Published: Mon, June 19, 2017
Culture | By Stewart Greene

July 1 rollout firm, deadline eased to file GST returns

July 1 rollout firm, deadline eased to file GST returns

Jaitley said companies will be allowed to file late returns for the first two months so that they can adapt to a new online filing system.

Jaitley today responded by stating, "To obviate any lack of preparedness, a slight relaxation of time for two months - July-August - has been given".

The Goods and Services Tax (GST) is set to be implemented from July 1.

Companies will have to file a sale invoice for August with the GST network by September 20, instead of the earlier September 10.

Union Minister for Finance and Corporate Affairs Arun Jaitley and Revenue Secretary Hasmukh Adhia at the 17th GST Council Meeting at Vigyan Bhawan in New Delhi.

Meanwhile, the Council raised the ceiling for hotel rooms attracting the highest tax rate of 28%- rooms costing more than Rs 7,500 per night will now be taxed at 28% compared to Rs 5,000 and above earlier.

GST will be imposed at a rate of 10 per cent on the value of the supply.

The GST Council on Sunday also decided on a two-slab structure for taxing lottery tickets. The Council claimed the relaxation was given to avoid any grievances or lack of preparedness. "We would appeal to all to keep their papers ready and do it in time", he said.

Customs Department director-general Datuk Subromaniam Tholasy said the decision to cancel the order, which would have seen over 60 food items subjected to the tax, was made after obtaining feedback from the Finance Ministry.

Also, as per the norms, the anti-profiteering provision will have a sunset date of two years. "It will give the industry the much needed time to align their IT systems and integrate with the GSTN", said Abhishek Jain, tax partner at EY India, which is also a GSP.

"It was decided that there will be further deliberation which will continue on the e-way bill rules and after consultation, once consensus is reached and formulate one opinion, we will frame the rule", he said.

CREDAI also highlighted that availing input tax credit may not be feasible under GST, thus limiting the capacity of developers to absorb the additional tax burden or pass on the benefits to homebuyers. It would forward the complaint to the Directorate of Safeguards (DGS) for investigation, which is likely to take about 2-3 months to complete the inquiry. Till then, an alternate rule authorising states to continue using existing systems for road permits shall be put in place.

Jaitley said the the council will meet again on June 30, the eve of the launch, and hold consultations on e-way bills.

The all-powerful GST Council cleared the rules, decided tax rates for contentious lotteries and revisited tariffs for air-conditioned hotels, revising them downwards.

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