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GST ease amid Covid 19: E-way bill validity extended, 10% ITC deferred

GST ease amid Covid 19: E-way bill validity extended, 10% ITC deferred

The government extended the validity of e-way bills till April 30, that were set to expire between March 20 and April 15, giving a big relief to industry grappling with issues of supplies and goods stuck in transit amid the nationwide lockdown due to Covid 19.

“Where an e-way bill has been generated and its period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th day of April, 2020,” the finance ministry said in a notification Friday.

The finance ministry has also deferred the application of 10% restriction for availing input tax credit for February, to August, 2020 and rolling over the cumulative applicability to the month of September, 2020, giving the industry a seven-month window that will ease out cash flows, experts said.

“Government has gone all out in of support the industry by deferring the application of 10% credit restriction… This step from government would ease out the cash flows of the entire community of over 12 million taxpayers,” said Rajat Mohan, senior partner at AMRG Associates.

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