CGST annual filing : Extension is for FY 2017-18, whether extension is also desirable for FY 2018-19 – reasonableness is required to avoid unproductive work and publicity hype for seeking extensions and allowing extensions to avoid brain drain.

[CA DEV KUMAR KOTHARI]

On reading of provisions of S.44 we find that due date for annual filing is 31^st December following the end of FY on 31^st March to cases in which this provision apply.

Therefore, due date for FY 2017-18 was 31^st December 2018. And for FY 2018-19 will be 31^st December, 2019 to cases in which this provision apply.

Amendment for FY 2017-18:

Amendment by insertion of an Explanation and then amendment of such Explanation are indicated below with reference of relevant orders(history):

Therefore we find that first date was extended by insertion of an Explanation and date was fixed as 31^st March 2019, then it was extended to 30^th June 2019, then to 31^st August, 2019 and now to 30^th November, 2019.

This is only for FY 2017-18 and due date for FY 2018-19 remain to be 31^st December, 2019.

We find that there have been four extensions for FY 2017-18 out of which three extensions were for 3 months at a time and one was for two months.

This shows that time originally fixed and extended were not reasonably fixed. Stake holders in this regard had requested for longer time however, authorities are considering the power of fixing dates as an important tool for their importance. Why all factors are not considered and limitations are not prescribed in a reasonable manner is important question.

Power vide proviso:

Power for extension of time by Commissioner as provided in the proviso inserted vide  FINANCE (NO. 2) ACT, 2019 will have great impact, and it is likely that in different jurisdiction different extensions will be provided. And extensions may also be provided from case to case basis.

Extensions are on the recommendations of the Council:

All extensions are to be on the recommendations of the Council and for reasons to be recorded in writing and are to be  by notification. At present including latest extension has been by an order of the l Government of India MINISTRY OF FINANCE (Department of Revenue). Even after authorizing Commissioner vide the Proviso when it becomes effective, the Commissioner shall extend time only on the recommendations of the Council and for reasons to be recorded in writing and are to be by notification.

Unproductive work:

We find that lot of unproductive work is involved in extensions. Particularly so when it is to be on recommendation of the council. This can be avoided by adopting reasonable ness in administrative policies and administrative decisions.

Is it that greed of power and publicity that limitations are fixed unreasonably so that public and stake holders have to request from time to time and authorities are considering and are being satisfied about their importance for not accepting requests, accepting requests partially, and allowing extension after keeping stake holders and concerned person on tenterhook for a long time and then showing favor by allowing some extension.

All these causes brain drain, chaos, and uncertainties.

Earlier recent  article on this website by the same author on similar matter is as follows:

FIX REASONABLE TIME SO THAT UN-NECESSARY TIME IS NOT LOST FOR EXTENSIONS, SEEKING ADJOURNMENTS ETC An Article By: - CA DEV KUMAR KOTHARI  August 20, 2019

 

Financial Year 2018-19:

The last date fixed is 31^st December 2019. In deed work is a lot and resources are limited. Up to 30^th November matters for 2017-18 will continue. This can cause hardship to many. Particularly small and medium size organizations. Therefore, extension on reasonable basis can be allowed well in advance.

The provisions of S.44 and amending notifications are reproduced below with highlights added by author.

Statutory Provisions

CENTRAL GOODS AND SERVICES TAX ACT, 2017

Annual return.

44. (1) Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year.

⁴[Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual return for such class of registered persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.]

(2) Every registered person who is required to get his accounts audited in accordance with the provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed.

¹[Explanation.-For the purposes of this section, it is hereby declared that the annual return for the period from the 1st July, 2017 to the 31st March, 2018 shall be furnished on or before the ⁵[30^th November, 2019].]

 History of amendments: 

**********

Notes

1. Inserted vide Order No. 1/2018-Central Tax dated 11-12-2018

2. Substituted vide Order No.03/2018-Central Tax dated 31-12-2018 before it was read as "31st March, 2019"

3. Substituted vide Order No. 6/2019-Central Tax dated 28-06-2019 before it was read as "²[30th June, 2019]"

4. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. ………….

5. Substituted vide Order No. 7/2019-Central Tax dated 26-08-2019 before it was read as "³[31st August, 2019]"

 

CGST - Circulars / Ordes - GST

MINISTRY OF FINANCE

(Department of Revenue)

ORDER

No. 1/2018-Central Tax

New Delhi, the 11th December, 2018

S.O. 6109(E).––WHEREAS, sub-section (1) of section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year;

AND WHEREAS, for the purpose of furnishing of the annual return electronically for every financial year as referred to in sub-section (1) of section 44 of the said Act, the electronic system to be developed is at the advanced stage and is likely to be made operational by the 31st January, 2019 as a result whereof, the said annual return for the period from the 1st July, 2017 to the 31st March, 2018 could not be furnished by the registered persons, as referred to in the said sub-section (1) and because of that, certain difficulties have arisen in giving effect to the provisions of the said section;

NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central Government, on recommendations of the Council, hereby makes the following Order, to remove the difficulties, namely:––

1. Short title.––This Order may be called the Central Goods and Services Tax (Removal of Difficulties) Order, 2018.

2. In section 44 of the Central Goods and Services Tax Act, 2017, after sub-section (2), the following Explanation shall be inserted, namely:––

“Explanation.-For the purposes of this section, it is hereby declared that the annual return for the period from the 1st July, 2017 to the 31st March, 2018 shall be furnished on or before the 31st March, 2019.”.

[F. No. 20/06/17/2018-GST]

Dr. SREEPARVATHY S. L., Under Secy.

Notification - GST - Central GST (CGST)

Government of India

Ministry of Finance

(Department of Revenue)

Central Board of Indirect Taxes and Customs

Order No.03/2018-Central Tax

New Delhi, the 31st December, 2018

S.O. 6429 (E).––WHEREAS, sub-section (1) of section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year;

AND WHEREAS, for the purpose of furnishing of the annual return electronically for every financial year as referred to in sub-section (1) of section 44 of the said Act, through the electronic system to be developed is at the advanced stage, it may likely to take some more time for being made operational as a result whereof, the said annual return for the period from the 1st July, 2017 to the 31st March, 2018 could not be furnished by the registered persons, as referred to in the said sub-section (1) and because of that, certain difficulties have arisen in giving effect to the provisions of the said section.

NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central Government, on recommendations of the Council, hereby makes the following Order, to remove the difficulties, namely:––

1. Short title.––This Order may be called the Central Goods and Services Tax (Third Removal of Difficulties) Order, 2018.

2. In section 44 of the Central Goods and Services Tax Act, 2017, in the Explanation, for the figures, letters and word “31st March, 2019”, the figures, letters and word “30th June, 2019” shall be substituted.

[F.No.20/06/16/2018-GST]

(Dr. Sreeparvathy S.L.)

Under Secretary to the Government of India

Notification - GST - Central GST (CGST)

Government of India

Ministry of Finance

(Department of Revenue)

Central Board of Indirect Taxes and Customs

Order No. 6/2019-Central Tax

New Delhi, the 28th June, 2019

S.O. 2217 (E).––WHEREAS, sub-section (1) of section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year;

AND WHEREAS, for the purpose of furnishing of the annual return electronically for every financial year as referred to in sub-section (1) of section 44 of the said Act, certain technical problems are being faced by the taxpayers as a result whereof, the said annual return for the period from the 1st July, 2017 to the 31st March, 2018 could not be furnished by the registered persons, as referred to in the said sub-section (1) and because of that, certain difficulties have arisen in giving effect to the provisions of the said section.

NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central Government, on recommendations of the Council, hereby makes the following Order, to remove the difficulties, namely:––

1. Short title.––This Order may be called the Central Goods and Services Tax (Sixth Removal of Difficulties) Order, 2019.

2. In section 44 of the Central Goods and Services Tax Act, 2017, in the Explanation, for the figures, letters and word “30th June, 2019”, the figures, letters and word “31st August, 2019” shall be substituted.

[F.No.20/06/17/2018-GST]

(Ruchi Bisht)

Under Secretary to the Government of India

 

Notification - GST - Central GST (CGST)

Government of India

Ministry of Finance

(Department of Revenue)

Central Board of Indirect Taxes and Customs

Order No. 7/2019-Central Tax

New Delhi, the 26th August, 2019

S.O. 3071 (E). - WHEREAS, sub-section (1) of section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year;

AND WHEREAS, for the purpose of furnishing of the annual return electronically for every financial year as referred to in sub-section (1) of section 44 of the said Act, certain technical problems are being faced by the taxpayers as a result whereof, the said annual return for the period from the 1st July, 2017 to the 31st March, 2018 could not be furnished by the registered persons, as referred to in the said sub-section (1) and because of that, certain difficulties have arisen in giving effect to the provisions of the said section.

NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central Government, on recommendations of the Council, hereby makes the following Order, to remove the difficulties, namely:––

1. Short title.––This Order may be called the Central Goods and Services Tax (Seventh Removal of Difficulties) Order, 2019.

2. In section 44 of the Central Goods and Services Tax Act, 2017, in the Explanation, for the figures, letters and word “31st August, 2019”, the figures, letters and word “30^th November, 2019” shall be substituted.

[F.No.20/06/07/2019-GST]

(Ruchi Bisht)

Under Secretary to the Government of India

Footnote 4 . Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. ………….

Amendment of section 44.

98. In section 44 of the Central Goods and Services Tax Act, in sub-section (1), the following provisos shall be inserted, namely:-

“Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual return for such class of registered persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.”.