The government is mulling cancelling GST registration for 5.43 lakh taxpayers who have not filed month-to-month tax returns (GSTR-3B) for the final six months or a lot more, sources in the income division mentioned. Additionally, the division would ‘persuade’ 25,000 taxpayers, who have not filed returns for October that was due by November 24, to comply with tax return deadlines.
Sources mentioned tax officers have been directed to stick to up personally with these defaulting taxpayers so that their GSTR-3B returns due for the month are filed by November 30. These assessees had been identified on the basis of final month’s statistics, sources mentioned right after a higher-level meeting held in the income division.
The push for improved compliance comes on the heels of tax department’s nationwide drive against fake invoice scams.
It is suspected that fraudsters typically register firm beneath GST but stay mainly dormant on compliance even though applying the status to claim invalid input tax credit (ITC).
The Directorate General of GST Intelligence (DGGI) and CGST Commissionerates has so far arrested 85 persons for availing or passing on ineligible ITC fraudulently and have booked 981 instances against a lot more than 3,119 fake GSTIN entities identified across the nation, sources mentioned.
Sources mentioned it was highlighted in the critique meeting that even though 80 lakh GSTR-3B returns have been filed this month (for transactions in October), the division would undertake measures to send reminders to 25,000 taxpayers to comply.
The Goods and Services Tax Network (GSTN) has also been directed to send 1 lakh SMSes and e-mail reminders per day to the taxpayers, especially to the defaulting taxpayers, to file the return in due time, sources mentioned.
According to the GST return filing schedule, the GSTR-3B returns had been anticipated to be filed in a staggered manner by November 20, 22 and 24 for transactions produced in October. Taxpayers with turnover above Rs 5 crore annually are anticipated to file returns by 20th of any provided month.
After declining in the very first 5 months, the GST collections came in greater in September and October compared with the corresponding period final year. In September it was Rs 95,480 crore, about 4% greater and in about 10% greater in October at Rs 105,155 crore.