Govt Provides Compliance Relief To Companies Amid Lockdown

Finance Minister Nirmala Sitharaman announced some compliance relief measures for businesses in India.

GST

• Last date for filing March, April and May 2020 GST (goods and service tax) returns has being extended to 30 June 2020. Different staggering dates will be applicable, but all will end in June.
• There will be no interest, no penalty and no late fee charged for companies with a turnover of less than Rs 5 crore. Bigger companies will be charged interest, but no late fee and no penalty.

Sabka Vishwas scheme

• Payment date under the 'Sabka Vishwas' scheme, for settling disputes in the indirect tax regime, has been extended to 30 June 2020.

Customs

• Customs clearance will operate 24x7 till 30 June 2020.

Board meeting and audit compliance

• FM Sitharaman said that the government will relax holding of board meetings for a period of 60 days till the next two quarters.
• The applicability of The Companies Auditors' Report Order 2020, which was supposed to have come into force in 2019-20, has been shifted to 2020-21.
• For newly incorporated companies, who are required to file a declaration on commencement within six months, an additional six months will be provided.
• If a company director does not comply with the minimum residency requirement, it shall not be treated as a violation.
• If independent directors cannot hold a single meeting in FY 2019-20, it not be treated as a violation.

IBC

• The threshold for default under IBC was raised from Rs 1 lakh to Rs 1 crore.
• Sitharaman said that the government may consider suspending Section 7, 9 and 10 of the Insolvency and Bankruptcy Code (IBC), at a later stage, if the current situation continues beyond six months.

Fisheries

• One-month delay will be condoned in the arrival of the consignment of fisheries.
• Import permits for fisheries expiring in April have been extended by three months.