Extension of Due Dates for Filing GST Annual Return by CBIC

Recently, CBIC^[1] or the Central Board of Indirect Taxes and Customs by way of a Press Release, dated 09.10.2020, has extended due dates for filing GST Annual Return, i.e., GSTR 9 and GSTR 9C for the F.Y. 2018-2019 till 31.12.2020.

Earlier, the due dates for filing GSTR 9 (Annual Return) and GSTR 9C (Reconciliation Statement) for the Financial Year 2018 – 2019 was 31.10.2020.

In this blog, we will discuss the Extension of Due Dates for Filing GST Return Annually by CBIC.

Concept of Form GSTR 9

The term Form GSTR 9 denotes an annual return that is required to be filed by taxpayers on yearly basis. Further, the term taxpayer includes every such person or entity that has obtained GST registration under the provisions of the GST Act.

Form GSTR 9 specifically deals with the transactions relating to inward and outward supplies made under various tax heads.

Also, the taxpayers who are earning an annual business turnover of Rs 20 crore or more needs to compulsorily file an annual return in Form GSTR 9 with the authorities.

Concept of Form GSTR 9C

The term Form GSTR 9C denotes a statement of reconciliation between the audited annual financial statement and Form GSTR 9. Further, the taxpayers who are earning an annual business turnover of Rs 5 crore needs to file this reconciliation statement after getting the accounts audited by a practising CA (Chartered Accountant) or Cost Accountant.

Further, the turnover limit of Rs 2 crore was increased to Rs 5 crore by CBIC on 23.03.2020.

Reason Behind the Extension of Due Dates for Filing GST Returns

The decision for the extension of Due Dates beyond 31.10.2020 was taken because due to the COVID – 19 pandemic, the normal operations and working of the businesses in several parts of the country have not fully resumed.

Also, many representations were made to the authorities that it is still not possible to resume business operations in several parts of the country due to COVID – 19 pandemic.

Impact of Extension on Indian Economy

According to views expressed by Mr Abhishek Jain, Partner at Ernst and Young, the extension will provide the much-needed relief to both tax practitioners and industry. “Due to the continuing epidemic and employees taking unplanned leaves, the extension will definitely give a significant relief to both chartered accountants and businesses.”

However, Mr Rajat Mohan, Senior Partner at AMRG Associates has expressed a contrasting viewpoint. According to him, the extension will definitely have a ripple effect on the Annual Compliances of the Financial Year 2019 – 2020, as the last for such compliances is 21.12.2020 as well.

Conclusion

In a nutshell, the main reason behind the extension of the due dates for filing GSTR 9 and GSTR 9C was to provide relief to the industry, as due to the COVID – 19 pandemic, the normal operations and working of the businesses in several parts of the country have not fully resumed.

For any further detail, visit Swarit Advisors, we have a team of experts who will assist you with both the process of GST Registration and GST Annual Return.

Also, Read: Key Highlights of Atma Nirbhar Bharat Package 3.0

Official Press Release