Ease of Doing Business for MSMEs: Even as the MSME neighborhood continues to urge the government to extend GST payment and return filing deadlines by two-3 months, the Ministry of Finance has presented taxpayers a late charge waiver for filing GSTR-3B month-to-month returns for March and April and decreased interest prices for late payments. While this would reprieve micro and tiny enterprises (MSEs) temporarily, there could be a require for additional relaxation as Covid and its effect would be lengthy drawn and take more than a although to settle down, according to authorities.
“They (government) have to look into the tonality. It is not only about the condonation of delay but the removal of the root cause by delaying the due date itself. Currently, due to the second wave pandemic, businesses are in jeopardy, and in several places, employees are not being able to make it. I think the time has come to push the dates to give sufficient leverage to MSEs,” Manguirish Pai Raikar, Chairman, National Council for MSMEs, Assocham told TheSpuzz Online.
The Central Board of Indirect Taxes and Customs (CBIC) on Saturday had issued a notification announcing the extension for filing the month-to-month GSTR-3B return by 15 days for taxpayers with a turnover of more than Rs 5 crore along with a decrease 9 per cent tax price for the 15 days. For taxpayers getting up to Rs 5 crore in turnover in the preceding economic year, a 30-day period has been offered to file their 3B returns for March and April from their due date devoid of a late charge. The interest price for them would be nil for the initially 15 days and 9 per cent right after that. Post 30 days, an 18 per cent price would be levied. “This notification shall be deemed to have come into force with effect from the 18th day of April 2021,” CBIC mentioned.
“Happy that the government made the right decision which will provide relief to small businesses, many of which are currently shut due to lockdowns and curfews. If the lockdowns and restrictions persist past May 24 in different parts of India preventing small businesses from filing, we hope that the government will provide another extension till June 30,” Sachin Taparia, Chairman, LocalCircles told TheSpuzz Online. According to a current LocalCircles survey comprising of 2,370 startups, MSMEs, traders, and service providers, 80 per cent respondents had recommended an extension of GST payment and return filing devoid of penalty.
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CBIC also announced the extension of the due date for GSTR-1 April sales return filing till May 26 from the actual due date of May 11. “The concessions permitting belated compliances will indeed ease the bandwidth issues for MSMEs. However, a lot more needs to be done for improving liquidity flow by directing credit flow to them through banks and NBFCs and government bodies themselves making timely payments or advance payments to MSME vendors,” Suraj Malik, Partner – Transaction Tax, BDO India told TheSpuzz Online. “Since the relief is for a limited period and Covid is rising each day, there has to be an extension till June 30,” Praveen Khandelwal, Secretary-General, CAIT told TheSpuzz Online.
As of April 13, 2021, the quantity of instances filed in the MSE Facilitation Councils (MSEFCs) by MSEs had almost doubled more than the previous 12 months. From 13,091 delayed-payment instances filed against the respective central ministry, division, CPSE, or state government, as of April 27, 2020, considering that the launch of delayed payment monitoring technique MSME Samadhaan on October 30, 2017, the quantity had jumped 96 per cent to 25,705 applications as of April 13, 2021, according to the government information. The quantity payable in the quantity of instances filed also enhanced 125 per cent from Rs 4,112 crore to Rs 9,250 crore in the course of the mentioned period, information from MSME Samadhaan showed. The quantity of resolved instances has also more than doubled from 3,145 involving Rs 598 crore to 6,643 involving Rs 1,075 crore.