Indirect Tax Announcements and Impact

Compliance PeriodComplianceCurrent DateExtension Date
February, March, April , May 2020GST Return and Composition ReturnsVarious Dates30th June 2020
FY 2018-19GST Annual Return31st March 202030th June 2020
FY 2019-20GST Payment for Quarter ending 31st March 20 and filing of return by Composition Dealers  for FY 2019-20Various Dates30th June 2020
FY 2020-21Option for Opting Composition Scheme31st March 202030th June 2020
Any YearAll notices, appeal, applications, Return, Report, Statement required to be submitted under GST LawVarious Dates (20th March 2020 to 29th June 2020)30th June 2020
Sabka Viswas SchemeSabka Viswas SchemeCase to Case basis30th June 2020

Notification 30/2020-Central Tax, dt. 03-04-2020

ParticularsDue date
Intimation to pay tax Under composition scheme (form GST CMP-02) for F.Y 2020-21.30/06/2020
For registered person who earlier availed ITC (Input Tax Credit) and now opts for Composition scheme, a declaration for intimation of ITC reversal (form- ITC -03) is to be filed with the Department.31/07/2020
Condition under rule 36(4) shall apply cumulatively for the period February, March, April, May, June, July and August, 2020 and the return in FORM GSTR-3B for the tax period September, 2020.N.A

Notification 31/2020-Central Tax, dt. 03-04-2020

Seeks to provide relief by conditional lowering of interest rate for persons, who fails to furnish GSTR-3B along with payment of tax for tax periods of February, 2020 to April, 2020.

Notification 32/2020-Central Tax, dt. 03-04-2020

Seeks to provide relief by conditional waiver of late fee for delay in furnishing returns in FORM GSTR-3B for tax periods of February, 2020 to April, 2020. If return are filed on or before the specific date.

Return filed on or before the respective months :

Turnover (in crores)Interest RateLate Fees (INR)February 20March 20April 20
0 < 1.50%030/06/202003/07/202006/07/2020
1.5< 50%029/06/202029/06/202030/06/2020
>5 (First 15 days)0%024/06/202024/06/202024/06/2020
>5 (After 15 days)9%024/06/202024/06/202024/06/2020

Note :

Due dates for GSTR 3B for the month of February 20,March 20 and April 20 are not been extended however interest @9% will be applicable from April 04,2020,May 05,2020 and June 06,2020 respectively.

Notification  33/2020-Central Tax, dt. 03-04-2020

ParticularsDue date
Seeks to provide relief by conditional waiver of late fee for delay in furnishing outward statement in FORM GSTR-1 for tax periods of March ‘20, April’20 to May’20.30/06/2020

Notification  34/2020-Central Tax, dt. 03-04-2020

ParticularsDue date
Seeks to extend due date of furnishing FORM GST CMP-08 for the quarter ending March, 2020 i.e. January 2020-March 2020.07/07/2020
Seeks to extend filing of Form- GSTR-4 for FY 2020-2115/07/2020

Note:

1.Form GST CMP-08-Statement of details of payment of self assessed tax.

2.Form-GSTR-4 -Quarterly return form for those taxpayers who have opted to go for the GST Composition Scheme.

Notification 35/2020-Central Tax, dt. 03-04-2020

ParticularsDue date
Seeks to extend due date of completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called which falls during the period from “20.03.2020 to 29.06.2020”. The said notification also extends to provisions of section 39(3),(4) and (5) i.e. 39(3)-TDS 39(4)-Input Service Distributor. 39(5)-Non-resident taxable person.30/06/2020
If E-way bill has been generated under rule 138 and period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020 (Lockdown period).Validity of such e-way bills deemed to be extended till 30/04/2020.

Notification 36/2020-Central Tax, dt. 03-04-2020

ParticularsDue date
Seeks to extend due date for furnishing FORM GSTR-3B for supply made in the month of May, 2020.
1.Turnover more than 5Cr27/06/2020
2.Turnover less than 5Cr-Statewise as follows:
Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep.12/07/2020
Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi.14/07/2020

FAQ’s : Indirect Tax Announcements

FAQResponse
Whether due date of furnishing FORM GSTR-3B for the months of February, March and April, 2020 has been extended ?The due dates for furnishing FORM GSTR-3B for the months of February, March and April, 2020 has not been extended through any of the notifications referred in para 2 above. Conditional relief in interest and late fees have been granted
Whether restriction under rule 36(4) of the CGST Rules would apply during the lockdown period?The said restriction is been lifted for the returns for the months of February, March, April, May, June, July and August, 2020, but that the said condition shall apply cumulatively for the said period and that the return in FORM GSTR-3B for the tax period of September, 2020
What will be the status of e-way bills which have expired during the lockdown periodThe validity of an e-way bill generated which expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period of such e-way bill has been extended till the 30th day of April, 2020.
The time limit for compliance of some of the provisions of the CGST Act is falling during the lock-down period announced by the Government. What should the taxpayer do?Except for few provisions covered in exclusion clause, any time limit for completion or compliance of any action which falls during the period from the 20/03/20 till 29/06/20 has been extended to 30th day of June, 2020.

Regulatory : MCA, IBC and SEBI

Compliance PeriodCompliance              Current Date       Extension Date
FY 2020-202120% of deposit reserve to be created for deposits maturing in FY 20-2130th April 202030th June 2020
FY 2020-2021Requirement of Investment in Specified securities equivalent to 15% of debentures maturing in the FY 20-2130th April 202030th June 2020
For Next two QuartersGap between two Board Meetings may exceed 120 days but shall not exceed 180 days. Relaxation for Video Conferencing Meeting also provided.Various DatesExtended by 60 days
2019-2020Requirement of holding of one Independent Directors Meeting has been dispensed with for FY 2019-20NANA
2019-2020Requirement of one Resident Director has been dispensed with for FY 2019-20NANA
NAAdditional period of 180 days granted for filing of declaration of commencement of business by newly incorporated companies180 days from the date of incorporationAdditional 180 days has been granted

ADDITIONAL STEPS TAKEN BY MCA:

•Clarification by MCA –  Spending of CSR funds for Covid 19 is eligible CSR activity

•MCA has introduced voluntary submission of Company Affirmation of Readiness towards COVID-19 by Companies and LLPs, this submission is voluntary in nature and does not attract any kind of fees/ additional fees

MORATORIUM  PERIOD PROVIDED BY MCA FOR FILING BELATED RETURNS:

Companies and LLPs can file belated Return including annual return and balance sheet without additional fees between 1st April 2020 and 30th September 2020, Benefits of completion of filing of belated returns are twofold as mentioned below:

There shall be no additional fees charged for delayed filings

Immunity shall be granted from launching of prosecution or proceeding

Non Applicability – The Scheme shall not be applicable in following cases

Companies – Companies Fresh Start Scheme, 2020LLPs- LLP Settlement Scheme 2020
Company Specific: §Actions by the designated authority have been initiated against the final notice of Strike-Off (U/s 248 of the Companies Act, 2013) and Companies that have applied for strike-off §Amalgamated Companies, Companies that have applied for obtaining Dormant Status( U/s
455 of the Companies Act, 2013), Vanishing Companies
E Form Specific:
•Increase in Authorized Capital i.e. Form SH-7 •Charge Related Documents i.e. Form CHG-1, Form CHG-4, Form CHG-8, Form CHG-9
•LLPs that have applied for strike-off in E-Form 24

Procedure for availing benefits of the Scheme

Companies – CFSS 2020LLPs- LLP Settlement Scheme 2020
1)Filing of Return/ Eform with normal fees ● 2)Filing of E-Form “CFSS 2020” without any fees with ROCs through MCA portal to avail immunity under this scheme within 6 months from the closure of this schemeNIL

Insolvency and Bankruptcy Code

  • For matters relating to insolvency and liquidation of corporate debtors, the minimum amount of default has been increased from INR 1,00,000 to INR 1,00,00,000.
  • The above is subject to further evaluation of the situation by 30th April 2020, post which the government may consider suspending Section 7,9 and 10 of IBC for 6 (six) months

CARO 2020

  • Applicability of CARO (Companies Auditors Report Order) 2020, moved to FY 2020-2021 (and not FY 2019-20)

SEBI Relaxations

ComplianceCurrent DateExtension Date
Closure of Trading Window01st April 2020No Further Extension
Financial Result under Regulation 33 of SEBI LODR30th May 202030th June 2020
Quarterly Compliance Report on Corporate Governance under regulation 27(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations (“SEBI LODR”)15th April 202015th May 2020
Statement of Investor Complaints under regulation 13(3) of SEBI LODR21st April 202015th May 2020
Shareholding Pattern under regulation 31 of SEBI LODR21st April 202015th May 2020
Reconciliation of Share Capital under regulation 55A of SEBI (Depositories and Participants) Regulations30th April 2020No Further Extension
Compliance Certificate under Regulation 7(3) of SEBI LODR30th April 202031st May 2020
Compliance Certificate by Practicing Company Secretary under Regulation 40(9) of SEBI LODR30th April 202031st May 2020
Annual Secretarial Compliance Report under regulation 24A of SEBI LODR30th May 202030th June 2020
Disclosures of Related Party Transactions under regulation 23(9) of SEBI LODRWithin 30 days of publication of financial statementWithin 30 days of publication of financial statement
Disclosures under Regulation 30(1), 30(2) and 31(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations,7 working days from the end of FY7 working days from the end of 01st June 2020

FAQ’s : Regulatory : MCA, IBC and SEBI

FAQResponse
Can the benefit of Scheme  be availed by struck off CompaniesNo. However, Struck Off Companies can file petition for revival of Company with NCLT and if the Company is revived before 30th September 2020, the Company can avail benefit of the scheme
What if the Company fails to file Form CFSS within timeline prescribed  i.e. by 30th March 2021In this scenario, Immunity will not be granted and such Companies may be subjected to payment of additional fees, penalty, and prosecution, if any, as may have been waived
Can disqualification from directorship be cured by the schemeNo. Disqualification of Director (arising from being a director in struck off Companies for default in filing of Annual Returns and Financials for 3 consecutive Financial Years) cannot be cured by these scheme
Can the benefit of the scheme be availed by Directors whose DIN have been deactivated or by Active Non Compliant Company•Yes, Directors whose DIN has been deactivated because of non filing of DIR 3 KYC can avail benefit of this scheme i.e. they can file DIR 3 KYC without paying Penalty of Rs. 5000/- •Yes, Active non compliant Companies can avail benefit of this scheme i.e. they can file Form Active without paying Penalty of Rs. 10000/-
What are the Options available for Inactive CompaniesAfter filing of belated returns, Inactive Companies have below mentioned two options: •Application for obtaining status of Dormant Company •Application for striking off of the Company

RBI’s Developmental and Regulatory Policy

BenefitsParticulars
Reduction in  Rates§Reduction in Repo Rate by 75 bps to 4.40% § §Reduction in Reverse Repo Rate by 90 bps to 4%
Measures to Expand Liquidity§TLTRO – Auction of Targeted Long Term Repo Operation up to 3 year tenor for total amount of INR 1 lakhs crore at floating rate linked to policy repo rate. § §Cash Reserve Ratio (CRR) to be reduced of all banks by 100 bps to 3%. § §Increase in accommodation of Marginal Standing Facility (MSF) from 2% to 3% from immediate effect applicable up to June 30, 2020.
Relaxation in realisation of export proceeds§Time period for realisation and repatriation of exports done till 31st July extended to 15 months as against existing period 9 months
Relief to States and Union Terrotories§30% increase in limits of way and means advances to States / UT’s to tide over current crisis till 30th September 2020

The above measures will lead to injection of liquidity of INR 3.74 lakh crore in the system. (3.2% of GDP)

BenefitsParticulars
Rescheduling of Payments – Term Loan and Working Capital FacilitiesAs per the regulatory package announced by the RBI the following borrowing facilities will be eligible for a moratorium of 3 months for payment of their liabilities § §Instalments of Term loan falling due between 01st March 2020 to 31st May 2020. §Interest applied on working capital facilities between 1st March 2020 to 31st May 2020. As per the circular Instalments will include the following payments falling due from 01st March 2020 to 31st May 2020 §Principal and/or interest component §Bullet repayments §Equated Monthly instalments §Credit Card Dues
Easing of Working Capital FinanceThe lending institution on being satisfying that the borrower is facing stress on account of economic fallout of the pandemic may recalculate the drawing power by reducing the margins and/or reassessing the working capital cycle. The relief shall be available up to 31st May 2020
Asset Classification Norms§The asset classification to which relief has been given as per this circular shall be determined on the basis of revised due dates and revised repayment schedule. §The moratorium/deferment/recalculation of the “drawing power” will not be treated as concession or change in terms and conditions of loan agreements due to financial difficulty. §The rescheduling of payments,  including interest will not qualify as a default for the purpose of reporting to Credit Information Companies (CIC’s) by the lending institution. §Thus the borrower asset classification will not be downgraded due to any change in their terms as per this circular.

FAQ’s : RBI’s Developmental and Regulatory Policy

FAQResponse
Whether dues of credit card are eligible for moratorium as per the RBI scheme?Yes the Deferment of 3 months is applicable to credit card dues.
Will there be any interest levied for the moratorium period on customer’s credit card outstanding and loan on credit cards?Yes, interest will be levied as per the contracted rate on the card. Opting for 3 months moratorium allows customers to defer their Credit Card outstanding.
Whether the moratorium is voluntary or compulsory?The deferment of the instalment and interest is voluntary and it is at the option of the borrower to avail the same or not.
Is there any penalty or charges levied in case a borrower opt for moratorium?There are no charges or penalty as such. Normal interest will be charged on the outstanding amount of the loan.
Will the moratorium facility affect customer’s Credit Rating?No. Opting for the EMI moratorium will not affect any customers Credit Rating or Score

Labour Law Announcements

LawCompliance
EPF•GOI will pay the EPF Contribution both of the Employer and Employee (Totaling to 24%) for the next 3 months
•only for organizations having upto 100 employees and
•for employees out of which 90% should be earning less than INR 15,000 per month.
EPFThe Employees’s Provident Funds (Amendment) Scheme, 2020
•on application by any member employed in any establishment located in an area declared as affected by outbreak of any epidemic or pandemic,
•permit a non-refundable advance from their provident fund account not exceeding:
(a) the basic wages and DA of that member for 3 months; or
(b) up to 75% of the amount standing to their credit in the fund, whichever is less
LawComplianceCurrent DateExtension Date
ESIESI Contribution filing and payment for the month of •February 2020 •March2020•15th March, 2020
•15th April, 2020
•15th April, 2020 •15th May, 2020
ESIESI Contribution filing for period – April 2019 to September 2019.within 42 days after end of the contribution period15th of May 2020
Unified ReturnFiling of Unified Online Annual Returns for the year 2019 under 8 Acts and 10 central Rules1st February 202030th April 2020

FAQ’s Labour Law Announcements

FAQResponse
The payment of the wages etc. for the month of February and March 2020 had to be made on the basis of the attendance of the workers, working PAN India. The attendance sheets are not available as of now due to the lockdown.  Can we go ahead with payment on the basis of estimation and then settle the dues post the lockdown period?Yes, since the attendance sheets are not available and the payment has to be made on the basis of number of days worked., it is fine to make payment on the basis of estimation and settling the dues post the lockdown.
Do we have to pay 100% of the wages to the workers for the period our establishments/ factories were shut down?The government has time and again advised all the employers of Public/ Private establishments to extend their coordination by not terminating their employees, particularly casual or contractual workers from job or reduce their wages. If any worker takes leaves, he should be deemed to be on duty without any consequential deduction in wages.

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