India is currently under a 21-day lockdown period due to the coronavirus outbreak. This lockdown has caused several businesses to halt their operations entirely, which has resulted in the disruption of cash flow and several other challenges. The Central Board of Indirect Taxes and Customs on the advice of the Goods and Services Tax (GST) Council issued a notification to provide some relief to businesses.
CBIC provides relief to businesses on tax credits
The CBIC on Friday notified some reliefs to businesses by allowing affability in claiming tax rebates and extending the validity of electronic permits for the movement of goods. According to the notification, restriction on businesses availing of tax credits where suppliers have not furnished details of invoice or credit notes will apply only cumulatively from February to August 2020. This would allow companies to take the full tax credit for this period and ensure acquiescence when they file returns for the tax period of September.
Currently, there is only a 10% limit to businesses availing of credits for the taxes they have paid on the raw materials and other services obtained if the supplier does not have furnished details of invoices or credit notes.
CBIC extends the validity of all electronic permits for the movement of goods till 30th April
The CBIC, in its notification, also announced the extension of the validity of all electronic permits for the movement of goods that fell from 20th March and 15th April to 30th April. Rajat Mohan, a senior partner at law firm AMRG & Associates, said that this would be a major relief for the goods industry which has been facing the issue of goods remaining stuck in transit due to the urgent lockdown. The CBIC also announced a conditional waiver of late fee and concessional interest rate announced last month for the late filing of GST returns. Currently, the coronavirus outbreak has put the whole nation on a halt that has caused businesses to stop their operations.