The government has passed the Puducherry Goods and Services Tax (Amendment) Bill 2018 to implement the new return filing system.
Introducing the Bill in the Assembly on Friday, Chief Minister V. Narayanasamy said the Puducherry Goods and Services Tax Act, 2017, provided for certain provisions for smooth transition of existing taxpayers to new tax regime.
However, the new tax regime had faced certain difficulties.
A major irritant
One of the major issues fior the taxpayers, especially small and medium enterprises, was the process of filing return and payment of tax under the Goods and Services Tax laws. A new system, which was introduced, envisaged quarterly filing of returns and tax payment for small taxpayers with minimum paper work. The Bill seeks to introduce certain amendments to the 2017 Act.
To a question by R. Siva (DMK), the Chief Minister said after the Union Territory migrated to the new tax regime, there had been a revenue shortfall of ₹20 crore to ₹25 crore. As per the provisions, the Centre was mandated to compensate the States and the UT for the revenue loss for the first five years. However, the compensation was being given once in two months, he added.
