We at FileMyGSTR have been publishing stories and news on the newly implemented Goods and Services Tax regime. GST council in one of its recent meeting has contemplated on waiver of late filing penalty for the taxpayers. This has also been conveyed by the Central Board of Indirect Taxes and Customs (CBIC) in their latest notification vide notification number – 76/2018-Central Tax dated December 31, 2018.
As a tax filing solution provider, we have assisted many first time filers in their GST return filing. Taxpayers have paid penalty to the tune of INR 50,000-60,000, without any turnover just because they took the registration but didn’t file any return for having no business.
While it is an appreciable step from the government for introducing the one-time waiver, the burning question is, what happens to the penalties already paid by the taxpayers. If only non-filers are going to receive this benefit, this will be unfair on the part of compliant taxpayers. The government can not reward the non-complaint and charge the compliant taxpayers.
On this note, We had raised a “Right to Information” application in the name of our Founder, to the revenue department to understand the volume of money collected from taxpayers in the name of “Penalty fee” for late filing under Goods and Services Tax. We were surprised to know that the amount was almost touching INR 1695.99 Crores for a period of 16 months. On an average, this is INR 100 crores per month.
While the move is worth appreciation, our concern is that we don’t see any sign or mechanism of refunding this amount back to the taxpayers with the upcoming waiver. And we are now trying to sensitize the taxpayers about this situation so that their interest be taken care at the time of actual implementation of one-time waiver.
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