GST update: Businesses given "elbow room", return filing rules relaxed
The biggest tax-reform in India's 70-year history is set to start from July 1 and as the government is running its final lap, it's making certain allowances to make sure that everybody is on board the new regime. FinMin Jaitley has now okayed filing of late tax returns for the first two months to give more time to businesses. Here's all about it.
A suitable compromise
Several business lobbyists have asked for a delay in GST roll out so that they can get their affairs in order and be fully GST ready. While the government is not going to postpone the date it has, however, agreed to let firms file late returns for July and August, giving them "a slight relaxation of time"; an apt compromise between both parties.
All ready, except West Bengal
According to the relaxation, businesses will get until July 20 to submit their tax with a simple return without having to pay any late fee or penalty; for those, seeking to register under GST or migrating from old taxing system, authorities will open the registration window from June 25. Except for West Bengal, which has passed an ordinance, all states are now GST ready.
Reason for the extension
GST compliance will require a complete overhaul of the current business processes of large companies and small-time traders, who previously shied away from technology, would have to understand the nitty-gritty of the new regime. This extension would give them an opportunity to have a dry run before real filing begins and also to make their businesses GST ready, if they haven't done it already.
Tax slab of lotteries fixed
GST Council has agreed to raise the threshold from Rs 5,000 to Rs 7,500 for 28% tax slab in AC hotels and 18% tax slab has been designated for bills within Rs 2,500-7,500. Lotteries have been broken down into two segments; state-run lotteries will be in 12% GST slab, while state-authorized ones will get into 28% bracket. It's also cleared six rules including anti-profiteering.
