New Delhi, June 19: After the 17th Goods and Services Tax (GST) council meet, GST council announces return filing breather to traders for two months. As per the revised return filing timeline decided by the Council, for July, the sale returns will have to be filed by September 5 instead of August 10. Companies will have to file sale invoice for August with the GST Network by September 20 instead of September 10 earlier.
Ministry of Finance said that with the objective of ensuring smooth rollout of GST and taking into account the concerns expressed by the trade and industry regarding filing of the returns in GST regime, it has been decided that, for the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month.
* Facility for uploading of outward supplies for July, 2017 will be available from 15th July, 2017.
No late fees and penalty would be levied for the interim period. This is intended to provide a sense of comfort to the taxpayers and give them an elbow room to attune themselves with the requirements of the changed system. This not only underlines the government’s commitment towards ensuring that all the stakeholders are on board but also provides an opportunity to the taxpayers to be ready for this historic reform, Ministry added.
Union Finance Minister Arun Jaitley said that the new indirect tax regime will start from July 1. There were concerns raised by business firms citing unpreparedness to comply with the new GST reforms.
We don't have luxury of time to defer implementation of GST. The Council decided categorically it will be implemented from July 1 onwards. To obviate any lack of preparedness, a slight relaxation of time for two months has been given and from September, strict adherence to time will go on" the FM said.
The Finance Minister also said that GST network will take four to five months to prepare E-Way Bill. He added that it was decided in the meeting to have further deliberations on E-way Bill as Council had two opinions. He said having IGST on shipping vessels at 5 percent is still a pending issue.
The Council decided to raise the threshold for the 28 per cent tax to 7,500 rupees from 5,000 rupees at present. He said, an 18 per cent GST will be levied on bills of 2,500 rupees to 7,500 rupees. Council gave its nod to tax lotteries in two segments with state-run ones attracting 12 percent GST and the state-authorised 28 percent.
The council cleared six rules which include the rules related to anti-profiteering. Till now rates of more than 1200 goods and 500 services have been fixed. In its last meeting, the Council reduced tax rates on 66 items. More than 6.5 million businesses have already signed up for the GST which is 81.1 per cent of the total number.
GST, the single tax regime, will benefit consumers and attract private investment also replace multiple state and central taxes to create one national market. This bill seeks to subsume all central indirect levies like excise duty, countervailing duty and service tax and also state taxes such as value added tax, entry tax and luxury tax, to create a single, pan-India market.
Notably, Services like religious pilgrimage, healthcare, education, skill development and journalistic activities will remain tax-free under the GST regime. Crude oil, petrol, diesel, aviation turbine fuel (ATF) and natural gas are also being kept out of GST net.