GST payers seek relief ahead of crucial GST Council meeting

Pritam Mahure, a Pune based Chartered Accountant says if the GST Council decides to extend the deadline for filing the pending returns for FY 2018-19 then it will be a big relief for those buyers who could not claim their input tax as their suppliers did not file their returns timely.

New Delhi: Tax experts have demanded extension of two crucial deadlines ahead of GST Council meeting on Friday, particularly the extension for filing the GST returns for FY 2018-19 which expired in September last year and also the date for issuing credit notes for FY 2019-20, from September this year to March next year.

“There are people who have not filed their GST returns for FY 2018-19, nor have they paid the late fee,” said Pritam Mahure, a Pune based Chartered Accountant.

If a supplier does not file GST return for outward supplies within the stipulated time then the buyer will not be able to take benefit of the input tax credit (ITC) under the GST.

In these cases, where a supplier has not filed his GST return for outward supplies made during FY 2018-19, the due date for claiming input tax credit by a supplier expired in September 2019.

Pritam Mahure says if the GST Council decides to extend the deadline for filing the pending returns for FY 2018-19 then it will be a big relief for those buyers who could not claim their input tax as their suppliers did not file their returns timely.

“In case of transactions carried out during FY 2017-18, the GST Council had extended the deadline for claiming input tax credit to March 2019. Similarly, a hope is there that in case of transactions carried out during FY 2018-19, the Council will extend the deadline to claim Input Tax Credit to September 2020,” Pritam Mahure told ETV Bharat.

Another expectation among taxpayers and experts is that the apex body to administer the GST in the country will also extend the deadline for issuing credit notes to buyers.

These credit notes are issued by suppliers to those buyers where due to any reason the sale price of goods will have to be decreased after the sale. In such cases, the supplier issues a credit note to the buyer for the price difference that reduces the GST liability of an intermediary such as a dealer or distributor.

The due date for issuing credit note for FY 2019-20 (April to March) will expire in September this year.

Pritam Mahure says a significant number of manufacturers will either offer discount or reduce their dealer prices for the goods already supplied by them to encourage the dealers to clear the stocks as Covid-19 outbreak has adversely affected the sale.

“GST law allows issue of credit notes till September this year but due to Covid-19 outbreak it is very difficult to clear the stocks by then so this deadline should also be extended to March 2021,” Pritam Mahure added.

(Article by Krishnanand Tripathi)