The Rajasthan Government has made a decision to compensate late filing costs paid by taxpayers for the months of April 2021 to March 2022 in a way that will soon be regulated.
The State Government is responsible, under the ruling, for reimbursing the late charge. The Rajasthan Goods and Services Tax Act, 2017, registered taxable person (beneficiary) has submitted the amount specified in the order to refund the late fee payable under section 47.
Every registered person who is required to file GST returns must do so immediately, per Section 47 of the Rajasthan GST Act, or else a late fee may be assessed.
Only late costs that are owed and submitted for returns or outward supply details between the time period of April 2021 to March 2022, except yearly returns under Section 44, are eligible for reimbursement under this order.
For the period from April 2021 to March 2022, the order is applicable to registered taxable persons who have submitted their returns or details of outbound deliveries in line with sections 37, 39, and 45 of the Rajasthan Goods and Services Tax Act, 2017 or who must do so by 31.03.2023.
Furthermore, any recipient who improperly claimed a reimbursement will have to pay back the money as well as interest at a rate of 18% per year and a penalty equivalent to the amount improperly claimed.
Read also: Due Dates of GST Payment with Penalty Charges on Late Payment
The Chief Commissioner of State Tax is required to establish the Guidelines for Application and Procedure for Refund of Late Fees Payable and Deposited Under This Order. In addition, the state government has the right to amend the order at any moment, in whole or in part, going forward or backwards.
Prior to this, the Rajasthan Government released a circular outlining the proper way to submit GST reports, as reported by Taxscan. The department was made aware of cases where taxpayers failed to report ineligible ITC in GST-3B return filing due to IGST paid on inbound interstate supplies and import supplies, potentially leading to a short transfer of IGST funds to the state.
