A Long Road Ahead : GST..!!

Over 36 lakh businesses have so far filed their first tax returns under the Goods and Services Tax ( GST) regime, a top tax official said on Monday.

Tax collected in the maiden filings under the GST regime, which kicked in from July 1, are still being compiled as the last date for filings under different rules is not yet over, he said. The revenue department had estimated collection of around Rs 65,000 crore from maiden GST, the official said.

The deadline for filing first monthly return and payment of taxes under GST ended on August 25.

However, businesses that availed transitional credit were allowed to file returns till August 28 after paying taxes on a self- assessment basis by August 25.

" At the start of the day today, over 36.32 lakh returns had been filed. Final tax collection numbers would be known once all the returns are in," the official said.

Under GST, businesses are supposed to file monthly sales returns and pay due taxes online. Since this was the maiden return after GST was rolled out on July 1, the government gave companies extra time to file returns and pay taxes.

Central Board of Excise and Customs, chairperson Vanaja Sarna had in her weekly letter to tax officials said the last date for payment of GST for July 2017 was extended up to August 25. But for those taxpayers who want to fill TRAN- I this month, the last date for filing GSTR- 3B is August 28, she had said.

GST Network, the company managing the tax filing apparatus, had uploaded form TRAN- 1 last week on its portal for businesses to claim credit on taxes paid prior to GST rollout on July 1.

Another official said businesses can continue to file returns and pay taxes even after the deadline ends, much like what happens in case of income tax returns and payment.

As per the GST law, any registered person who fails to furnish details of outward or inward supplies or returns required by the due date will have to pay a late fee of Rs 100 for every day during which such failure continues subject to a maximum Rs 5,000. Besides, every person who fails to pay the tax within the period prescribed will be required to pay interest at 18% from the day succeeding the day on which such tax was due to be paid.

While 72 lakh assessees of the old indirect tax regime have migrated to the GST Network portal, nearly 50 lakh have completed the migration process.

Besides, of the 15 lakh fresh registrations, as many as 10 lakh are expected to file returns for July.

Fringe benefits availed by employees liable to GST

The new Goods and Services Tax (GST) will be applicable on any non-monetary fringe benefit an employee gets from his or her employer, the government said on Monday. Monetary compensation paid to employees is not considered supply and will not attract GST, the Central Board of Excise and Customs (CBEC) said in the latest round of clarification issued in form of frequently asked questions (FAQ).

The monetary income will, however, continue to attract the relevant income tax. "The compensation to employees in the form of money is not a supply. However, fringe benefits are a supply of goods or services and are liable to tax if not exempted," the CBEC said. The fringe benefits are transactions in furtherance of business. "Even if supplied without consideration, the same are deemed supply" and will attract GST, it said. On rental income, it said GST will not be levied on the rental income of less than Rs 20 lakh in a year. "That said, where the rental income from a single property is less than Rs 20 lakh but the aggregate rental income from various properties exceed Rs 20 lakh, the requirement for registration and GST payment will be there," it said. 

According to the FAQ, no GST is chargeable if free replacement is provided by a business to customers without consideration under warranty.

From Sources:-