The deadline for filing the first monthly return for the Goods and Service Tax (GST) expires at midnight on Friday. The GST Act has passed in the Lok Sabha on 29th March 2017 and came in to effect from 1st July 2017.
GST is the new indirect tax regime that merges many state and central taxes, including Excise duty, Service Tax, and VAT. Maiden tax collections under the GST system have seen over 29.64 lakh returns.
Tax practitioners have urged the government to grant more time for filing tax returns and invoices for July. As the site crashed last week, the government postponed the tax filing deadline by five days to 25th August. Unfortunately, more time is wanted by the tax payers.
Pratik Jain, partner and leader of indirect tax practice, PwC India, “Given the number of issues that businesses are still facing, it might be desirable to extend the deadline to file not only GSTR 3B but also other returns due in September.” According to the reports, by 2 pm on Friday, 2.93 million assesses had filed returns on the portal of GSTN, the company that processes GST returns.
Until August 23rd, about 48 lakh taxpayers had saved the sales data on the portal, and they are stepping away from paying taxes and filing returns. An estimated amount Rs 50,000 crore had come in taxes from those returns.
Dr Amit Mitra said, “I had repeatedly said please postpone the launch of July 1, the impact is everyday postponements, they are saying that GSTN (Goods and Service Tax Network) could not take the load, this is what I had predicted, but they did not pay heed to that.”
GSTN had urged businesses to file return ahead of the deadline to avoid difficulties. “Uploading of invoices is a simple process at the GST portal and should be completed early to avoid delays that are usually witnessed on the last day.”