GOODS AND SERVICES TAX-KEY DEVELOPMENTS

The message of the government is now indeed loud and clear that strict action would be taken against all defaulters. It would indeed augur well for trade to ensure compliance with the provisions of law rather than to face the wrath of the Department. As evidenced above, the Standard Operating Procedure would indeed go a far way in the matter of best judgment assessment and deciding the fate of non-filers of various returns.

- Adv Sherry Samuel Oommen

The GST Council in its 38th meeting held on 18.12.2020, which was conducted under the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman has made a series of recommendations, particularly regarding the procedural related aspects. In this article, I wish to deliberate on some of the recommendations of the Council emanating from the 38th meeting.

Constitution of Grievance Redressal Committee

Grievance Redressal Committees (GRC) will be constituted at Zonal or State level with both CGST and SGST officers and including representatives of trade and industry and other GST stakeholders (GST practitioners and GSTN etc.). These committees will address grievances of specific or general nature of taxpayers at the Zonal or State level.

Measures to improve filing of GSTR 1 (ie, return capturing outward supplies of a dealer)

With a view to improve filing of GSTR 1, the Council has decided to waive late fee to be given to all taxpayers in respect of all pending FORM GSTR-1 from July 2017 to November 2019, provided the same is filed by 10.01.2020. The Council has also decided that an assessee would not be in a position to generate an E-way Bill, if he has not filed GSTR 1 for two tax periods.

Prescription of a Standard Operating Procedure for return non-filers

The Council noted that divergent practices are being adopted by departmental officials whilst dealing with non-filers of returns. With a view to ensure uniformity and clarify the issues regarding the implementation of the provisions of the law across field formations, the Council decided to prescribe a Standard Operating Procedure which would need to be followed by all tax officers whilst dealing with cases regarding non-filing of FORM GSTR 3B returns. Broadly, the Standard Operating Procedure has now been prescribed vide Circular 129/48/2019 dated 24.12.2019, which is as follows: