With the
virtual lockdown and closure of companies amid the COVID-19 pandemic, there has
been a widespread financial impact on the business sector. Like with all
crisis, the uncertainty and sudden surge of the global health and safety
challenge has rendered businesses to suffer a halt to their operations.
In view of
the recent economic and financial crisis,the central government has announced economic
packages so as to help the nation recover from the losses incurred during the
COVID-19 outbreak. Regarding the statutory and regulatory compliance matters
for the GST and ITR filing, the central government finance ministry has extended
the deadlines for the same.
Coming as a
necessary relief to the business suffering from the economic impact of the global
corona virus pandemic, the filing of return for the months of March, April and
May have been extended till June 30.
As the
financial experts and strategists have suggested for a major economic crisis
post the pandemic subsides, companies are preparing to derive strategies and functionalities
that will lead to a mitigated impact of the crisis once we recover from the
COVID-19 pandemic.
In addition
to the extensions for the return filing dates, the government has also announced
that for companies with turnover up to INR 5 crores, no late fee, interest or
penalty will be charged.
For
businesses with more than INR 5 crore turnover no late fee and penalty will be
charged on returns filed within 15 days. There is also a reduction in interests
and they will be liable to pay 9% interest rate.
This
extension in GST return filing will allow companies to focus on the resumption
of services once the pandemic crisis subsides and this will result in a stable
economic structure so that the nation emerges triumphant once the crisis is
over.
The waiver
schemes on interest rates, late fees and penalties will enable companies to
target optimum revival of normal activities once the lockdown ends. The GST consultant in Gurgaon guides business enterprises with the right advise so as to
mitigate the risks and emerge in a stable state that will ensure sustenance
over extended periods.
Coming as a
major relief for taxpayers, the decisions to revise due dates for filing of
returns will ensure that the companies are spared of the troubles and
challenges during such times of crisis and they can initiate to recover from
the financially troubled times.
Being appreciated
highly, such decisions of the central government to look after the interests of
the small businesses have been a representation of the intentions that the
government has towards supporting entrepreneurship scenario in the
country.
At Aggarwal
Varun & Co, we offer GST registration in Gurgaon and myriad other
taxation services for businesses of all scales. Our CA will help you ensure
seamless financial management and tax compliance.
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