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June 29, 2021

Representation to increase Government GST Collection (Tax Augmentation) and giving True Benefit of recent Amnesty Scheme announced in 43rd GST Council Meeting

by CA Shivam Jaiswal in GST

Representation to increase Government GST Collection (Tax Augmentation) and giving True Benefit of recent Amnesty Scheme announced in 43rd GST Council Meeting

Chartered Accountants Association Surat

Date: 29th June 2021

To,

Smt. Nirmala Sitharaman Chairman, Goods and Service Tax Council and Hon’ble Union Minister of Finance Ministry of Finance, Government of India, North Block, New Delhi – 110001Shri Nitinbhai Patel Member, Goods and Service Tax Council, and Finance Minister of Gujarat Swarnim     sankul-1,     Sardar     bhavan, Sachivalay, Gandhinagar – 382010

“ALL INDIA COMMON PRESENTATION”

Subject: Representation to increase Government GST Collection (Tax Augmentation) and giving True Benefit of recent Amnesty Scheme announced in 43rd GST Council Meeting.

Respected Sir/Madam,

Greetings from Chartered Accountants Association Surat. You might be well aware that our Association works for ensuring best practices in tax compliances vis-à-vis providing a better working conditions for our members, Chartered Accountants, their staff members and the industry (“the Stakeholders”).

We are thankful to your office and GST Council, for taking various measures in Covid pandemic for GST relief in 43rd GST Council meeting. We appreciate that government has reduced GST Late fees permanently and also announced GST Amnesty Scheme for July 2017 to April 2021, by reducing GST Late fees to Rs. 500/- and Rs. 1000/- as per applicable.

This GST Amnesty scheme for period July 2017 to April 2021 is applicable only if, GST Returns withTax payment is filed upto 31st Aug 2021.

Details of Issue and Representation:

Many taxpayers whose GST Return and Tax Payment was outstanding for past period, wanted to file their pending GST Return with Tax Payment, but due to heavy GST late fee (which was coming in lakhs) were unable to file (as under GST, returns cannot be filed without late fee payment).

Now with GST amnesty scheme, many taxpayers – a) wants to file their outstanding Tax Return.

b) want to make Tax Payment to government and c) want to come on the path of compliance.

However, issue with such taxpayer is that, their GST Registration is cancelled by GST officers/department due to non-filing of return and time limit of 90 days for revocation of such cancelled registration is also over. Due to which said taxpayer are not able to activate GST Registration and make payment of pending tax liability to government.

  • This is causing hardship and impacting all stake holder (including government) as below:
    • LOSS OF TAX COLLECTION TO GOVERNMENT – Taxpayer wants to make taxpayment and file pending returns, but due to expiry of 90 days, said taxpayer are not able to activate their cancelled GST Registration and Government is losing Tax collection in such case.
    • IMPACTING MSME TO DO BUSINESS – This issue is peculiarly with MSME. Such people, who did mistake and wants to correct their noncompliance and start the new innings, but unable to do so, as their GST Registration is cancelled and now it cannot be activated. This is stopping the person from doing the business (Impacting Self-employed / small entrepreneur taxpayer).
    • TAX PAYER ARE DEPRIVED OF “TRUE BENEFIT OF AMNESTY” DUE TO EXPIRY OF TIME LIMIT TO ACTIVATE GST REGISTRATION – With positive action, government came with GST Amnesty scheme, in order to help small taxpayer to file their pending GST Return and make payment of tax. However due to cancelled GST Registration status, they are not able to do so. Also, in many taxpayers’ case, time limit of 90 days, to reactivate such cancelled registration is over. This directly impacting, rather stopping, taxpayer to avail this Amnesty scheme

Therefore, we request to kindly allow all taxpayer whose Registration is cancelled for anyperiod (From July 2017 to April 2021), to reactive their GST Registration, Make Payment ofTaxes to government, file their GST Return and Come on the path of compliance “

  • With this representation, we are not supporting taxpayer who are defaulter. However, we request government to –
    • Give them one chance to reactive their GST Registration where time period of 90 days is over.
    • Taxpayer wants to make payment of their outstanding liability. Help such taxpayer to make tax payment to government
    • Help such MSME to make new good start. Help such MSME to come on the path of compliance.
  • We are sure, if our this “All India Common Representation” on recent amnesty , if accepted, will benefit to
    • Government : By getting tax from the taxpayer who wish to but unable to do so
    • Taxpayer : By starting new inning of Tax Compliance
    • Overall Economy :  By encouraging taxpayer who stopped their business due to registration cancellation and

We request you to kindly consider and give relief for above mentioned points. Hoping for early relief / action from government. Since GST Amnesty scheme is valid upto 31st Aug 2021, it is important to consider above representation at earliest.

Thanks & Regards,

For CHARTERED ACCOUNTANTS ASSOCIATION, SURAT

President Secretary

CC:

  1. Shri Narendra Modi, The Prime Minister of India, 152, South Block, Raisina hills, New Delhi 110011
  2. Shri Anurag Thakur, The Minister of State finance and Corporate Affairs. North Block, New Delhi – 110 001
  3. Hon’ble GST Council Secretariat ,5th Floor, Tower II, Jeevan Bharti Building, Janpath Road, Connaught Place, New Delhi-110 001
  4. The Chairman of Central Board of Indirect Tax and Custom, North Block, New Delhi – 110001
  5. Principal Chief Commissioner of CGST (Vadodara Zone) ,2nd Floor, GST Bhavan, Race Course Circle, Vadodara, 390007

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