Sikar Tax Bar Association, Sikar
(Affiliated with RTCA, Jaipur)

Date: 29/04/2022

To,
Smt. Nirmala Sitharaman
Chairman, Goods and Service Tax
Council and Hon'ble Union Minister of Finance,
Ministry of Finance, Government of India,
North Block, New Delhi – 110001

Subject: Request to extend the due date of filing of annual statement in form GSTR-4 for financial year 2021-22.

Respected Madam,

We, Sikar Tax Bar Association, Sikar (STBA), is an Association of professionals consisting of Tax Consultants, Advocates & Chartered Accountants who are practicing in taxation, corporate and other allied laws.

Respected Madam, we the STBA has always raised the issues concerning GST not only for the cause of professionals but for Trade and Industry too and for ease of Revenue as well. Besides this we also try to educate the professionals, stakeholders on GST by way of various seminars, webinars, lectures, discussions etc. Our strong motto is 'Lets Strive Together for Progress' and we strongly support the endeavor of Government viz. 'Sabka Saath Sabka Vikaas'.

Request for extension of date for filing GSTR-4 :

Respected Madam, as we know 30th April, 2022 is the due date to file annual return by the registered person under composition scheme in Form GSTR-4 for the financial year 2021-22. Madam, the time of only one month given to file annual return for such registered person is very very short and seems to be bit irrational. Madam, the books of accounts can not be finalized by 30th April. Madam, under Income Tax Act, the due date to file TDS Return for quarter ending 31st March, 2022 is 15th May, 2022 and it takes further time for the TDS to be updated in Form 26AS of the respective deductees. Moreover, Madam, the due date of filing Income Tax returns by the persons whose accounts are not to be audited is 31st July, 2022 and in case whose accounts are to be audited it is 30th November, 2022.

Moreover, Madam, the due date to file Annual Return by the regular taxable person in Form GSTR­9 is 31st December following the end of relevant financial year.

Respected Madam, in the latest Union Budget presented by your good self, the Government was fair enough in rationalizing certain due dates under GST to bring the same in align with other dates under GST as well as under Income Tax. However, somehow, the rationalization of due date to file GSTR-4 was omitted to be rationalized.

Thus in order to bring harmonization and rationalization, Your Honor is most humbly requested to kindly extend the due date for filing of GSTR-4 to 31st December, to bring in align with Annual Return by regular taxable persons or at least till 31st July to bring it in align with due date for filing income tax return by small taxpayers.

Respected Madam, as the taxes are already paid quarterly by the registered persons under Form CMP 08, extension of date will not affect the Revenue, in any manner. Rather such extension will bring rationalization of dates and will help in ease of business.

Waiver of late fee for fling of GSTR-4 for F.Y. 2019-20 and 2020-21

Respected Madam, to file GSTR-4 for financial year 2021-22 it is imperative on the part of registered person that the GSTR-4 for earlier years i.e. 2019-20 and 2020-21 must have been filed. Madam, in this regard, it is respectfully submitted that many registered persons have not filed GSTR-4 for the years 2019-20 and 2020-21 due to various reasons. One reason is that there was some technical difficulty in filing of same on portal regarding JSON utility, the other reason might be that the registered persons were under mis-conception or mis-understanding that as the Government has relieved the small taxpayers having turnover upto 2 crores need not to file Annual Return and the same exemption or relaxation is applicable on them also. Madam, there was no intention of such registered persons to default or not to file GSTR-4 as they had already paid the due taxes and nothing was due to be paid at the time of filing GSTR-4, it was just a compilation of CMP-08 of all the four quarters already filed and data already available with the department. Madam, with all due respect, it is hereby reiterated that as all the taxes are already duly paid by the registered persons on quarterly basis by filing CMP-08 on regular basis, the revenue is not involved generally in GSTR-4. Madam, we are pretty sure that the intention of the Government is never to collect the penalty by any means but to ensure due compliances and payment of due taxes.

Moreover, Madam, kindly apprehend one more aspect that most of the registered persons required to file GSTR-4 are very small taxpayers, who are neither so much literate or aware of law nor they are so well financially sound that they can hire the services of good accountants and tax professionals.

Your worthy is therefore requested to kindly waive off the late fee for filing of GSTR-4 for the years 2019-20 and 2020-21.

Rationalization of late fee :

Respected Madam, the late fee prescribed for late filing of GSTR-4 for FY 2019-20 and 2020-21 is prescribed at Rs. 200 per day subject to maximum of Rs. 10000/- (CGST 5000 + SGST 5000). However, the CBIC vide Notification No. 21/2021 Central Tax dated 01.06.2021 partially waived off the late fee for late fee of filing of GSTR-4 for financial year 2021-22 onwards and the maximum late fee was restricted to Rs. 500/- in case of Nil returns and Rs. 2000/- (CGST 1000/- + SGST 1000/-) in other cases.

We humbly request to kindly waive off the late fee for late filing of GSTR-4 for FY 2019-20 and 2020- 21 or alternatively to extend the above said notification dated 01.06.2021 to financial years 2019-20 and 2020-21 also for the sake of rationalization.

We hope the Government will definitely consider our request in the interest of trade and industry. Thanking you in anticipation of your act of kindness and cooperation.