GST Return Filing Number Going Against Government Claim

In spite of all government claims that after GST implementation the return filing number will increase, the total number of returns filed in these seven months proving the claim wrong.
The total number of registered taxpayers under GST is more than one crore but the monthly return filing has not crossed 70 lakh in a month yet. From one crore taxpayers, around 18 lakh registered under composition schemes and file the quarterly returns.

According to the Prakash Kumar, CEO of GST Network, in July, around 63 lakhs returns were filed, in August, it reached 67 lakhs, in September, the number was 69 lakh, in October, total 65 lakh filed GST returns, in November, it was 64 lakh and in December only 63 lakh filed GST returns. The total number of GST return filing in January is not revealed yet.

Prateek Jain, the Leader, Indirect tax, PwC, said, “Many taxpayers who migrated from the older systems to the GST regime may not have any business at all (even earlier), and hence they do not file returns.” Although, a total number of non-filers is huge to notice for this reason, and he further says that the government has to think about it for the real reason.

MS Mani, Senior Director, Indirect Taxes, Deloitte India, also mentions in a statement, “Under GST there is a concept of nil return where even if there are no sales in a month, the registered dealer has to file returns. Quite possibly, many dealers and businesses who think that they may not need to file a return if they have made no sales.”

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He further says that some dealers are confused and waiting and watching to file tax returns, “In GST, there is no concept of revised returns, returns once filed is filed for good. So, these traders would be thinking that even if they delay it by a couple of months all they have to do is pay the interest and a fine of Rs 50 a day, a price they are ready to bear.”

The GST authority body has relaxed the return filing provisions, extended the deadlines, and reduced the penalty from Rs. 100 to Rs. 50. These changes also reduced the number of tax filing under GST regime.

Rajat Mohan, partner, AMRG & Associates Chartered Accountants firm, mentions that in the starting phase, the taxpayers were afraid that if they will not file the returns on time, later they will not be able to file it. Although, after so many changes in a system, the fear of taxpayers vanished.