CBIC further extends the validity of E-Way Bill till May 31, 2020

CBIC vide Notification No. 40/2020 – Central Tax Dated May 05, 2020, has further extends the validity of E-Way Bill till May 31, 2020, for those E-Way bills which has been generated under rule 138 of the CGST Rules, 2017 on or before March 24, 2020, and its period of validity expire’s during the period March 20, 2020 to April 15, 2020.

COVID-19 impact: States see sharp erosion in GST collections for April

The COVID-19 outbreak and nationwide lockdown is severely denting the revenue collections of states pushing them to look at possible revenue earning measures including phased opening of liquor vends and pan and gutka shops in the first phase of relaxations for restarting economic activity post lockdown.

The delay is because the government deferred allowed delayed filing of GSTR 3B returns for 15 days from the due date of April 20 to ease compliance burden on taxpayers during lockdown. The worst hit seems to be states such as Delhi, West Bengal, Assam, Andhra Pradesh that are reporting fall in April GST collections to the tune of 90 per cent.

West Bengal is also facing serious fall in tax collections as lockdown has completely stopped service sector activity while manufacturing also remains suspended. GST collections have been badly hit in hilly states that depend largely on tourism and hospitality for revenue.

Centre urged to release pending GST payments to tide over financial crisis

The extension of lockdown will further worsen the state’s finances. The steep fall in GST collection in April is likely to continue in May as well. The GST collection this April was around Rs 400 crore when compared to Rs 1,951.66 crore in the corresponding period last year. Finance Minister Thomas Isaac has demanded that the Centre release the pending GST payments urgently. The government will mobilise Rs 1,000 crore through open market this week.

This will be utilised for the salary and pension payment which comes to around Rs 3,900 crore. On Saturday, Isaac told media persons that central assistance was imperative for the state to meet its regular expenses and fund Covid-19 control measures.

PM Narendra Modi meets Nirmala Sitharaman for 2nd economic stimulus package

The prime minister held discussions with Shah and Sitharaman and would have follow up meetings with ministers of key economic ministries such as Micro, Small & Medium Enterprises (MSME), sources said.

The finance ministry, which deferred release of monthly GST collection numbers on Friday, is also scheduled to make a detailed presentation to the prime minister later in the day on the state of economy and several initiatives that it plans to undertake to stimulate Indian economy.

The prime minister already had meetings with different ministries including civil aviation, labour and power on Friday. He had detailed deliberation with commerce and MSME ministries among others on Thursday with focus on attracting both domestic and overseas investment and revival of small businesses in the country so that the recovery process is hastened.