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GST relief 2.0: Govt can provide relaxations with respect to certain measures under GST

GST relief 2.0: Govt can provide relaxations with respect to certain measures under GST

The government has brought an ordinance to extend due dates for compliances under various tax laws. In CGST Act, new Section 168A empowers it to extend the time-limit specified or prescribed in respect of actions which cannot be completed or complied with due to force majeure. Epidemic has been included in the new definition of force majeure. Notifications have been issued relaxing due dates for filing returns, granting interest waiver, reduced interest for delayed payment and waiver of late fee. A second round of GST relief is due.

The time for payment of tax can be extended, or payment in instalments can be allowed as per Section 80 of CGST Act. A maximum of 24 instalments can be permitted. For such payment, interest will be applicable. CBIC may issue a circular highlighting the provision. Commissioners may be instructed to take a liberal view for permitting instalments. No amendment to law is required, and simple instruction with wider publicity is sufficient. Reduced rate of interest can be provided in such cases.

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