1st IMPLICATION : DEMAND AND RECOVERY (SECTION 73 AND 74 OF CGST ACT) :
Proper officer can issue the order u/s 73 and 74 within 3/5 years of due date of annual return respectively. As the due date of annual return is extended to 30th Nov, 2019 for F.Y. 2017-18, so the department gets the additional time due to extension of due date.
Had late fees waived instead of extension of due date, the period of issuance of order would not have been stretched accordingly. So, for F.Y. 2017-18 the order u/s 73 and 74 can be issued till 30th Nov, 2022 and 30th Nov, 2024 respectively.
2nd IMPLICATION : PERIOD OF RETENTION OF ACCOUNTS (SECTION 36 OF CGST ACT) :
As per section 36 of CGST Act, books of accounts or other records u/s 35(1) are required to be retained till 72 months from the due date of furnishing of annual return. With the extension of due date of annual return for F.Y. 2017-18, the books of accounts and other records for F.Y. 2017-18 u/s 35(1) shall have to be retained by every registered person till 30th Nov, 2025.
3rd IMPLICATION : DUE DATE OF ITC [SECTION 16(4) OF CGST ACT] :
After having the decision of AAP & Co. Vs Union of India in Gujarat HC, it is clear that GSTR-3B is not the return u/s 39. And so, in absence of return u/s 39, the due date of annual return will be the determining factor for due date of ITC. So with this extension of due date for F.Y. 2017-18, the due date for claiming the ITC for F.Y. 2017-18 is now 30th Nov, 2019.