The government has extended the deadline for filing annual goods and service
tax (GST) return and reconciliation statements for FY20 till March-end, from
existing date of February 28.
"In view of the difficulties expressed by the taxpayers in meeting this time
limit, government has decided to further extend the due date for furnishing of
GSTR-9 and GSTR-9C for the financial year 2019-20 to 31.03.2021 with the
approval of Election Commission of India," the Central Board of Indirect Taxes
and Customs (CBIC) said Sunday.
Experts termed the extension as a positive step for industry grappling with
continuous compliance requirements even as it stumbles to normalcy amid
Covid 19 pandemic. "This extension on the last day provides the much needed
relief to the industry and would allow them to comply with the statutory
obligation within the extended timeline," said Abhishek Jain, tax partner at
EY.
The Union Budget FY22 has proposed to do away with requirement of
furnishing the GSTR audit report in the form GSTR-9C. Industry had sought
an extension of three months for filing annual GST return or GSTR 9 and
reconciliation or audit statements, called GSTR 9C forms, for FY 20, ET had
reported last week.
The extension till May 31 had been sought due to lack of time for industry to
comply since the utility for filling returns was enabled in December last year.
Industry executives said that they have been working with limited manpower
even after lockdown restrictions were lifted, even as businesses were trying to
revive and strengthen operations. “Because of lesser time and manpower
available for reconciliation and diligence, support in form of relaxation of
timelines for compliances (is needed),” they said in the representation.
In the absence of an extension, taxpayers may fail to furnish the requisite forms
and may have to bear hefty penalties which would be an additional burden
amid challenging times for the pandemic-hit businesses, the industry had said
in a representation to the Board.
Source: The Economic Times, India Monday, 01 March 2021