Many traders have not yet filed their first Goods and Services Tax (GST) returns in Vizianagaram and Srikakulam districts although August 25 is the deadline to do so, due to confusion over compilation of their business transactions. Filing of monthly returns is mandatory under the GST regime which came into force on July 1, 2017. The traders have to pay taxes by 20th and submit returns by 25th of every month, stating the business transactions of previous month.
Technically, the traders have to submit the returns by August 25 for the month of July, 2017. However, the response is said to be little from the traders who are still in confusion in understanding the GST procedures. Lack of computer knowledge is cited one of the reasons for the delay in submission of returns. Chartered accountants and tax consultants are also unable to extend helping hand to the traders with the lack of sufficient infrastructure to handle extra work. All these caused delay in submission of the mandatory returns to the AP State Tax Department, formerly known as the A.P. Commercial Taxes Department.
Facilitation centres
As many as 23,000 traders used to pay around ₹25 crore as tax every month before GST came into force in Vizianagaram and Srikakulam districts. However, the tax collection is likely to be affected initially in the GST regime with the drop in business transactions. To improve the tax collection and clarify doubts of traders, the department established GST facilitation centres in several places including Vizianagaram, Bobbili, Parvatipuram, Srikakulam, Tekkali, Palasa and other places.
Joint Commissioner of the department N. Srinivasa Rao, Deputy Commissioner P.Satyakumar (Intelligence wing), Assistant Commissioner T. Lalita (West Division-Vizianagaram) and Srikakulam head G. Ranimohan and others have been touring several places to create awareness among the representatives of shops and establishments over the filing of GST returns.
“We are also anxious to know the tax collection in the new GST regime. To achieve 100% tax collection, the department is striving hard to make every trader file the returns within the stipulated time period. That is why we have posted additional staff in facilitation centres to extend maximum help to the traders who come with different doubts,” said Dr. Satyakumar while speaking to The Hindu .
Srikakulam Tax Bar Association treasurer I.K. Rao said that frequent holidays to the banks could be one of the reasons for the late payment of taxes and filing of returns.
“Some of the traders wanted to surrender their licences as they come under below ₹20 lakh transaction category. They decided not to file the returns,” he said. “The accounts of the respective shops and establishments should understand the procedure and online filing within the deadline. Otherwise, the traders will have to pay a penalty of ₹100 per day for the late filing of returns,” he added.
