Merchant exporters get CBIC relief for shipment obligations

In a relief, the tax department has allowed merchant exporters to meet their shipment obligations by June 30 for goods they were required to export during March 20 to June 29 period.

Under the GST law, merchant exporters are required to export goods procured domestically within 90 days from the date of issuance of tax invoice by a registered supplier.

In a set of clarifications issued, the Central Board of Indirect Taxes and Customs (CBIC) said as per a notification the time limit for compliance of any action by any person which falls during the period from March 20 to June 29, 2020, has been extended up to June 30, 2020.

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“Accordingly, it is clarified that the said requirement of exporting the goods by the merchant exporter within 90 days from the date of issue of tax invoice by the registered supplier gets extended to June 30, 2020, provided the completion of such 90 days period falls within March 20 to June 29, 2020," the CBIC said.

AMRG & Associates Senior Partner Rajat Mohan said, “This extension is given keeping into mind the ongoing lockdown due to COVID-19 pandemic.”

A nationwide lockdown was imposed on March 25 to contain the spread of coronavirus and this has now been extended till May 17.

The CBIC clarification also said Interim Resolution Professional or Resolution Professional under the Insolvency and Bankruptcy Code (IBC) are required to take separate GST registration within 30 days, and this period has now been extended to June 30, 2020.

Further, it is also clarified that if a different IRP/RP is appointed midway of the insolvency process then a new registration is not needed but only a change in Authorised Signatory will suffice.