Late payment fees waived for delayed GST returns filing

Businesses were required to file the maiden Goods and Services Tax (GST) returns for July and pay taxes by August 25 by filing GSTR 3B. The final returns for sales for July are to be filed by September 5 and returns for purchases by September 10. In a circular, the finance ministry said late fee for all taxpayers who could not file GSTR 3B for July has been waived, but not the interest on late payment of dues.

As per the CGST and SGST Acts, an interest at the rate of 18 per cent will be levied for delayed payment of tax.

"Since the payment was not made on or before the due date, the registered person shall be liable for payment of interest on delayed payment of tax starting from August 26, till the date of debit in the electronic cash and/or credit ledger, but will not be liable to pay any late fee," the CBEC said.

The GST law provided for a nominal fee of Rs 100 per day on Central GST and an equivalent amount on State GST in case of late filing of returns and payment of taxes.

The Central Board of Excise and Customs (CBEC) also provided for correction of erroneous details furnished in form GSTR-3B.

Now, businesses who intend to make changes or amend the initial return (GSTR 3B) can do so at the time of filing final returns in forms GSTR-1 or GSTR-2, as the case may be.

"This will get reflected in the revised output tax liability or eligible ITC (input tax credit), as the case may be, of the registered person. The details furnished in form GSTR-1 and GSTR-2 will be auto-populated and reflected in the returns in form GSTR-3 for that particular month," the CBEC said.

In cases where the taxes paid as per the initial return filed in GSTR-3B is less than the amount due post reconciliation as per GSTR-1, the additional amount of tax can be paid by debiting the electronic cash or credit ledger.

However, interest on delayed payment of return will be levied on the amount of tax that was due.

Besides, the government has exempted businesses which have not filed GSTR-3B but will file final GST returns in GSTR-1, GSTR-2 and GSTR-3 from payment of late fees.

Interest would, however, be levied for delayed payment of tax.

Of the 59.57 lakh businesses that should file return for July, as many as 38.38 lakh taxpayers accounting for 64.42 per cent of the total businesses registered in July had filed their GST returns.

Taxes worth Rs 92,283 crore were collected in July from just 64.42 per cent of the total taxpayer base.

New Delhi: The government is monitoring implementation of the Goods and Services Tax (GST) regularly and teething issues are being resolved immediately, Minister of State for Finance Arjun Ram Meghwal said on Saturday.

Some technical issues with regard to tax payment have come to light and GST Network (GSTN) was directed to resolve them, he added.

Authorities are also keeping a tab on impact of GST on prices of various commodities. According to the minister, a team of 180 officials and 30 ministers is on the job.

"They are getting feedback from various districts and towns and trying to assess what kind of procedural difficulties businesses are facing. Procedural issues are sorted out by tax authorities as and when they arise," he said at an event organised by PHD Chamber.

GST –touted by PM Narendra Modi as 'Good and Simple Tax' –was rolled out on July 1.

Meghwal ruled out instant policy measures to legalise introduction of crypto currency for security and commodities related transactions in Indian context pointing out though that a Committee has been set up to examine the pros and cons on the subject.

"The majority public view, however, on introduction of crypto currency in capital and commodities markets transaction is in the "negative" as of now as even Parliament in the recent past has been flooded with questions on the issue. The committee set up by the finance ministry on the issue though is weighing its consequences," he said. On GDP growth, he said manufacturing was hit in June because of destocking in light of GST implementation from July 1.

The growth slumped to a three-year low of 5.7 per cent during April-June –lagging China for the second straight quarter –as manufacturing slowed ahead of the GST launch amid demonetisation effect.