2021 (3) TMI 14 - HC - GST

Court denies extension for GST annual return filing due to Covid-19 impact

Goods and Services Tax Practitioners’ Association and another Versus Union of India through its Revenue Secretary and others

The Court declined to grant the petitioners' request for further extension of the deadline for filing annual returns under the GST Act in Maharashtra due ... Seeking direction to the respondents to extend the periodicity of filing of annual returns in the State of Maharashtra in COVID-19 pandemic situation - section 44 of the Central Goods and Services Tax Act, 2017 read with Rule 80 of the Central Goods and Services Tax Rules, 2017 - HELD THAT:- It is not that the time-limit has not been extended. The initial due date of 31.12.2020 has been extended to 28.02.2021. That apart, on going through the relevant provisions of the CGST Act, more particularly the provision of section 47(2) thereof, we do not find that non-extension of the time-limit beyond 28.02.2021 would lead to any extinguishment of right - It is found from the written instructions dated 25.02.2021 that vide notification No.77 of 2020 - Central Tax dated 15.10.2020 filing of annual return in the prescribed form for businesses with annual turnover upto ₹ 2 crores has been made optional for the financial years 2017-18, 2018-19 and 2019- 20; and for businesses with annual turnover upto ₹ 5 crores filing of the prescribed form for the financial years 2018-19 and 2019-20 has been waived off vide notification No.79/2000 - Central Tax dated 15.10.2020. Also, it is noteworthy that it is the professional body of GST practitioners and not any individual taxable person expressing any difficulty in adhering to the extended timeline of 28.02.2021. Petition dismissed - decided against petitioner. Issues:Extension of periodicity for filing annual returns in Maharashtra under GST Act due to Covid-19 lockdown.Analysis:The petitioners, Goods and Service Tax Practitioners' Association and its President, sought a direction to extend the periodicity of filing annual returns in Maharashtra until the complete lifting of lockdown or improvement in the Covid-19 situation. They also requested an extension of the limitation of filing annual returns for the year 2019-20 under the Central Goods and Services Tax Act until 30.06.2021. The petition highlighted the impact of the ongoing pandemic in Maharashtra, with fresh lockdowns and increased cases, affecting the ability to finalize audit reports under the Income Tax Act within the stipulated time for filing annual returns under the GST Act.The petitioners had approached the Grievance Redressal Committee and the GST Council seeking relief before filing the writ petition. They argued for the exercise of discretionary power by the Commissioner under the Maharashtra Goods and Services Tax Act to extend the time limit for filing annual returns due to the force majeure of the Covid-19 pandemic. Reference was made to a judgment of the Rajasthan High Court regarding a similar issue related to the non-functioning of the GSTN portal for the financial year 2017-18.On the other hand, the Additional Solicitor General cited written instructions from the Central Board of Indirect Taxes and Customs, emphasizing that the government had already extended the due date for filing annual returns and reconciliation statements from 31.12.2020 to 28.02.2021 considering the challenges faced by taxpayers. It was argued that repeatedly extending the deadline could compromise the effectiveness of tax administration, especially concerning audit compliance.The Assistant Government Pleader for the State of Maharashtra clarified that the Commissioner could only extend the time limit upon recommendations from the GST Council, and there was no independent authority for the state to make such decisions. After considering the submissions from all parties, the Court declined to grant the petitioners' request for further extension beyond the already extended deadline of 28.02.2021. The Court noted that certain relaxations had already been provided for businesses with specific annual turnovers, making the filing of annual returns optional or waiving off the requirement for certain years. Additionally, the Court observed that the petition was brought by a professional body of GST practitioners and not individual taxpayers facing difficulties in meeting the extended deadline.In conclusion, the Court dismissed the writ petition, stating that the extension of the time limit had already been granted until 28.02.2021, and further extension at the eleventh hour was not warranted. The Court found that non-extension beyond the given date would not lead to the extinguishment of any rights based on the provisions of the CGST Act.