Finance Minister Nirmala Sitharaman has said that the government has raised the threshold for invoking insolvency under the Insolvency and Bankruptcy Code (IBC) to Rs 1 crore from the existing Rs 1 lakh with a view to prevent triggering of such proceedings against small and medium enterprises that are facing currently the heat of coronavirus pandemic. She said the government will also consider suspending Sections 7, 9, 10 of the IBC for six months if the current situation following the outbreak of COVID-19 continued beyond April 30, 2020.
Sitharaman said the government also extended the deadline for filing GST returns for March-May to June 30. On late filing of GST returns, she said no late fee, penalty or interest will be charged for companies with turnover of up to Rs 5 crore. She noted that for companies with more than Rs 5 crore turnover, no late fee and penalty will be charged on GST return filed by 15 days and a reduced interest rate of 9 per cent will be charged.
The minister further said 'Sab ka Vishwas' indirect tax dispute redressal scheme has also been extended to June 30 and no interest on payment made till June 30 will be charged. Additionally, she said the government relaxed company provisions including that of mandatory holding of board meeting and filing of return by newly incorporated companies.