The presentation of the GST statement remains less than desired, the compliance of GSTR-3B is around 60%
NEW DELHI: Two years after the milestone tax on goods and services ( GST ) The analysis of the data showed that, when amalgamated with 17 different central and state collections, the presentation of statements under the new indirect tax regime continues to falter with presentations that show spikes every three months, but they are still lower than desired.
Also, compliance in filing summary sales return GST R-3B has not improved as of July 2017, as businesses continue to file after the monthly due date, with compliance averaging at around 60 per cent.
Analysis of data released by Goods and Services Tax Network (GST N) showed that while on an average, 50 per cent of the registered taxpayers GST R-3B within due date in July 2017, the number increased to around 85 per cent as on June 23, 2019
Likewise, 65 percent of taxpayers declared within the expiration date in July 2018, a total of 85 percent of eligible taxpayers submitted it on June 23, 2019.
Similar trend continued in April, with less than 60 per cent of eligible taxpayers filing returns in due date, and the total number of GST R-3B filed increased to nearly 80 per cent as on June 23, 2019.
While businesses have to file GST R-3B by the 20th day of the succeeding month, GST R-1 has been filed by the 10th day.
According to GST laws, the fee for late filing of the returns is Rs 25 per day for Central GST (C GST) and an equal amount under State GST (S GST).
However, those businesses have a tax return but have 'nil' tax liability would have to pay a fine of Rs 10 under C GST law, and an equal amount under S GST law.
An analysis of GST R-1 filing trend showed that final sales return filed by businesses spiked every quarter, reflecting that composition scheme dealers and small businesses file their returns. However, there is still a huge divergence in the number of businesses who are eligible to file GST R-1 and those who actually file it.
The data showed that while a little over 1 crore businesses were eligible to file GST R-1 as of March 2019, only a little over 65 lakh have actually filed it. Similar for December 2018, while about 1 crore businesses were required to file GST R-1, about 75 lakh have filed it till June 23, 2019.
In the current financial year, while around 55 lakh businesses were eligible to file GST R-1, about 25 lakh and 20 lakh businesses have filed the return in April and May, respectively.
The new indirect tax regime was rolled out on July 1, 2017. From just 38.51 lakh businesses registered under GST then, the number has gone up to whopping over 1.22 crore.