Chambers of Industry said on Saturday that the GST amnesty to reduce late fees for late monthly return filing would offer some relief to small taxpayers and demanded a full waiver of late fees and charges. interests. However, they expressed their disappointment at the lack of a decision on requests for zero-rating of health services, medical devices and equipment used in the treatment of COVID-19.
PHD chamber chairman Sanjay Aggarwal said small and medium-sized businesses have been severely affected due to the pandemic and allowing them to file pending returns with reduced late fees will encourage them to file returns and will ease their compliance burden.
Industry body Ficci said the recommendation on the amnesty program to reduce late fees would provide some relief to small taxpayers. “However, Ficci recommends a waiver of late fees and interest.”
The GST Council, chaired by Finance Minister Nirmala Sitharaman and made up of ministers of state, decided on Friday to come up with an amnesty plan to relieve taxpayers late for pending returns.
Late fees for non-supply of GSTR-3B for July 2017 to April 2021 were capped at Rs 500 per declaration for taxpayers who had no tax liability.
For those subject to tax, a maximum of Rs 1000 per late return will be charged, provided that these declarations are filed before August 31, 2021.
At its 43rd meeting on Friday, the GST Council left taxes on COVID-19 vaccines and medical supplies and formed a group of ministers (GoMs) to recommend tax rates on these items. The committee will submit its report by June 8.
The Council also decided that the import of COVID-related products, such as medical oxygen and vaccines, will be exempt from GST until August 31, even if these are imported on a payment basis or without. donation fee to government or state approved agency. .
Ficci President Uday Shankar said a quick decision on GST rates on essential COVID-related products would help us achieve self-sufficiency in this need of the hour.
“The FICCI also hoped to see a decision regarding our long-standing demand for zero-rate healthcare for a 24-month period during this pandemic period for the healthcare industry. We believe this would allow healthcare companies to health to prepare and cope with the current second wave and the impending third wave, ”Shankar added.
The President of the Medical Technology Association of India (MTaI), Sanjay Bhutani, said the industry’s demand to zero-rate medical devices and equipment used in the treatment of COVID-19 has not been taken into account.
“The MedTech industry has supported the fight against the pandemic since day one when even the COVID vaccination was not developed.
“Scoring at least zero of COVID management products would have reduced the cost of imports, while for a domestic manufacturer they could have received an input tax credit and used it against other products or applied for an reimbursement, ”Bhutani added.
Lakshmikumaran and Sridharan prosecutor director Shweta Walecha said that although the GoM has been asked to submit the report by June 8, 2021, to consider the need for further reductions and decide on any new rates or exemptions, however, the final rate decision may delay further since the date of the next board meeting has not been announced.
“Industries hard hit by COVID such as hospitality, travel and travel, automobiles, etc. also need some GST easing to be able to sustain themselves. The Council did not discuss these questions at this meeting, ”Walecha added.