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July GST return filing: Govt waives Rs 200 per day penalty

The taxpayers will, however, have to bear the interest on late payment of dues

IANS  |  New Delhi 

GST returns. Illustration: Ajay Mohanty
GST returns. Illustration: Ajay Mohanty

The government, on the recommendations of the Goods and Services Council, has waived the penalty of Rs 200 per day for taxpayers who failed to file the first returns within the deadline.

The taxpayers will, however, have to bear the interest on late payment of dues, the said on Saturday.

"Late fee for all taxpayers who could not file GSTR-3B for month of July has been waived, but not the interest on late payment of dues. Interest will be applicable to all taxpayers who have not discharged their complete liability for July by August 25," said in a tweet on Saturday.

The taxpayers had to file the returns for July by August 25 and those claiming transitional input credit by August 28.

Earlier, Finance Minister Arun Jaitley had said that the taxpayers who failed to meet the deadline will have to bear a penalty of Rs 200 per day -- Rs 100 for Central and Rs 100 for State

A total of about 5.95 million taxpayers for July should have filed the returns, but till August 29 only about 3.83 million (or 64.42 per cent) had complied, Jaitley had said earlier. Thus, the remaining 2.1 million taxpayers were facing penalty for late filing.

The in a circular on Friday evening also said that the taxpayers who might have made errors in filing the first returns could make corrections while filing the GSTR-1 and GSTR-2 forms for the month of July.

Form GSTR-1 reflects sales of a business while GSTR-2 reflects purchases.

For July, GSTR-1 needs to be filed between September 1 and 5 and GSTR-2 between September 6 and 10.

The circular stated that there would be a reconciliation of the forms to see if there was any mismatch and the under-reporting or excess-reporting of the would thus be corrected.

The corrected data would be auto-populated and reflected in GSTR-3, which is a combination of sales and purchases. GSTR-3 for July needs to be filed between September 11 and 15.

In case there was additional liability for July, the taxpayers should submit the additional payment with interest.

In case there was reduction in liability, the excess input credit would be carried forward to the next month's return and if there was additional input credit, additional credit would be made available, the circular stated.

"It may be noted that the circular is silent on cases where there is excess payment of in cash and whether the same could be carried forward to the next return and how," expert Pritam Mahure told IANS.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, September 02 2017. 14:24 IST
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