The chief executive officer of the Goods and Services Tax (GST) network has termed the GST compliance level as satisfactory with 70% of the country’s 1.1 crore registered businesses filing their returns by the deadline. In an interview to the Financial Express, GST chief Prakash Kumar also noted that the issue of delay in providing refunds to exporters has been sorted out by the government.
When GST was originally launched in July 2017, only about half of the registered taxpayers filed their returns within the stipulated deadline. As per the regulations, taxpayers must file their returns within the 20th of every month for transactions that have occurred in the previous month. According to Mr.Prakash Kumar, almost all the taxpayers who have liabilities are now filing the returns on time.
There is a significant increase in the number of taxpayers since the launch of GST. With this increase, the monthly returns filed by taxpayers have also increased significantly. The government noted that filing numbers are consistent with the numbers of the VAT regime.
Commenting on the issue of tax refund provided for integrated GST (for exporters), Mr.Prakash Kumar noted that those who file their applications with the correct details will get refunds within just four or five working days. While applying for refunds, exporters are required to provide identical details to the customs department as well as the IT department. If these details don’t match, there is a risk of refunds getting stuck.
With the prompt issue of refunds, most exporters now prefer the automated IGST route rather than the letter of undertaking route. Since the Input Tax Credit (ITC) route for filing returns was not automated, exporters who followed this route faced delays in receiving refunds.
The final draft for the tax-return filing system is still in progress. GSTN is currently working on simplifying the return filing system to make the process more efficient. The final version will focus on filing detailed returns that are crucial for matching invoices.
Source: Financial Express