Covid impact on MSMEs:: “The daily business loss due to lockdown in Delhi is likely to be around Rs 600 crore while for overall India, the daily loss could be around Rs 30,000 crore taking into account full lockdown, partial lockdown, night curfews, and other forms of restrictions,” said by one expert.
In the wake of the Covid crisis, the Confederation of All India Traders (CAIT) has urged the government to postpone 11 GST compliances and 15 Income Tax Act compliances by three months. In a communication to Finance Minister Nirmala Sitharaman, the confederation, which represents about 8 crore traders across 40,000 trade associations in India, demanded that these compliances that traders would comply with in April be postponed. “Non-compliance of these stipulations will attract huge penalties on traders across the country,” CAIT said.
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“In these tough times when all the state governments are taking strict precautionary measures such as complete curfew, night curfew, 72-hour lockdown, complete lockdown, containment zones, etc., in order to restrict the spread of Covid-19 in their states, it will not be possible to comply with all these statutory compliances in time,” said by an expert.
Accprding to CAIT, In April, the GSTR-3B, GSTR-1, GSTR-4, CMP-08, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, and GSTR-8 returns were due, the due date for the issue of TDS certificates for tax deducted under sections 194-IA, IB, and 194M, a quarterly statement in respect of international remittances in form 15CC, furnishing form 3BB, form 24G, challan-cum-statement in respect of tax deducted under section 194-IA, and other provisions of the Income Tax Act are all due on the same day.
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“For Delhi, the daily business loss due to lockdown is likely to be around Rs 600 crore while for overall India, the daily loss could be around Rs 30,000 crore taking into account full lockdown, partial lockdown, night curfews, and other forms of restrictions,” said by one expert.
On Saturday, the government declared relief for taxpayers, tax consultants, and other stakeholders by extending the deadline for payments under the Direct Tax Vivad Se Vishwas Act, 2020, as well as certain compliances under the Income Tax Act, by two months, until June 30. These included, “Time limit for passing of any order for assessment or reassessment under the Income-tax Act, 1961 the time limit for which is provided under section 153 or section 153B thereof; Time limit for passing an order consequent to direction of DRP under sub-section (13) of section 144C of the Act; Time limit for issuance of notice under section 148 of the Act for reopening the assessment where income has escaped assessment; and Time Limit for sending intimation of processing of Equalisation Levy under sub-section (1) of section 168 of the Finance Act 2016,” according to the Finance Ministry statement.
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Since the second wave of the pandemic began in mid-February, India has seen an increase in Covid cases. According to the Union Health Ministry, the country recorded 3,49,691 new cases, 2,767 deaths, and 2,17,113 discharges in the last 24 hours due to a shortage of essential life-saving supplies such as medical oxygen. According to the ministry’s numbers, India’s total number of Covid cases increased to 1,69,60,172, with active cases surpassing the 26-lakh mark.
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