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Updates in Due Dates amidst COVID 19 Lockdown

06 May 2020: The world of GST and taxation have been going through tremendous changes due to the lockdown. The corona-virus pandemic has affected not just the health of the country but also our economy. The finance ministry has been giving out relief measures amidst COVID-19 and has made several changes in the GST return filing due dates.

To keep our readers updated, we have collated the following extensive lists, tables and have also covered updates from all areas in GST in utmost detail. So, here are updates in GST due dates amidst COVID 19 Lockdown:

1. Update in GSTR 3B Due Date 

2. Update in GSTR 1 Due Date

Note: Taxpayers having annual turnover up to Rs 1.5 crores can opt to file the GSTR-1 once in every quarter

3. Update in Annual Returns Due date

Note:

• The GSTR 9 return needs to be filed by Regular Taxpayers filing GSTR 1, GSTR 2, and GSTR 3. It needs to be filed electronically on the GST portal directly or through a facilitation centre. Section 44 of CGST Act, 2017 mandates all GST-registered taxpayers (except casual taxable persons, non-resident taxable persons, Input Service Distributors, and individuals paying taxes under Section 51 or Section 52) to furnish annual returns in the Form GSTR 9 (GSTR 9A, GSTR 9B, or GSTR 9C as per the types of taxpayers).
• GSTR 9A is for Taxpayers under Composition Scheme
• E-commerce operators should file GSTR 9B
• GSTR 9C is applicable for annual turnovers of INR 2 crores or more
• Taxpayers whose annual turnover exceeds INR 2 crores in a Financial Year are required to get their accounts audited by a practicing Chartered Accountant or Cost Accountant before filing returns in Form GSTR 9C.

4. Composition Taxpayers

Note:
This means any regular taxpayer who wants to opt for composition scheme for FY 2020-2021, the intimation in FORM GST CMP-02 can be filed on or before 30-06-2020 and Form GST ITC-03 for ITC reversal should be furnished by 31-07-2020.

5. Other Returns

Note:

• GSTR 5 – Every registered non-resident taxable person is required to furnish a return in GSTR-5 in GST Portal
• GSTR 5A – The filing of GSTR 5A is mandatory for the non-resident OIDAR service providers
  (Online Information and Database Access or Retrieval (OIDAR))
• GSTR 6 – GSTR 6 is a monthly return that has to be filed by an Input Service Distributor.
• GSTR 7 – GSTR-7 is a monthly return to be filed by the persons required to deduct TDS under the GST.
• GSTR 8 – GSTR-8 is a monthly return to be filed by e-commerce operators registered under the GST.
• ITC – 04 – Form To Claim Input Tax Credit On Job Work

7. Update in E-Way Bill

E-way bill generated up to 24th March 2020 and if its validity period expires anytime between 20th March 2020 and 15th April 2020, shall remain valid until 31st May 2020 (GST Notification 39/2020)

8. Updates for Exporters

The validity of the Letter of Undertaking (LUT) extended to 30th June 2020 for FY 2019-20 and fresh LUT to be filed for the FY 2020-21 by 30th June 2020.
In other words, the exporters who intend to export without paying Integrated GST (IGST) can continue to do so in the current financial year.
They must quote the LUT reference number of the FY 2019-20 in their export documents.
(Circular 137/07/2020)

The requirement of exporting the goods by the merchant exporter within 90 days from the date of issue of tax invoice by the registered supplier gets extended to 30th June, 2020, provided the completion of such 90 days period falls within 20.03.2020 to 29.06.2020
(Circular 138/08/2020)

The requirement of exporting the goods by the merchant exporter within 90 days from the date of issue of tax invoice by the registered supplier gets extended to 30th June, 2020, provided the completion of such 90 days period falls within 20.03.2020 to 29.06.2020
(Circular 138/08/2020)

Extension of the two-year time limit for claiming GST refund that expired on 31 March 2020. The circular explicitly states that such taxpayers may apply in Form RFD-01 by 30 June 2020
(Circular 137/07/2020)

Note:

• GST LUT or Letter of Undertaking can be filed by exporters using Form GST RFD 11 to enable exports from India without making IGST payment. GST registered persons not eligible to file under GST LUT can undertake exports by furnishing export bond.
• Merchant Exporter means a person engaged in trading activity for exporting of goods. Merchant Exporter procures goods from the manufacture and export same in his firm name.

9. New Entry – PMT 09 Challan

The facility to file PMT-09 and the CGST rules governing the same came into effect from 21st April 2020 via GST notification 37/2020

• It is a challan which can be used to shift amount of tax, interest, penalty, etc. that is available in the electronic cash ledger to any other tax head, cess, interest, penalty, etc.
• All the registered taxpayers are eligible to file PMT-09 for shifting the balance available in Electronic Cash Ledger to any other appropriate tax head or cess head or interest or penalty etc
• Form PMT 09 consists of major and minor heads. Major head are Integrated tax, Central tax, State/UT Tax, and Cess. Minor head are Tax, Interest, Penalty, Fee and others.
• The form is useful if a taxpayer wants to transfer an amount from one minor head to a major head or vice versa. The amount can also be transferred from one minor head to another minor head under the same major head.

10. Assessments and Proceedings

• Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.
• Payment date under Sabka Vishwas Scheme shall be extended to 30th June, 2020. No interest for this period shall be charged if paid by 30th June, 2020

11. Clarification on Practical Aspects

Clarification 1
In case of advance payments made to the service providers for any future services that later got cancelled due to the lockdown. Let’s understand this with an illustration:

Two parties have agreed for a service, and the buyer has paid an advance amount to the service provider. But later on, the contract gets cancelled for any reason, including the lockdown. The service provider could have acted in either of the two ways.

(a) The service provider may have issued a tax invoice for the entire transaction value and deposited the GST amount with the department before the lockdown.

Now, he must issue a credit note to the recipient for the same value, including GST. The credit note must be declared in GSTR-1 of the month in which the credit note was issued and subsequently adjusted in GSTR-3B.

If there is no sufficient outward tax liability in GSTR-3B against which the credit note can be adjusted. In such cases, form RFD-01 can be filed to claim this GST by selecting “Excess payment of tax if any”.

(b) The service provider may have issued a receipt voucher acknowledging the advance amount received by him, without raising any tax invoice. He would have also deposited the GST amount with the department.

In such a case, after the contract gets cancelled, he must issue a refund voucher to the recipient for negating the transaction effect. Subsequently, he can claim the GST refund by filing form RFD-01 under the category “Refund of Excess Payment of Tax”.

Clarification 2
GST treatment of sales returns, where the tax invoice has already been issued. Similar to the first case mentioned above, the supplier must issue a credit note, declare the same in GSTR-1 and GSTR-3B of the relevant month in which the credit note was issued.

Any tax adjustment which is not possible in GSTR-3B shall be claimed as a refund in Form RFD-01 by choosing the category as “Excess Payment of Tax if any

12. Other recent updates

• Special GST compliance procedure notified via notification 11/2020 for the companies during the CIRP period further clarified in GST notification 39/2020 and Circular 138/08/2020
• Aadhaar authentication becomes important for certain type of persons getting registered under GST.

Some areas left open for relaxations (no relaxations provided)

• Issuing Invoices as per other provisions of GST Act and Rules
• Applying for registration on becoming liable to be registered (including for casual taxable person and Non-Resident Taxable Person)
• Opting out of Composition Scheme on crossing the threshold of composition scheme
• Late fees in case of following

a. GSTR 10 – Final Return (in case of cancellation of registration)
b. Delay in filing annual return for FY 17-18 and older period returns

• Liability of Partner of firm to pay tax
• Detention, Seizure and Release of goods and conveyance in transit including inspection of goods in movement
• EWB Generation status to be blocked if GSTR 3B not filed on time for Feb, March and April (Relief only on interest and late fees)

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