OPEN APP
Home >News >India >GST compliance relief: what businesses need to know

NEW DELHI: Businesses have got an extra leeway in making their goods and services tax (GST) payments for March, April and May sales as the federal indirect tax body, the GST Council, has extended the scope of the relief that was offered earlier this month.

Businesses have got a longer period for paying taxes for sales achieved in these three months, with relief on interest liability.

On 1 May, a panel of officials, authorized to make quick decisions on behalf of the Council offered relief for March and April. Now, relief is available for May as well in addition to an extension of the period of concessional interest rate for March and April tax periods.

After the first 15 days of no interest liability for delayed payments in the case of March and April tax periods, there is a period of concessional 9% interest rate before the usual 18% penal interest kicks in. This period of concessional interest, which was 15 days for March and April as per the relief offered on 1 May, has now been extended to 45 days for the March tax period and 30 days for the April tax period, as per details of the concessions granted by the GST Council.

This benefit is for business with up 5 crore sales. They have also been extended the relief of no interest liability for 15 days after the due date for paying taxes for May transactions. After this, 9% interest will be charged for the next 15 days.

Larger businesses have been given 9% concessional interest for the first 15 days after the due date for paying taxes for May transactions.

The Council has also given extra time for tax officials to complete certain procedures which fall due between 15 April and 29 May, by 30 May.

The interest relief is expected to help small businesses in a big way as many of them are facing cash flow problems and disruption in business owing to regional movement restrictions imposed to fight back the pandemic.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout