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 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


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…