Skip to main content

Only 70% file detailed return under GST in July

By
Only 70% file detailed return under GST in July
Deadline ends,after two exdtenions; govt assess reasons for low rate of compliance
About 70 per cent of the assessees under the goods and services tax (GST) had filed detailed sales returns for July as on Tuesday, the official deadline.Low compliance, said officials.No further extension was given; the deadline had been extended twice earlier.About 4.59 million entities of the eligible 6.5 mn filed the GSTR1 return, for the first month of GST. “We will assess why many people have not filed. We have already sent reminders to those who filed GSTR3B, the summarised return form, but not GSTR1,” saidaGST Network GSTN) official.
The deadline to file GSTR1 was extended by a month from September 10 at the GST Council meeting last month in Hyderabad.Earlier, the deadline was extended from September 5 on account of technical issues with GSTN.If a taxpayer fails to file GSTR1 by the deadline, the buyer of his products would face difficulty in availing of input tax credit.
Which is why, noted Pratik Jain, partner at consultancy PwC, the number of GSTR1 returns are much lower than what one would have expected.It is possible many dealers with GST registration have nil turnover and, hence, did not file the return.“The government will have to investigate the reasons and take corrective steps,” he added.Three million returns had been filed as of September 10, the day after announcement of the extension.
About 1.5 mn more returns were filed after that.GSTR1 has 13 sections containing details of sales transactions of a registered dealer for a month.Alittle more than 330 mn invoices were filed and processed by the GST system along with the GSTR1 of July. Of this, 73 per cent were uploaded using the Offline Tool developed by GSTN; 16 per cent of the invoices came through GST Suvidha Providers.
The inward supplies return or GSTR2 for July has to be filed by October 31. And, GSTR3 for the month by November 10. Once a taxpayer files GSTR1, the government utilises the information to verify GSTR3 for the dealer and GSTR2A for dealers to whom supplies have been made.For the transition period, the government has allowed assessees to file self summary returns for input-output, called GSTR3B.
The lower than expected GSTR3B returns filed in the first two months of GST implementation had prompted revenue secretary Hasmukh Adhia to ask central and state commissioners to urgently conduct a survey to know why. Only about 64 per cent of those eligible filed GSTR3B, for August; 84.2 per cent did so for July. Of the 7.3 mn eligible ones, 4.7 mn filed the summarised return for August.The questions suggested in the survey on why GSTR3B was not filed are: The site was not functioning, filing process was too complicated, system didn´t allow me to file nil return and ´could not´ preview return details before filing returns.
In addition, tax officers will take suggestions for improving the returns filing process.Last week the gst council,chaired by union finance minister arun jaitley,eased compliance rules for small and medium enterprises.Those with annual turnover up to Rs 1.5 crore will from october onward ned to quarterly,not monthly.it is also raised the eligibility limit  in terms of annual turnover to Rs 75 lakh for the composition scheme,which allows a flat rate and easy compliance. The window will be open till March 31 next year.Assessees are requirwed to file and pay taxes only quarterly under the composition scheme. A trader pays at 1 percent,a manufacturer at 2 percent and a restaurant owner at 5 percent but they are not allowed input tax credit.About 90 percent of tax payers under GST have annual turnover up to  Rs 1.5 crore.
The Business Standard, New Delhi, 12th October 2017

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more