Accounting and bookkeeping services in Hyderabad > Blog > Accounting > How GST And ROC Changes Will Affect You: A Simple Guide

The fear of a new variant of Covid-19- Omicron, and the rising cases of infections and deaths, has affected the Indian economy to a great extent. The government is always trying to ease and provide relief to its citizens. One way of providing this relief is by extending the deadlines for filing various compliances like GST etc. Such extensions help taxpayers and other associated persons to tide over the difficulties and help in the smooth business functioning.

The government of India has extended guidelines for:

  1. Filing taxes
  2. Payment of taxes
  3. Filing of appeals

ROC deadline extension

Regarding the Financial Year 2020-21, for companies other than LLPs, as per the official notification by the Ministry of Corporate Affairs (MCA);

  • The due date for filing annual financial statements. And return filings without levy of any additional fees has been extended from December 31, 2021, to February 15, 2022
  • No additional fees for e-forms AOC-4, AOC-4 (CFS), AOC-4 XBRL, AOC-4 (Non-XBRL) up to February 15, 2022
  • No additional fees for e-forms MGT-7/MGT-7A up to February 28, 2022

Since there are no additional charges that would be levied companies would have to pay a standard fee for filling out the form.

It is important to note that this extension is not applicable for LLPs and their return filing date remains unchanged, i.e., December 31, 2021.

GST deadline extension

The Central Board of Indirect Taxes and Customs (CBIC) in agreement with the Election Commission of India, has notified and extended the due dates to file the annual returns for the Goods and Service Tax (GST) for Financial Year 2020-21;

  • The due date for filing GSTR-9 and GSTR-9C has been extended from December 31, 2021, to February 28, 2022.

The GSTR-9 form is used to furnish the annual returns of the company, comprising details regarding the inward and outwards supplies received and made under various heads.

The form GSTR-9C is the self-certified reconciliation statement of GSTR9 and audited annual returns provided by the company.

Filing the GSTR-9 is mandatory for companies with an aggregated turnover of Rs. 2 crores while GSTR-9C is required to be filed by registered taxpayers with an aggregate turnover of Rs. 5 crores.

Impact of the extended deadlines on government revenue

The government extends the deadlines to ease the difficulties faced by the taxpayers in meeting statutory and compliance requirements because of the coronavirus situation. This gives the taxpayer more time to comply with the dates of proceedings. The extended deadlines provide the taxpayers with ease and relief. However, it puts a strain on government funds.

The government needs funds to carry out its welfare programs, and it is the taxpayer’s money that contributes to social and infrastructural development. Extended deadlines mean delayed revenue for the government. Since it is the duty of the government to take care of the hardships faced by various stakeholders, it is always in the best interest to extend due dates of compliances.

All is not lost in this bargain. The government also gains largely by extended deadlines, as it helps to attract more taxpayers into the tax net. Having more taxpayers and businesses being tax compliant helps the government to generate more revenue which adds to the national funds. Industries can use these extended due dates. And relax a little while they struggle with their own issues of labor and other resources during these troubled times. The support of relaxed deadlines provided by the government to the industrial sector gives it time to recover from the setback of the pandemic as they work hard to get back to their operations.

Extended deadline is one of the many efforts provided by the government to help industries to boost their businesses. Industries are struggling with financial issues, which is a direct impact of the lockdown. The eased due dates are a push for industries to help them find ways and means to get back to normal operations and comply with all statutory obligations. Companies should use this benefit and file their returns and pay GST and other taxes, which will increase government revenue.

If taxpayers do not file the GST returns and pay taxes on time, they will have to pay fines and penalties. Hence, taxpayers avoid filing returns and this reduces government revenue. With extended due dates, the companies do not need to pay penalties. Thus, it reduces the burden of the taxpayers and increases government revenue. The government can use this revenue to develop health care facilities and support the economy.

The government has noticed that its revenue increases when it extends due dates of return filing. This is primarily because it gives enough time for taxpayers to be careful and file correct returns. The taxpayers do not need to keep revising returns as they have ample time in hand to check their financials. They do not need to struggle to meet deadlines and give them the much-needed breathers.

Thus, extending the due dates is always a welcome initiative from the government and the industry viewpoint.

How we can support you:

Even though the government has extended due dates for ROC and GST filings, industries are still struggling with the impact of pandemics and lock-down. Companies that are finding it hard to manage their business operations. And also comply with statutory requirements can always turn to financial service providers. 

Diligen is one such service provider in India that can cater to all your tax needs. Diligen has a pool of tax experts and consultants who use automated tools. And software to improve tax accuracy and maintain proper records of inward and outward supplies. The taxation team at Diligen can manage enormous volumes and complex transactions with utmost ease. Diligen provides clients with a wide range of tax solutions that can be customized as per different business needs. The tax solutions provided by Diligen are flexible and cost-effective. Clients using Diligen’s taxation and financial services during the Covid crises have been able to maintain and fulfill their statutory compliance and obligations without payment of fines and penalties. Diligen believes in supporting its clients even during hard times and ensures that continuous support and help are provided in all matters so that the client’s business does not suffer.

Leave a Reply