Credit and Finance for MSMEs: The government had last week announced the expansion of the deadline for payments under the Direct Tax Vivad Se Vishwas Act, 2020, and some compliances under the Income Tax Act by two months till June 30. In this article, we will discuss 80% MSMEs, startups urge to extend GST payment.
80% MSMEs, startups urge
Credit and Finance for MSMEs: The government has announced the addition of the deadline for payments under the Direct Tax Vivad Se Vishwas Act, 2020, and some compliances under the Income Tax Act by two months till June 30.
MSMEs and startups, reeling under the Covid effect, have urged the government to broaden the GST payment and return filing deadlines for the month of March, April, and May to June 30, 2021.
According to a modern survey of MSMEs and startups by community social media platform LocalCircles, as much as 80 per cent respondents suggested expansion of deadlines inferring challenges faced in filing GST payments and returns for the month of March. Finance Minister Nirmala Sitharaman had furnished a similar extension on ITR filing and GST return deadline last year.
MSMEs and startups have been requesting addition of the GST payment and filing deadlines as in many states there have been curfew and lockdown restrictions that have been assessed since early or mid-April preventing them from meeting these deadlines. The respondents want the government to extend the deadline without liability.
The survey, performed between April 21-22, saw the participation of 2,370 startups, MSMEs, dealers, and service providers located in 122 districts of India. LocalCircles had also escalated the petition for action to Sitharaman through a letter sent last week.
Further Notifcation by Central Government
The government had already published the extension of the deadline for payments under the Direct Tax Vivad Se Vishwas Act, 2020, and some compliances under the Income Tax Act by two months till June 30.
The assistance offered to taxpayers, tax consultants, and other stakeholders last week comprised, “Time limit for enacting of any order for assessment or reassessment under the Income-tax Act, 1961 the time limit for which is furnished under section 153 or section 153B.
Time limit for enacting an order consequent to guidance of DRP under sub-section (13) of section 144C of the Act; Time limit for allocation of notice under section 148 of the Act for reopening the assessment where income has escaped assessment; and Time Limit for sending indication of processing of Equalisation Levy under sub-section (1) of section 168 of the Finance Act 2016.