry. One hopes this is the first tranche and there are other tranches to follow, wherein benefits like GST rate reductions, exemption from import duties, reduced compliances etc. were announced.

GST , REFUNDS , CENTRAL EXCISE , CUSTOMS AND SERVICE TAX AND OTHER RELIEFS

* Taxpayers with an annual aggregate turnover of up to Rs 5 crore:

The due dates for filing GSTR-3B for February 2020, March 2020, and April 2020 have been extended up to the last week of June 2020. Accordingly, no late fee, interest or penalty shall be levied for them.

* Taxpayers with an annual aggregate turnover of more than Rs 5 crore: Except for a reduced interest charge, the due dates of GSTR-3B for February 2020, March 2020, and April 2020 stand extended up to the last week of June 2020. No late fee or penalty shall be levied. Any tax payments made after a delay of 15 days from the original due dates will attract a reduced interest at 9% p.a. instead of 18% p.a. The reduced interest charge will apply for the tax payments made between 20th March 2020 and 30th June 2020.

Taxpayers with an annual aggregate turnover of up to Rs 5 crore: The due dates for filing GSTR-3B for February 2020, March 2020, and April 2020 have been extended up to the last week of June 2020. Accordingly, no late fee, interest or penalty shall be levied for
them.

* Taxpayers with an annual aggregate turnover of more than Rs 5 crore:

Except for a reduced interest charge, the due dates of GSTR-3B for February 2020, March 2020, and April 2020 stand extended up to the last week of June 2020. No late fee or penalty shall be levied. Any tax payments made after a delay of 15 days from the original due dates will attract a reduced interest at 9% p.a. instead of 18% p.a. The reduced interest charge will apply for the tax payments made between 20th March 2020 and 30th June 2020.

* Taxpayers registered under the composition scheme:

The due date for filing the statement-cum-challan in CMP-08 for the last quarter of FY 2019-20, i.e. Jan-Mar 2020 is extended till the last week of June 2020. Similarly, the due date for filing GSTR-4 for FY 2019-20 is extended from 30th April 2020 to the last week of June 2020.

The last date for opting into the composition scheme for the FY 2020-21 has been extended from 31st March 2020 up to 30th June 2020: It applies to taxpayers availing both the schemes under Section 10 of the CGST Act as well as the Notification no. 2/2019 dated 7th March 2019.

* The option to file GSTR-3B by EVC instead of DSC is made available on GSTIN portal:
Tax payers can submit GSTR-3B without DSC. It appears that for other returns and documents also system will provide such facility in near future

* Form PMT – 09 is available on GST portal: Now, taxpayer can transfer the cash balance available under one head to another head of tax i.e. from CGST to SGST or interest or penalty or vice versa which means GST deposited under wrong head can be corrected.

E-WAY BILL

* The government extended the validity of e-way bills till April 30, that were set to expire between March 20 and April 15, giving a
big relief to industry grappling with issues of supplies and goods stuck in transit amid the nationwide lockdown due to Covid 19.
“Where an e-way bill has been generated and its period of validity expires during the period 20th day of March, 2020 to
15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th April, 2020

SABKA VISHWAS SCHEME

* The last date to avail the scheme is extended up to 30th June 2020. No interest will be charged for this period if the dues are paid before 30th June 2020.

OTHERS COMPLAINCES I.E FILING OF ANY APPEAL , REPLY

* The taxpayers and/or the tax authorities have got an extended time limit of up to 30th June 2020, where the time limit for the following compliance matter expires between 20th March 2020 and 29th June 2020:

* Issue of notice/ notification/ approval order/sanction order

* Filing of an appeal/furnishing of a return/statements/applications/reports or any other documents

CUSTOMS

* All exporters or importers have been assured about not facing any challenges in the customs clearance, as the facility will now operate 24×7 up to 30th June 2020.

* The taxpayers and/or the tax authorities have got an extended time limit of up to 30th June 2020, where the time limit for the following compliance matter expires between 20th March 2020 and 29th June 2020:

* Issue of notice/notification/approval order/sanction order

* Filing of an appeal/furnishing of applications/reports or any other documents

REFUNDS

* The government of India has been resorting to all possible means during the COVID-19 led shutdown in the country to curtail the fiscal menace. The Central Government will release GST and customs refunds shortly so that businesses do not face an acute liquidity crunch.

* Several sectors are witnessing a grim future, especially real estate, aviation, travel, tourism, and textile manufacturing. The move is said to benefit over one lakh crore taxpayers across the country. The total pending tax refunds to be cleared works out to Rs 18,000 crore.

* On the 9th of April 2020, the CBIC launched ‘Special Refund and Drawback Disposal Drive’ to expedite the process of refund disbursals. During this drive that runs till the 30th of April 2020, the GST authorities shall disburse all the pending
GST refund and drawback claims made up to the 7th of April 2020.

A set of instructions have been issued to the GST authorities to ensure that only genuine claims are processed while maintaining the speed. Proper due diligence must be done as per the GST law, and all communication with the taxpayers will be done over email. Further, all the deficiency memos earlier issued may be reviewed, and the refunds/drawback claims may be considered on merit basis.

 SYMPATHATIC VIEWS

* It will take a considerable period of time for businesses to recoup from the aftermath of the COVID-19. Hence, the extended time should be prudently used by the businesses to explore ways to be more tech-focussed. They should now completely alleviate compliance using digital means. The steps include the use of cloud-based services, developing strong controls and systems for their teams to work digitally and remotely.