Only 34% service taxpayers have moved to GSTN till now
The revenue department is stepping up its outreach programme, asking taxpayers to register with the GST Network by this month-end as only 34 per cent of the existing service tax assessees have so far migrated to the new payment portal.
There are atotal of 80 lakh VAT, excise and service tax assessees.
While over 75 per cent of VAT and 73 per cent of the central excise assessees have switched to the GST Network (GSTN), the figure for service tax is a meagre 34 per cent of the existing assessees.
"We are fast approaching the last date for completion of migration i.e. April 30, 2017. I urge all zonal Chief Commissioners to take necessary steps to assist all existing taxpayers in their migration to the new regime," CBEC Chairperson Vanaja N Sarna said in a letter to officers.
The zonal offices of the service tax department has started issuing advertisements in leading dailies, calling on the assessees to enrol and register with the GSTN immediately.
"Duty or tax credits under the existing laws cannot be carried forward in GST unless you enrol in the GST portal," the department said, adding that provisional ID and password will be available for assessees on the ACES portal.
It also asked taxpayers not keen on migration to the GSTN to confirm so by logging into the portal. "Your provisional ID and password would be cancelled and this may deny your credit migration to the GST regime," the department said. Out of the 80 lakh assessees, some may not require registration under GST as they are below the threshold of Rs 20 lakh for the levy.
At present, VAT and service tax assessees with turnover of Rs 10 lakh are required to get themselves registered with states and the Centre, respectively.
Hence, assessees with turnover of up to Rs 20 lakh need not register with the GSTN, and as per the estimate of the Central Board of Excise and Customs (CBEC), out of the 80 lakh excise, service tax and VAT assessees, 54 lakh have turnover below Rs 20 lakh.
However, if the dealers want to claim input tax credit, they will have to get themselves registered with the GSTN, the entity building the IT backbone for the goods and services tax.
The government plans to put into effect GST from July 1 and in the run-up to the new indirect tax regime, it has started migrating excise, service tax and VAT assessees to the new tax payment portal.
GST will subsume at least 10 levies, including excise, service tax, VAT and other local taxes.
Govt extends service tax return filing date to Apr 30
The Centre has extended the last date for filing service tax return by five days to April 30, in a relief to lakhs of service providers.
"The CBEC hereby extends the date for submission of form ST-3 for the period from October 1 to March 31, 2017, from April 25 to April 30, 2017," the apex policy making body of the indirect tax department said. Every registered service tax assessee has to file service tax return in form ST-3 on a half-yearly basis before the due date to avoid penalty.
For filing returns for the period April-September, the due date is October 25, while for October-March it is April 25. The Central Board of Excise and Customs said that the due date is being extended as the assessees faced "intermittent difficulties" in accessing the Automation of Central Excise and Service Tax website on April 25.