The Bombay High Court has dismissed a petition seeking further extension of due date for filing annual GST returns for FY 2019-20. Last date for filing return is February 28.
With this, possibility of further extension of due date has dimmed. Rajat Mohan, Senior Advisor with AMRG advises, “Complete all GSTR 9 & 9C before 28 February, 2021 as there is very less chances of extension.”
GST assesses have to file monthly/quarterly and annual returns. Annual returns have two forms – GSTR 9 and GSTR 9C. While GSTT 9 is for all assesses, GSTR 9C is the reconciliation statement to be submitted by those GST registered taxpayers to whom GST audit applies. GST Audit applies to those taxpayers whose turnover exceeds ₹2 crore. Section 44 of CGST Act prescribes annual returns to be filed. Though law prescribes returns to be filed on or before 31 December following the end of such financial year. This means for FY 2019-20, last date for filing return would have been 31 December, 2020 under normal situation.
Considering difficulties on account of pandemic, a petition was filed in Bombay High Court seeking extension of due date. After arguments from both the side – petitioner and respondents – a division bench of Justices Milind N Jadhav and Ujjal Bhuyan noted that time limit for filing return has already been extended to February 28 from December 31. It mentioned that non-extension of the time limit beyond February 29 would lead to any extinguishment of right.
The bench found that the Government has already made filing of annual return optional for businesses with annual turnover up to ₹2 crore for the financial years 2017-18, 2018-19 and 2019-20. Also, businesses with turnover up to ₹5 crore have been exempted from filing annual return for financial years 2018-19 and 2019-20.
“We also take note of the fact that it is the professional body of practitioners who are before use and not any individual taxable person expressing any difficulty in adhering to the extended timeline of 28.02.2021,” the bench said while dismissing the petition.
On Saturday, Central Board of Indirect Taxes and Custom (CBIC) reiterated its intention of not extending the date by urging assesses, whose aggregate annual turnover for the FY 2019-20 is more than ₹2 crore to file annual return before February 28. “Late filing of annual return will attract late fee,” the board said.
Late fees of ₹200 per day of delay subject to a maximum cap of an amount at 0.25 per cent of total turnover in respective State/Union Territory