Relief to taxpayers for e-way bill and ITC during lockdown

Arjun (Fictional Character): Krishna, considering the impact of Coronavirus situation in the country, various taxpayers are facing challenges in meeting the GST compliances. The government has thus provided various relief measures to curb the issues faced by taxpayers as discussed in the previous article as per press release. What additional relief measures has the government announced on 03.4.2020 by amending law?

Krishna (Fictional Character): Arjuna, circulars and notifications regarding the relief provided to taxpayers under GST have been notified on 3rd April 2020. Various issues and challenges faced by the taxpayers in meeting GST compliances have now been addressed. Further, some additional relief has also been notified by the government for easing compliances under GST in the current situation. Let us discuss new relief given to GST taxpayer in detail.

Arjun (Fictional Character): Krishna, what additional relief has the government provided for furnishing outward details in GSTR-1?

Krishna (Fictional Character): Arjuna, the government has provided relief by waiving the late fees for taxpayers who fail to furnish the details of outward supplies for the months of March, April and May 2020, and for the quarter ending 31st March 2020 in Form GSTR-1 within its respective due date, but furnishes the details on or before 30th June, 2020.

Arjun (Fictional Character): Krishna, what additional relief has the government provided for e-way bills which have expired during the lockdown period?

Krishna (Fictional Character): Arjuna, considering the issues faced by taxpayers as per section 168A of the CGST Act, where the validity of an e-way bill expires during the period between 20th March to 15th April, 2020; the validity of such e-way bills have been extended till 30th April, 2020.

Arjun (Fictional Character): Krishna, what additional and major relief has the government provided for restriction of ITC under rule 36(4) of the CGST rules?

Krishna (Fictional Character): Arjuna, as per rule 36(4) of the CGST rules, a taxpayer filing GSTR-3B can claim provisional ITC only to the extent of 10% of the eligible credit available in GSTR-2A. For providing relief under the said condition in lockdown period, the government has allowed taxpayer to allow the condition cumulatively for the months of February 2020 to August 2020, and that such cumulative adjustment shall be furnished in the return GSTR-3B of September 2020.  This is most significant additional relief given to taxpayers.

Arjun (Fictional Character): Krishna, what relief has the government provided for furnishing statement in Form GSTR-7 & Form GSTR-8?

Krishna (Fictional Character): Arjuna, the relief provided is as under:

The taxpayers who are required to deduct tax at source as per section 51 of the CGST Act, 2017, have now been allowed to furnish the statement in Form GSTR-7 for the months of March 2020 to May 2020, on or before 30th June 2020.

The taxpayers who are required to collect tax at source as per section 52 of the CGST Act, 2017, have now been allowed to furnish the statement in Form GSTR-8 for the months of March 2020 to May 2020, on or before 30th June 2020.

Arjun (Fictional Character): Krishna, what relief has the government provided for taxpayers who have opted to pay tax under Composition scheme?

Krishna (Fictional Character): Arjuna, the taxpayers those have opted to pay tax under Composition scheme are now allowed to:

Furnish the statement of details of payment of self-assessment tax in Form GST CMP-08 by 7th July 2020, for the quarter of January 2020 to March 2020.

Further, they can furnish the return in form GSTR-4 for FY 2019-20 by 15th July 2020.

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

Krishna (Fictional Character): Arjuna, Taxpayer must also note that the due dates for filing GSTR-3B has not been extended, but the interest and late fees for late filing has been notified. The taxpayer shall study the circular and notifications issued by the government on 3rd April 2020 carefully and evaluate the relief provided to them.