GST return filing date extended
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COVID-19: GST Return filing During Lockdown

Due to the COVID-19 outbreak nationwide lockdown is announced and all the companies are being encouraged to do work from home. This is putting challenges before the startup businesses and some bigger corporations too. Employees of the company who are responsible for filing of tax and GST returns are now unable to access their office systems from their home this is a big challenge before them and the company.

Though the safety of the employees of the company is primary for the company there are challenges before them to comply with the norms of Govt. The challenge is particularly high before the new business start-ups because they have limited exposure to technology.

Complicated Process And Limited Resources 

The GST mechanism to file a return is very much complicated because it involves consolidating all transactions and bills from various departments, and after that validating and recording them into accounting systems, and estimating the final amount of taxes due from sales, and much more. And it becomes very difficult because this happens in the last week of the month and therefore difficult to manage for the company in such a condition of lockdown.

In Small businesses, there is difficulty to provide work from home to its employees because of limited resources available with them, and therefore tax staff has to come to the office to comply. Some workers may be required to work for a short period of time for a smooth running business process and products.

There are It companies in a startup business that helps their clients in smoothly comply by providing cloud-based software which can be accessed anytime and from anywhere. Once the data is entered in the software then it automatically generates valuable reports and provides their reconciliations.

It is the ending of the financial year and preparation of final accounts is becomes necessary for the staff therefore they could be worried about this. But the government is also providing relief to comply with relevant compliances. Below are some reliefs that are provided by the govt in GST compliances.

GST Due Date Extension

The government has extended the due dates of filing of GST returns by the various taxpayers for the months of February to April 2020.

Detailed information about the due dates is as follows:

  1. Registered persons with an aggregate turnover of up to Rs. 5 crore can file their GST returns due in the month of March, April and May 2020 till the last week of June 2020. No late fees or penalty is payable.
  2. Registered persons with an aggregate turnover of more than Rs. 5 crores can file their GST returns due in the month of March, April and May 2020 till the last week of June 2020. Interest @ 9% will be levied instead of 18%, but no late fees or penalty will be levied.
  3. Due date of 4th quarter i.e Jan-Mar 2020 for composition dealer is extended till 30 June. Also, the due date for opting composition scheme is also extended till the last weak of June 2020.
  4. The due date for filing Annual for FY 18-19 which was 31.03.2020 is also extended till 30.06.2020.

Also Read : Companies Fresh Start Scheme, 2020

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