GST Filing Date For FY2020 Again Extended Till This Date: Find The Reason Why?
The Centre has extended the filing date for GST returns for the second time since Dec 31st. The first extension was made upto Feb 28. The new extension has now been made till Mar 31.
GST is an indirect tax that has replaced and become an umbrella term for subcomponents that were calculated independently earlier such as excise duty, services tax, and VAT. It came into effect on July 1, 2017 after the GST Act was passed on Mar 29, 2017.
Central Board of Indirect Taxes and Customs (CBIC) made the announcement on Sunday in light of taxpayers expressing difficulties in complying within the previous time schedule
The extension applies to furnishing of GSTR-9 and GSTR-9C for FY19-20.
The total of all transactions comprising all outward and inward goods either supplied or received under different tax heads (eg. CGST, SGST and IGST) are detailed in this annual return that is filed every year.
This is to be compulsorily furnished by those with aggregate annual income of over Rs 2 crores
It is a reconciliation statement between GSTR-9 as aforementioned and annual financial statement as audited.
This is to be submitted by registered individuals having turnover of over Rs 5 crores
A Relief for Taxpayers
The extension is being seen as a relief for tax professionals to be able to complete their annual filings.
Since utility for filing returns was enabled only last December, compliance became a challenge due to shortage of time.
The challenge of inadequate manpower was also felt in the light of the pandemic and the ensuing mass lay-offs.
So it was concluded by concerned bodies that an extension was sorely needed because of lack of time and manpower required for performance of reconciliation and diligence.
Had the extension not been granted, taxpayers would have had to incur heavy penalties due to failure of furnishing the required returns.
This could have been the straw breaking the proverbial camel’s back for an industry already grappling with economic and financial challenges for those hit by the pandemic, among other things.