The government, on recommendations of the Goods and Services Tax Council, has decided complete penalty waive off of Rs. 200 per day for all taxpayers who failed to file their first Goods and Services Tax returns within the stated deadline.
The notification stated that ‘Late fee for all who could not file GSTR-3B for month of July has been waived off but interest as stated would remain applicable. ‘As per tweet of Finance Minister Arun Jaitley ‘Interest would be applicable to all taxpayers who have not discharged their complete Goods and Services Tax liability for July by 25th August’ it held confirmation of penalty waive off to the media.
Earlier, the Finance Minister reported a penalty Rs 200 per day for all taxpayers who failed to meet the deadline being Rs 100 for Central Goods and Services Tax and Rs 100 for State Goods and Services Tax. While data analyzed for filed returns till 29th August totaled to 5.95 million taxpayers out of which 3.83 million successfully complied the payment but remaining 2.1 million were left facing late penalty, as verified by Finance Minister Jaitley.
The GSTR-1 needs to be filed till September 1 and 5 reflecting sales of business while GSTR-2 is due dated to 6 to 10th September reflecting Purchases . Releasing a dedicated circular for the issue Finance Ministry said taxpayers who made mistakes in filing their Goods and Services Tax returns of July Period can re-correct them by reconciling to any mismatch, under reporting or excess reporting of values .The reported corrections will stand auto populated to GSTR-3 being combination of sales and purchases to be filed till September 11 and 15.
As the circular remain silent on cases of excess payment of Goods and Services Tax & forwarding of excess cash to next return, it prompted for cases like additional tax liability for July to be paid with interest etc. The circular sited cases of reduction in liability saying excess input credit would be carried forward to next month’s Input credit and will be adjusted in coming period returns.