GSTR-1: Return filing deadline extended to October 10

Hyderabad: The 21st meeting of the Goods and Services Tax (GST ) Council, the highest decision-making body of the GST, on Saturday extended the deadline for filing of sales return (GSTR-1), which was to end on Sunday, by a month to October 10. "Since the work is huge, the Council decided a new schedule itself for filing returns. Because of the load on the system, we want to give adequate time to taxpayers," Finance Minister Arun Jaitley told reporters after the meeting.

"There are transient challenges in technology. The Council decided to appoint a committee, the composition of which will be announced in a day or two. It will consist of ministers who will interact with GST to ensure a smooth transformation," he said.

The decision was taken after the Council reviewed the functioning of the GST Network (GSTN) platform. A detailed presentation was given to the members by GSTN officials. Jaitley said the portal did face technical glitches on two-three occasions due to overload.

The GST rates on 30 items of mass consumption were slashed while the cess on mid and high-segment cars went up as the Council formed a five-member Committee to sort out technical glitches faced on the return-filing portal while the last date for GSTR 1 has been extended by a month. Jaitley said that in consonance with the recommendations of the fitment committee, the tax rates on approximately 30 goods of common man's utility, including raincoats, rubberbands and batter for idli and dosa, have been reduced. Khadi fabric through Khadi and Village Industries Commission Act of 1956 (KVIC) stores will now be exempted under GST.

Talking about the increase in cess rates on automobiles, he said that while status quo has been maintained for small cars (petrol and diesel), hybrid cars and 13-seater vehicles, the Council decided to increase the cess rates for some segments. GST cess on mid-segment cars has been increased by 2 per cent, for large segment cars it has been increased by 5 per cent and for SUVs by 7 per cent, he said.

The minister said in view of the GST filing portal encountering increasing technical glitches, the Council has decided to set up a five-member ministerial panel to oversee its functioning and smoothen the process.

West Bengal Finance Minister Amit Mitra announced on Saturday that the Goods and Services Tax (GST) Council has exempted artisans and folk artists with an annual turnover of up to Rs 20 lakh from registration under GST. Besides exempting artisans, the 21st meeting of the highest decision making body of the GST exempted clay idols from the tax. Also, no registration would be required for inter-state job works, added Mitra.

"For artisans, artists, folk arts and tribal arts, no registration will be required up to Rs 20 lakh (turnover). Clay idols are exempt now," he said, adding that "job work inter-state, you don't need any registration now up to Rs 20 lakh turnover." On government work contract, the tax rate has been reduced to 12 per cent from 18 per cent. "That will save government a lot of tax."

Jammu and Kashmir Finance Minister Haseeb Drabu said the deadline for filing of sales return or GSTR-1 for the month of July, the first month of implementation of the new tax regime, has been extended by a month to October 10. On the functioning of GSTN, he said it "is a real concern. We have acknowledged that it is a concern. An inter-ministerial group has been formed in-principle. The Chairman (Finance Minister Arun Jaitley) has been authorised to select ministers. A group of ministers will be formed and they will talk to GSTN and private parties."

On revenues accruing to states in the first month of the GST, Drabu said he does not "see a pattern right now in it. This time there will be a lot of backlog. Let it stabilise for one cycle". Goa State Panchayat Minister Mouvin Godinho said the 18 per cent interest levied on delayed filing of returns has been waived.