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GST Provisions need relaxation in COVID time

Provisions need relaxation in COVID time

Many provisions of GST are made to handle the fraudsters. They are strict and restrictive. Many of them enable the department with extreme power. These provisions need relaxation in COVID time. Relaxation in these provisions is required. At least for this year. Please spread this article to raise this demand. It can help it reaching the CBIC and Government at large.

Rule 86A- It provides for the blockage of ITC.

When a taxpayer is found to be non-existent. Introduced via notification no. 75/2019 – Central Tax dated 26/12/2019. Now at the time of COVID, many businesses shut down for the time being. Some of them are operating from home. Especially in the IT sector, which can operate from home. This provision may result in forcing the taxpayer to get out of their house just to prove that they are existent. Another dark side is that visit from the department and any right without a basis in their hand results in corruption. Any such hardship on businesses will result in further slow down. We already recorded negative growth of -23% in the last quarter. This provision can result in inspector raj again.  That will break the faith and confidence of businesses.

Late fees for late filing of returns

This is a hard time. Any penalty or late fees is non-desirable. Late fees for non filing of return. Although relaxation is there for GSTR 3b. But the small taxpayers like composition taxpayers are out from this relaxation.

Blockage of ITC on food items-

Many companies are providing food in the house for safety reasons. In some cases, it is mandatory to provide food. ITC in those cases is desirable. Some medical facilities, masks, and sanitizers are also eligible for ITC. The input tax credit related to all these facilities shall be available without any restriction even if they are an item of personal consumption.

ITC of the times used by working from home employee

Corporates are providing many facilities for their work from home employees. Like internet connection, system, mobile phone, and free recharge. An input tax credit for these items should be allowed.




Profile photo of CA Shafaly Girdharwal CA Shafaly Girdharwal


New Delhi, India

CA Shaifaly Girdharwal is a GST consultant, Author, Trainer and a famous You tuber. She has taken many seminars on various topics of GST. She is Partner at Ashu Dalmia & Associates and heading the Indirect Tax department. She has authored a book on GST published by Taxmann.

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