New Delhi: The rationalisation of late charges for delayed submitting of month-to-month GST returns will give relief to small companies and add to the federal government income, in accordance to tax specialists.
The GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, on Friday determined to come out with an amnesty scheme to present relief to taxpayers in late fee for pending returns.
The late fee for non-furnishing of GSTR-3B for July 2017 to April 2021 has been capped at Rs 500 per return for these taxpayers who didn’t have any tax legal responsibility.
For these with tax legal responsibility, a most of Rs 1,000 per return late charges might be charged, supplied such returns are filed by August 31, 2021.
Besides, the council has made it elective for taxpayers with turnover up to Rs 2 crore to file annual returns for 2020-21.
Also, the reconciliation assertion in Form GSTR-9C for fiscal 2020-21 may have to be filed by taxpayers with an annual mixture turnover of above Rs 5 crore.
EY Tax Partner Abhishek Jain stated, “Overall, it may be stated that the Council has duly thought-about the curiosity of the small trade gamers and supplied them with requisite reliefs, particularly since these companies had been most impacted due to the pandemic.”
AMRG & Associates Senior Partner Rajat Mohan stated it is a substantial relief in fee of late charges for non-filers of GSTR-3B.
“This one time Amnesty scheme will push up overall compliance, contributing extra funds in the exchequer,” he added.
Shardul Amarchand Mangaldas & Co Partner Rajat Bose stated the comfort in compliance-related measures ought to present non permanent relief to small and medium taxpayers.
“However, on an overall basis, the council has failed to address major pain points of the industry and the common man resulting from the pandemic,” Bose added.
Deloitte India Senior Director M S Mani stated whereas the amnesty scheme would considerably profit small companies, there’s a want to prolong the identical to different companies who could not have fulfilled their obligations due to the pandemic.
Athena Law Associates Partner Pawan Arora stated, though the council has allowed self-certification of Annual Reconciliation as a substitute of GST Audit from CA, taxpayers ought to overview their annual compliances to guarantee correct compliance.
Nexdigm Executive Director – Indirect Tax, Saket Patawari stated the compliance relief is probably going to profit round 89 per cent of the taxpayers.
“While all the Council recommendations may provide temporary reliefs to the taxpayers, some important aspects like the correction of duty inversion, entitlement to ITC vis-a-vis vaccination for employees, and extension in due dates for GST returns remain eluded,” he added.
Tax Connect Advisory Services LLP Partner Vivek Jalan stated that submitting GSTR 9 (annual return) is the final alternative a taxpayer will get to rectify any errors finished throughout the monetary yr and must be ready with nice care. The GST division could situation notices in case any inconsistency is detected by its Data Analytics Wing within the GSTR 9
