India: deadline for GST compliance extended
The Indian government has extended the deadlines for routine Goods and Services Tax (GST) compliance, cut the interest charged on delayed tax payments and offered late fee waiver for taxpayers, granting these concessions for a limited time window of two weeks to a month, effective May 1.
The Finance Ministry said the extension was a response to the challenges faced by taxpayers in meeting the statutory and regulatory GST compliances due to the outbreak of the second wave of the Covid-19 pandemic.
Instead of levying the 18% penalty interest for delayed payments, the Ministry has lowered the rate to zero or 9% for different categories of taxpayers. Traders registered under the Composition Scheme will not have to pay interest for 15 days after the normal due dates for tax payments, 9% for the next 15 days and 18% after that.
Taxpayers due to submit tax returns in May for transactions made in April have also been granted 15 more days and returns for the full financial year 2020-21 can now be submitted up to May 31, instead of April 30.
In April, several deadlines under the Income Tax Act of 1961 were extended due to the pandemic’s resurgence.