New announcements in extending ITR filing, GST, Custom regulations, IBC to MCA codes and more

The nationwide Janta Curfew dated March 24, 2020, was a sure warning from Narendra Modi, Primeminister (PM) India, about the need to contain the Covid 19 contamination. Taking a closer look at another announcement in aligning a special economic response task force to stem the conditions. The then predicted losses are worsening as India witnessed a sudden rise in positive Covid 19 cases, which forced our PM Modi to declare a complete nationwide lock-down for 21 days. Panic strikes the startup ecosystem as the MCA 21 filings are delayed and March being the last month of the fiscal year people are struggling to meet the deadlines as the Covid-crisis prevails. To cease the burgeoning paranoia, Nirmala Sitharaman, Finance Minister, assures relaxations of many statutory norms and compliances, extending the pay-date relaxation in meeting the tax compliance deadlines.

The economic task force led by Nirmala is working on the full swing and gathered deep insights about the NPA norms, tax payments, and income support to those in the unorganized sectors. Earlier on March 24, 2020 the finance minister called a press conference, addressing few changes in matters like income tax, GST, customs & central excise regulations, company's provisions and Ministry of Corporate Affairs (MCA). Few others include IBC in the solvency & bankruptcy code, banking & commerce related compliances and even for the department of the fisheries relating Exim phytosanitary & sanitary matters."We did mention on the tweet announcing the press conference, we are causing in coming up with an economic package which will be announced sooner than later"adds Nirmala.

The Covid crisis was a large blow to the Indian economy, where 53 percent of the businesses in India will be affected due to the pandemic situation and industries across India is about to suffer a hefty loss of Rs. 3000 crores. But the steadfast measures from the Indian government are a light in the end of the tunnel where Income Tax Returns (ITR), GST return dates are pushed to June 30, 2020. The delayed payments in tax returns are to be met at a reduced rate from 12 to 9 percent while for GST returns companies having less than Rs 5 crore turnover, no internet, late fee or penalty charges will be imposed. Further, Nirmala curbs the late fees in the MCA filings for the startups and postponed the registry date of the MCA’21 from April 1 till September 30, 2020.

We did mention on the tweet announcing the press conference, we are causing in coming up with an economic package which will be announced sooner than later

Viewing the worsening conditions of the industry portfolio where production has stopped due to the current crisis the government is performing various drills to curb the nation's financial emergency. The threshold limit of insolvency & bankruptcy which was about Rs. 1 lakhs, the threshold is raised to Rs 1 crore to prevent insolvency among the MSMEs. The government even promises to keep aa sharp eye till April 30, 2020, if the situation continues to worsen steps will be taken in suspending section 7.9, 10 of IBC for a period of six months till the companies stop filing for insolvency. The matter of fact these relaxations are a boon to industries as they praise the government in understanding the challenges faced by the companies in the immediate term.

Stated earlier, March is the end of the financial year, the sanitary permits for the export for the fisheries are about to expire between April 1st to 15th of the month. The permit dates are extended till July 1st -15th and delayed arrivals of the assignments for the fish-farms due to the complete lockdown will cost no extra charges and will be overlooked for over a month's time. Customs department who plays a key role in managing the compliances of government’s export & import have issued a 24x7 clearance till the end of June 30, 2020, ensuring that no commodities are left stationed at the ports and other transaction points. Whereas the submission dates for issue of notice, notification, order approval, sanction, filing of the appeal and other documentation which was dated from March 20 to 29, 2020, will also be extended June 30, 2020.

The flexibility in norms is no more confined only to the industries but also for the commoners. Knowing the fact that due to lock-down situations people won’t be able to reach their respective bank ATM to withdraw cash, all debit cardholders are assured that they can withdraw cash for free from any other banks’ ATM for three month's at a stretch. Even the bank charges for the digital transactions are reduced for all trade finance consumers and also a reduced waiver of minimum balance fee. There might be a towering tide that may flood the financial establishment of the country, but India pledges to dampen the impact with corrective measures, exemplary actions in terms of how India handles the economy better.