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Arjun (Fictional Character): Krishna, tax departments have gifted taxpayers with their Dussehra gift, in form of date extension, what are the new due dates for GSTR-9 & 9C?

Krishna(Fictional Character): Arjuna, around 53 GST and trade associations had submitted representations as well as filed a writ petition for an extension of due dates, which has now been considered. The due dates for GSTR-9 & GSTR-9C of FY 2018-19 which was earlier 31st October 2020, now have been extended to 31st December 2020. This is a Dussehra gift to GST taxpayers.

Arjun (Fictional Character): Krishna, what is the Dussehra gift for taxpayers under Income Tax?

Dussehra gift of date extension, but what about Diwali gift of ITC

Krishna(Fictional Character): Arjuna, the Income-tax department has also decided to gift their taxpayers with a due date extension. The due dates for Income tax Returns of Audited assessee for FY 2019-20, which was currently 31st October 2020, is now extended to 31st January 2021. Now, both the taxpayers under GST as well as Income tax can celebrate the festival season with relief due to corona crises.

Arjun (Fictional Character): Krishna, we discussed the Dussehra gifts, but what are the taxpayers expecting in their Diwali gifts from GST Tax departments?

Krishna(Fictional Character): Arjuna, due to COVID-19 & lockdown situations, many taxpayers have faced issues in claiming ITC for many reasons. In the representation made, there is much relief of ITC which is sought but till not given by the GST Department. Few of them are as follows:

  1. The time limit for claiming Input Tax credit u/s 16 of CGST Act, 2017 for the financial year 2019-20 to be extended from existing due dates (i.e. due dates for September’s return) to 31st March 2021.
  2. Further, it has been recommended to allow the ITC under section 16, even if the same is not reflected in the supplier’s GSTR-2A, only if the Recipient or Buyer is in possession of appropriate documentary evidences so that the recipient will not have to reverse such ITC.
  3. The time limit for claiming ITC as per rule 36(4), which was to be applied cumulatively for the months of February 2020 to August 2020, to be extended till March 2021 for claiming ITC.

Had this ITC relief been given it would amount to a Diwali gift to GST Taxpayers.

Arjun (Fictional Character): Krishna, what should the taxpayer learn from this?

Krishna(Fictional Character): Arjuna, after the extension of due dates, the taxpayers can take a deep breath of sigh, and relax as the burden of completing Audits has been lightened. After a year of the great struggle against COVID-19, now the taxpayers can celebrate the festive season with some enthusiasm. Still, a lot of taxpayers are financially worried, hope this Dusshara brings happiness to them.



Published by

CA Umesh Sharma
Category GST   Report

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