Skip to main content

Nearly 3 million GST returns filed in August

Nearly 3 million GST returns filed in August
As many as 2.97 million assessees have filed the summary input-output return under the new goods and services tax (GST) for the month of August (‘GSTR 3B’), much less than the 4.6 million that came for the month of July.
As many as 46 per cent of filers — 1.37 million — submitted returns on Wednesday, the deadline for doing so.
However, the July returns had risen after an extension of five to eight days was given to assessees, depending on whether they wanted to claim input tax credit for pre-GST stocks or not. The GST Network (GSTN), the entity handling the information technology backbone for the new structure, is hopeful that return filing would equal the tally of July.
Even if the same number of filers are there for the month of August as in July, proportionately it would be much less. This is so because there were only 5.95 million registrations under the GST in July, excluding those opting for the composition scheme. Now, a little over nine million businesses have registered under the GST. Of this, around one million was for the composition scheme; these may file quarterly returns.
Taxes to the tune of Rs 95,000 crore were collected in the maiden month of the roll-out. The central GST (CGST) and state GST (SGST) laws mandate an interest levy at 18 per cent for delayed payment of tax. And, Rs 100 a day will be levied for SGST and CGST each for filing late returns.
Bolstered by the August number and the fact that the system did not crash despite the last-minute rush, except for stray incidents, GSTN Chairman Ajay Bhushan Pandey said this showed the system’s robustness. Having taken charge earlier this month, he said the network was in a “very sound state", and the number of returns were testimony to this.
He said the GSTN accepted up to 85,000 returns an hour on Wednesday, the the last day to file a GSTR-3B for August.
About 75 per cent of the registered businesses had not filed their returns until then. As many as 1.37 million of these entities had flocked the GSTN portal on Wednesday to do so, the highest in a day under the GST so far.
“Though our system can take the load, it is in the interest of businesses not to wait till the last moment because there could be some problem at their end or their computer might not work," Pandey said.
The GST Council had earlier this month constituted a Group of Ministers under Bihar’s Deputy Chief Minister, Sushil Modi, to address issues faced by businesses while filing returns and paying taxes on the portal. After its first meeting last week, Modi had said 25 issues were identified and there would be visible changes on the GSTN portal in a week to 10 days.
GSTN accepted up to 85000 returns per hour on wednesday, which was the last day of filing GSTR-3B for August About 75% of the registered business had not filed their returns until september 20.
According to the central gst and state GST Acts,an interest at the rate of 18% will be levied for delayed payment of tax and filling of returns.
The Business Standard, New Delhi, 22th September 2017


Popular posts from this blog

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

New money laundering norms stump jewellery sector

New money laundering norms stump jewellery sector Dealers with turnover of Rs 2 crore and above covered; industry says threshold too low The central government has notified the money laundering rules for the gems and jewellery sector with immediate effect. Now, any entity deals in precious metals, precious stones, or other high-value goods and has a turnover of Rs 2 crore or more in a financial year will be covered under the Prevention of Money Laundering Act, 2002 (PMLA, 2002). The limit of Rs 2 crore would be calculated on the basis of the previous year’s turnover, said the notification. The directorate general of goods and service tax intelligence has been appointed under the Act. Sources said the government’s move to apply the PMLA to the jewellery sector was a fallout of income-tax raids on jewellers soon after demonetisation last November, when it was found that they sold gold and jewellery at a huge premium and accepted old currency notes as payment. The notification, issued on Augus…

Confusion over branded food GST

Confusion over branded food GST The GST Council's statement over the weekend on applying tax on branded food items has left most of the trade confused.

Even though the Council has not changed the rates on food -0 per cent on unbranded stuff and 5 per cent on brands -many small traders who didn't levy GST earlier said they could come under the 5 per cent slab after the clarification.

While they predicted some increase in consumer prices, large players said they can absorb GST in many ways and keep prices steady.

"Trade is confused and hence on behalf of our chamber, we have asked our members to go ahead and charge 5 per cent GST," said Sushil Sureka, general secretary of the Ahilya Chamber of Commerce and Industry in Indore.

The statement clarifying the application of GST came after some businesses were found deregistering their brands and selling under corporate brand name without paying tax, after the Council exempted unbranded food from the new all-encompassing indirec…