Commissioner of Commercial Taxes Yogendra Tripathi has said the department may consider allowing monthly tax returns to be filed up to five days after the deadline of the 20th of each month, using the e-Sugam (Simple Uploading of Goods Arrivals and Movements) facility.
He was addressing members of the Karnataka Small-scale Industries’ Association (KASSIA) here on Saturday and responding to their grouse that the facility was inaccessible immediately after the deadline, causing them hardship.
He said 80,000 to a lakh e-Sugam numbers were generated every day in Karnataka, indicating the acceptance levels of the system. “The 20th of every calendar month is not the first day to file the returns, it is the last day. Why should you wait till the last day?” Mr. Tripathi asked.
This prompted a member to suggest that the department consider offering incentives to early birds. However, the official felt this would eat into revenue collection and they would then have to devise other means to generate revenue.
He said: “By postponing the blocking action by five days, I feel half of the grouse against e-Sugam will vanish.”
He added that he had instructed officials to restore the blocked facility within 12 to 24 hours after the entrepreneur filed returns.
Earlier, KASSIA’s chairman of panel on commercial taxes Vijay Kumar Makal gave out a list of grouses of small and medium enterprises.
Principal among them was the “hardship” pertaining to e-Sugam facility, which prompted Mr. Makal to accuse the local vat offices of misusing their authority to block the facility.
There were instances of cheques being presented before the due date but not being deposited on time, leading to the facility being blocked, he said.
He also urged the department to abolish the entry tax for machinery procured by SMEs from other States. This would help improve business, Mr. Makal said.
He also urged the department to expedite refund of VAT.
KASSIA president A. Vijayendranath was present.
‘Nearly a lakh
e-Sugam numbers generated