Filing GST returns a must, even if there is no transaction to show: Adhia

Speaking at BS GST Round Table 2017, the revenue secretary urged 1.1 mn people who were yet to complete the GST process to complete it as soon as possible

Speaking at the Business Standard GST Round Table 2017 on September 6, Revenue Secretary Hasmukh Adhia made it amply clear that all businesses in the country needed to file GST returns, even if there was no taxable income and warned that a penalty would be charged in case of non-compliance. "The facility of 'Nil' returns is available in GSTR 1 form. So, even if there is no transaction, business is liable to file returns. So file your return on time, don't wait for the last day," Adhia said.

GST compliance for the month of July stood at 74%, he said.

Admitting that there were initial hiccups and glitches, he said that the implementaion has been smooth so far. "No achievement in the world is possible without the costs attached to it. There will be problems in the first six months. But the important thing is that the government is ready for a course correction."

The Revenue Secretary sounded optimistic that the GSTN systmem will work more efficiently in the coming days. "There was a problem in the design of 3B software. Some people made mistakes while filing returns and there was no provision of a review. So, they couldn't withdraw the form. But we didn't charge the penalty," he said.

Adhia also urged the 1.1 million taxpayers who were yet to fully migrate to the new system to do so as soon as possible.

Here are key takeaways from Adhia's address at BS GST Round Table, 2017: 

 

All 8.6 million VAT, excise, service tax registrants are registered with GSTN

 

After removing overlapping, 7.2 million people have finally migrated to GST regime

 

Only 1.1 million of the 7.25 million are yet to fully migrate by filling Part B

 

If you have a business turnover subject to GST, don't neglect filing returns. After 6 months, penalty will be charged.

 

Tax net has widened by 30% with the introduction of GST

 

74% of those who are supposed to file returns had done so till the end of August

 

If over 80,000 people log in together, people are asked to wait and be in queue

 

 Whatever dates we are giving for filing returns is because we have been forced to extend last dates

 

There is scope for expansion tax net. We are willing to do course correction


State governments should reduce taxes on petroleum products. If states are keen to retain manufacturers they should cut taxes on petroleum.