Internet services were terminated in Jammu and Kashmir from August as Article 370 was put out to pasture, this led to the extremely low percentage of returns filed in this period and so the low revenue collection in the union territory.
Government of J&K tells that only 40% of goods and services tax (GST) returns have been filed in the past three months, despite the postponement of the due date of filing returns to 20th October 2019, as a consequence revenue collections went down. This happened because of the internet restriction in Jammu and Kashmir since August due to jettisoning of Article 370 on 5th August.
To resolve the situation, for now, the finance department has sent a letter to all deputy commissioners, directing them to allow the return filers to access the internet and file GSTRs via internet kiosks available in their offices for the next 10 days i.e. From 20th November 2019 to 30th November 2019.
“In the absence of internet connectivity in the Union Territory, the taxpayers have not been able to file GST returns, particularly GSTR 3B, on time since August 2019,” the letter reads.
“Although the date of filing of returns has been extended till 20 October 2019, in view of the representations received from the tax filers, the percentage of the returns filed during this period has been abysmally low. Only around 40 per cent returns due for this period have been filed so far,” it adds.
“Also, as even the returns for the month of July, August, September have not been filed by all taxpayers, it is requested that the access to the internet kiosks located in your offices may be allowed to the tax filers for at least 10 days (from 20th November to 30th November 2019),” the letter states.
Since 5th August when Article 370 was scrapped put, prepaid mobile facilities, SMS & internet services were embargoed, this affected the regular activities of people including GST payment
Check out due dates of payment under GST for general and composition taxpayers in India. We have included penalty charges on late payment with interest. Read More, return filing, etc. As a result, taxpayers could not file GSTRs especially GSTR 3B on time.
The slenderness in the percentage of returns filed downturned the J&K’s revenue collections. To address the situation, internet facility to file GSTRs from internet kiosk set up at GST offices will be made available on orders from Finance dept of J&K to GST officials.
“Given that continuous extension in the date of filing of returns has led to the blockade of revenues (both cash and IGST and IGST settlement), there has been a considerable dip in the revenue collections for the past three months,” the letter says.
“In order to address the obtaining situation, I am directed to request you to kindly facilitate the filing of GST returns through the internet kiosks located in your office on the 20th of this month, with necessary safeguards, which is the due date of filing of GST returns
Check out the compliance calendar of Income-tax and GST for current month with brief details. Also, we attached the latest notification of Income-tax and GST. Read More,” the letter adds.
However, according to Sheikh Ashiq, president of J&K’s most prominent trade body, the Kashmir Chamber of Commerce and Industry, filing GSTRs using internet kiosks facility may not be a feasible way out for businesses.
Ashiq also told what he realized in communication with the business community that the taxpayers have filed returns by going out of J&K or requesting others who are residing outside the Valley to file GSTRs on their behalf. According to him, it is not easy for businessmen to file GST returns at Internet kiosks, resuming the internet broadband connection will only unravel the troublesome situation.
“There are so many businesses registered for GST. Is it feasible for everyone to go to the kiosks and file GST returns?” Ashiq asked.
“There is only one solution, which is to restart the broadband internet connections. The government can take precautions so that no one misuses it but asking businessmen and common people to line up at internet kiosks is not feasible. This definitely does not come under the ‘ease of doing business’,” he said.
