The government has waived off the penalty for delayed filing of initial returns under goods and services tax (GST) for August and September, giving a major relief for small and medium enterprises (SMEs), which are the most affected by the hasty implementation of goods and services tax (GST) GSTR-3B. Not just that, those who have paid the late fee will be credited it back.
Finance Minister Arun Jaitley announced this on Twitter.
To facilitate taxpayers, late fee on filing of GSTR-3B for Aug&Sept has been waived. Late fee paid will be credited back to taxpayer ledger.
Businesses have not been able to file returns due to a myriad of reasons including slowing down of the information technology (IT) backbone, GST Network (GSTN). A late fee was charged, which was in most cases more than the company’s tax liability, according to a press report.
The government had earlier waived late fee for delayed filing of the maiden returns for the month of July under the GST regime.
To facilitate taxpayers, late fee on filing of GSTR-3B for Aug&Sept has been waived. Late fee paid will be credited back to taxpayer ledger,” Jaitley informed.
On October 20, Ajay Bhushan Pandey who is Chairman of GST Network had said by noon that day as many as 33 lakh GST returns for September were filed. He had also informed back then that 75,000 sales data were being uploaded on the GSTN portal on an hourly basis.
The deadline for filing the initial returns in GSTR-3B for September under the Goods and Services Tax regime was October 20 midnight, news agency PTI had reported back then.
In an interview to PTI, Pandey had said the GSTN system was stable and was handling data at just 30 per cent of its capacity with 20 lakh returns being uploaded in past two days.
“As many as 33 lakh returns have been filed till noon. The pace of filing is picking up with an average 75,000 returns being uploaded on an hourly basis. GSTN system is stable. We hope more people are able to file return within the due date,” Pandey explained.
Businesses have been demanding that the government waives penalty for delayed filing of 3B returns.
As per the data, 55.87 lakh GSTR-3B returns were filed for July, 51.37 lakh for August and over 42 lakh for September. Preliminary returns GSTR-3B for a month is filed on the 20th day of the next month after paying due taxes.
As per the data with the GST Network (GSTN), a huge chunk of businesses file their returns after the expiry of the due date.
While only 33.98 lakh July returns were filed till the due date, the number has now gone up to 55.87 lakh. Similarly for August 28.46 lakh returns were filed till the last date, but the figure went up to 51.37 lakh later.
Also for September while 39.4 lakh returns were filed by the due date, the number is rising and was over 42 lakh till Monday.
The GST law provides 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 waiver of late fee on delay in filing GSTR 3B is a welcome step from the Finance Minister. Given that GST is a new law and tax payers are still getting used to it coupled with GSTN related issues, this waiver was clearly warranted,”
Source : With Inputs from PTI
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