GST (Goods and Services Tax) Council is considering a scheme that will provide an exit route to ‘nil’ filers and non-filers under the indirect tax framework, as reported by The Hindu BusinessLine (BL). The Council is a constitutional body that is the final decision-making authority on all GST-related matters.
“Approximately there are 25 lakh ‘nil’ filer assesses while on an average 10 per cent of assesses have never filed returns so far. A scheme for exit will bring relief to the tax payers as it will bring down their compliance cost and at the same time there will be less pressure on the GST Network,” a tax official told the BusinessLine.
Both the ‘nil’ and non-filers do not pay taxes, but the tax departments still scrutinise their accounts. This creates an unnecessary compliance burden for the government and leads to an increase in the average cost of collecting taxes in the country.
While the GST framework mandates that every entity registered under it, has to file their returns. However, due to initial technical glitches and lack of clarity, many assesses refrained from doing so. This new amnesty proposal is expected to incentivise such entities to file their returns accurately.
It was earlier reported that the GST Council was considering to allow ‘nil’ assesses (those who have zero purchases and sales in a particular quarter) to file their quarterly returns through SMS’.
Also Read: GST Is Softly Killing Sub-Optimal Firms
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 999/year is the best way you can support our efforts.