Skip to main content

Only 70% file detailed return under GST in July

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

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…

RBI rushes in to prop up falling rupee

RBI rushes in to prop up falling rupee India’s central bank reportedly intervened in the currency markets on Monday to prevent a further slide in the local unit, which breached the 67 mark to a dollar for the first time in 15 months amid a widening trade gap and runaway import bills fuelled by high crude-oil prices. Some state-owned banks were seen selling dollars aggressively, interventions that market dealers attributed to the central bank’s strategy to stem the decline of the Indian rupee against the US currency. The rupee is the worst performing among a dozen Asian monetary units in the past three months. It lost 4.25 per cent to the dollar during the period, show data from Bloomberg. On Monday, the Reserve Bank of India (RBI) is said to have sold about Rs 800 million collectively on the spot and exchange traded futures markets, dealers said. An email sent to RBI remained unanswered until the publication of this report. The currency market has seen such a strong central bank interven…

GST Refund of Rs 20,000 Cr Pending: Exporters’ Body

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday. While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace. Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping companies not submitt…