COVID-19: CBIC Further Extends the Timelines for GST Compliance

The Central Board of Indirect Taxes and Customs (CBIC) has extended the due dates for Goods and Services Tax (GST) compliance due to the COVID-19 crisis. Now, the CBIC further extended the timelines for GST compliance as the countrywide lockdown extended till 17th May 2020. This article covers the notifications 38/2020, 39/2020, 40/2020, 41/2020 and 42/2020, which were dated 05th May 2020.

GSTR-9 Further Extended to 30 Septermber 2020

Earlier, the due date for filing GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) for FY 2018-19 was extended to 30th June 2020. Now, the CBIC further extended the due date to 30th September 2020.

Further Extention of E-Way Bill Validity

Previously, the e-way bill validity was extended to 30th April 2020. Now, the CBIC further extended the validity until 31st May 2020 for an e-way bill generated on or before 24th March 2020. The extended time limit is available when the e-way bill validity expires between 20th March 2020 and 15th April 2020.

Companies Can File GSTR-3B Using EVC

The Digital Signature Certificate (DSC) of one director is required mandatorily for filing GSTR-3B of a company. Usually, the DSC is valid for one or two years, and it has to be renewed for further usage. However, during this COVID-19 lockdown, companies may face hardships for renewal of the expired DSC.

To mitigate the issues, the CBIC allowed companies to file GSTR-3B returns using the Electronic Verification Code (EVC) option. In this option, the taxpayer has to submit the One Time Password (OTP) received on his registered mobile number. This EVC option is available from 21st April 2020 to 30th June 2020.

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Nil GSTR-3B Filing Through SMS

In the previous GST Council meeting, it was decided to introduce the SMS filing facility for Nil return filers. To implement the decision taken in the Council, the CBIC allows the taxpayers who want to file a Nil GSTR-3B return by just sending an SMS from the registered mobile number and verify using an OTP. However, the rule shall apply from a date that is yet to be notified.

GSTR-3B Due Date Extended for UT’s – Jammu & Kashmir, Ladakh

The CBIC further extended the deadline for filing GSTR-3B in the Union Territory (UT) of Jammu & Kashmir and Ladakh as follows:

New Rules for Corporate Insolvency Resolution Process

In this notification, the CBIC introduced new rules for GST registration during Corporate Insolvency Resolution Process. The Interim Resolution Professional (IRP) must obtain separate GST registration in every state/Union Territory, where the corporate debtor was earlier registered. The IRP should get GST registration within thirty days of his appointment or by 30th June 2020.

The CBIC notified a special procedure to be followed by IRP regarding GST registration, GST returns, GST Input Tax Credit (ITC), etc. Now, the notification No: 39/2020 states that the special procedure earlier notified shall not apply to corporate debtors, those who have already filed GSTR-1 and GSTR-3B returns for all the tax periods before the appointment of the IRP.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in