New Delhi: Businessmen who have not filed returns even once since the GST system came into force in July 2017, are also being given a chance to file returns with a very nominal fee payment and join the GST mechanism.
They can join the GST mechanism by paying a fine of just Rs 1,000.
According to the general rule, those filing late returns have to pay a fine of Rs 50 per day. In such a situation, in paying the fine from July 2017 till now, such businessmen could have to pay a fine of more than Rs 50,000.
However, the benefit of this rebate will be given only when the traders file the return along with the fee by 31 August this year.
This decision was taken in the 43rd meeting of the GST Council on Friday this week, so that more and more traders can be brought under the ambit of GST.
According to GST expert and Chartered Accountant (CA) Praveen Sharma, both the government and the business will benefit from this decision.
Businessmen who have GST registration numbers will again get involved in the process of GST return by paying a nominal amount.
The government will be benefited that the GST collection will increase with the inclusion of more traders in the GST ambit.
No clarity has been given by the government for the businessmen whose GST has become inoperative.
The council has also waived fines for delays in GST return filing after May this year.
Businessmen up to 1.5 crore annually will have to pay a maximum of Rs 2,000, while for those with annual turnover between 1.5 crore to 5 crore, the maximum fine will be Rs 5,000.
At the same time, a maximum of Rs 10,000 crore will be charged as late fee from those with more than five crore turnover.
In the Council meeting, measures were taken to simplify the annual return for the financial year 2020-21.
Now businessmen will not have to get their returns certified by CA.
Those who file regular GST returns will have to file only GSTR-1 and 3B returns. It is recommended to abolish all other returns.
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