Covid effect on MSMEs: Even as the government had earlier this month provided taxpayers a late charge waiver for filing GSTR-3B month-to-month returns for March and April and decreased interest prices for late payments, a majority of smaller organizations, startups, and traders are nonetheless looking for no penalty and interest relaxations on GST late payment and return filing till June 30, 2021. Small organizations have been urging for the deadline extension for GST payments as most units have suffered Covid effect which includes short-term shutdowns or negligible operations. A majority of micro entrepreneurs and traders nonetheless work on a paper-based strategy exactly where manual interfacing involving them and their accountant requires location to finalise GST information and thereafter an electronic payment is made involving the enterprise owner and the accountant following which the latter pays the final GST to the government.
“GST payment deadline falls on 24th of every month. A majority of small businesses have been in shutdown mode across India since early or mid-April and for many of them filing and paying GST requires in-person coordination with their accountant which hasn’t been possible due to lockdown in most states across India,” Sachin Taparia, Founder & Chairman, LocalCircles told TheSpuzz Online.
Also study: Lack of succession arranging greatest lengthy-term threat to Indian MSMEs, say experts
Based on a survey by the platform of more than 2,400 organizations situated in 122 districts, 89 per cent respondents wanted no penalty and interest relaxations on GST late payment and return filing till June 30, 2021. By extending this date, the government will most likely have to postpone 20 per cent of collection till June but it will have a positive effect on 80 per cent of organizations that are presently seeing money flow challenges and have a higher degree of future uncertainty, Taparia added. LocalCircles had escalated the will need for relaxation for March GST payment and return to the government on April 23, 2021, and May 1, 2021.
The Central Board of Indirect Taxes and Customs (CBIC) had on May 1 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 reduced 9 per cent tax price for the 15 days. For taxpayers possessing up to Rs 5 crore in turnover in the preceding monetary year, a 30-day period was offered to file their 3B returns for March and April from their due date without the need of a late charge. CBIC also announced the extension of the due date for GSTR-1 April sales returns filing till May 26 from the actual due date of May 11.