More than 42.7 million e-way bills were generated in June with a total value of Rs 12.4 lakh crore, higher than over 40 million e-way bills worth Rs 11.43 lakh crore generated in March. In April and May, 84.53 lakh (Rs 3.90 lakh crore) and 2.51 lakh (Rs 8.98 lakh crore) e-way bills were generated respectively whereas in February and January, 5.63 crore (Rs 15.39 lakh crore) and 5.61 crore (Rs 15.71 lakh crore) e-way bills were generated. E-way bill is a document required for inter-state movement of goods if the value of the consignment is more than Rs 50,000.
According to a press release issued by the CBDT, individuals with self-assessment tax liability for FY 2019-20 (AY 2020-21) up to Rs 1 lakh can deposit the tax till November 30, 2020. Even though ITR filing date for individuals has been extended till November 30, 2020, no relaxation has been granted to individuals having self assessment tax liability of over Rs 1 lakh. Where self-assessment tax exceeds Rs 1 lakh, the same has to be paid by the due dates specified in the Income-Tax Act i.e. July 31 and delayed payment will attract penal interest u/s 234A of the Act.
In a major relief to GST taxpayers, the government has decided to cap the maximum late fee for Form GSTR-3B at Rs 500 per return for the tax period July 2017 to July 2020. The reduced fee will be levied only if returns are filed before September 30, 2020, the CBIC said on Friday. Late fees will be nil if there is no tax liability. GSTR-3B is a monthly self-declaration to be filed by a registered GST dealer. GSTR 3B is a consolidated monthly return filing form for the payment of the net liabilities i.e. output tax less input credit.
Finance Minister Nirmala Sitharaman asked GST officers to foresee the issues faced by domestic businesses and address them proactively so that they can compete on a global scale and build a self-reliant and ‘Atmanirbhar’ India. In a message to tax officers on the third anniversary of GST, Sitharaman also said there is scope for easing compliance further for taxpayers, especially MSMEs. GST was introduced on July 1, 2017. Since then the GST process has been simplified and return filing made easy especially for small businesses. The GST administration has also introduced SMS-based return filing system for taxpayers with ‘NIL’ liability.
The gross GST revenue collected in the month of June stood at Rs 90,917 crore, up from Rs 62,009 crore collected in May and Rs 32,294 crore in April. The collection for the April-June quarter was at 59% of the revenue mopped up in the same period last year. "The government collected gross GST revenue of Rs 90,917 crore in June 2020, which is 91% of the collections in June 2019," Office of Finance Minister Nirmala Sitharaman said. States like Punjab, Chhattisgarh, Madhya Pradesh, Bihar, Assam, Andhra Pradesh, Telangana, Karnataka witnessed growth in GST collection in June over last year.
CBDT has exempted from income tax the purchase of shares at rates lower than the market price in companies undergoing insolvency proceedings and whose board has been taken over by the government. The exemptions would come into effect from April 1, 2020. The I-T exemption has been given on any movable property, being unquoted shares, of a company and its subsidiary received by a shareholder, where, the tribunal on an application moved by the central government has suspended the board of directors of such company and has appointed new directors and the resolution plan has been approved by the tribunal.
In a big tax relief for Delhi's unauthorized colonies that were regularised last year, the government has exempted owners from income tax levy even if they had purchased land or house at rates below the prevailing market price. Since these colonies were previously unauthorized, owners may have purchased houses or lands at below the circle rate fixed by the government for registration of properties. Without this exemption, such legal owners would have become liable to pay income tax on the difference between the fair market value and actual purchase price. The exemption would come into effect from April 1, 2020.
The CBIC extended the validity of e-way bills till September 30 which were set to expire during the period of March 20 and April 15, issued before the lockdown period. This would be the third extension granted by the Board. In notifications issued on Saturday, the Board further extended the time limit, till August 31, for authorities to issue orders or notices in case of rejection of full or partial refund claims. CBIC also extended the due date of compliance related to assessment procedures, notices, orders, filing of appeals and replies among others, for authorities and tribunals till August 31.
The government on Saturday allowed SMS filing of NIL statement in GSTR-1 form with effect from the first week of July, the CBIC said. This would substantially improve the ease of GST compliance for over 12 lakh registered taxpayers. With the facility of SMS getting activated, now eligible taxpayers with NIL liability need not log on to the GST Portal and may file their NIL statement of outward supplies in form GSTR-1 every month or each quarter through a SMS. The CBIC has already made available the facility to file NIL monthly GSTR-3B return through SMS since 8th June 2020.
Ready-to-eat popcorns will attract 18% GST, as per Gujarat GST AAR. Recently, Jay Jalaram Enterprises, a Surat-based puffed corn manufacturer, approached AAR for clarity on the GST rate for ready-to-eat popcorn. The company manufactured ready-to-eat popcorn under the brand name ‘JJ Popcorn’. The popcorn packets that will attract 18% GST are ready to consume, unlike microwave popcorn packets that have to be heated before eating. AAR said the process of manufacturing ready-to-eat popcorns involved heating of corn kernels, the addition of oil and seasonings. AAR, therefore, concluded that the product does not remain a grain after the popcorn manufacturing process.
In what could raise serious concerns for the Central government, the revenue outlook continues to remain dismal and subdued, as the latest GST collection numbers are still bleak and worrisome. GST collections for business activity in May recorded till today morning has touched only Rs 43,913 crore. On a month on month basis, the GST collection for business activities in April, which were severely hit by lockdown stood at Rs 49,500 crore (approx) till June 5. These are however just the provisional numbers. GST Collections for business activities in May 2019, reported in June 2019 stood at Rs 99,939 crore.
In a relief for taxpayers, the government on June 24 extended the deadline for filing income tax returns (original as well as revised) for FY2018-19 to July 31, 2020. The last date for filing income tax returns for FY2019-20 has also been extended to November 30, 2020. Date for filing TDS return for February and March have been extended to July 31, 2020. Deduction for contribution to PF, PPF, NSC, donations made up to July 31, 2020 can be claimed in the ITR for AY2020-21. Date for linking of Aadhaar with PAN has also been extended to March 31, 2021.
Companies which have delayed vendor payments due to liquidity crunch led by the Covid-19 crisis will have to reverse the GST input tax credit availed along with interest at 18% p.a. from the date ITC was taken. These cash-starved companies will have to either make vendor payments within 180 days or reverse the ITC. In many cases companies have issued cheques and even shown this as payment completed in their books of accounts, so as to avail the GST credit. Tax experts said as per the current regulations, if the vendors don’t pay GST, companies cannot avail of credit.
The last date for linking PAN Card with Aadhaar Card ends on June 30. PAN cards not linked with Aadhaar Card may become 'inoperative' after June 30. If PAN becomes inoperative, from July 1 you will not be able to enter into any of the specified financial transactions where PAN is mandatorily required. Income Tax returns filed without linking the two documents will not be processed by the department. A fine of Rs 10,000 will be imposed for using an "inoperative" PAN under Section 272B(1) of the Income Tax Act as it will tantamount to non-furnishing of PAN.
The Gujarat AAR has stated that sale of a developed plot with primary amenities such as roads, underground cables, electricity line, sewerage and drainage line, and water pipelines is a 'supply of service' and will attract GST. The state AAR has ruled that sale of developed plots would be covered under the clause ‘construction of a complex intended for sale to a buyer’ applicable to GST. GST is not applicable to the sale of land because it is neither treated as supply of goods nor the supply of services as per Schedule III of the CGST Act, 2017.