GST to roll out from July 1, Govt relaxes deadline to file GST returns

The GST Council has decided to rollout the new Goods and Services Tax regime from July 1, while relaxing the return filing deadline for the first two months, and approved the rules on anti-profiteering to protect consumers.

The government said a new form (GSTR-3B) will be available for the first two months, which will enable businesses to file returns and pay taxes. They will then get an additional 25 days to complete the online filing requirement for July. For August, they will get an additional 10 days. If there are gaps between the new form and final filing (GSTR-3), additional tax will be collected.

Finance Minister, Arun Jaitley said, "Registration is going on fairly satisfactorily. As of today, 65.6 lakh, which is 81.1% of all registered businesses, have taken provisional registration for GST... when thousands and lakhs register, they don't make a complaint. When five people register, they go through the Twitter."

Fresh registration is scheduled to commence from June 25. Revenue secretary Hasmukh Adhia said, “Businesses should not rush as 30 days will be given to register. Similarly, for those with provisional IDs, there was no need to rush as they will have three months.”

With consensus still to emerge, the Council also postponed a decision on transition to E-way bills.

Tax experts welcomed the relaxation in deadline.

Rajeev Dimri, Leader for indirect tax practice, BMR & Associates, said, "This measure should significantly help in assuaging the concerns of inadequate readiness of GSTN being faced by the industry and confirms that preparedness of GSTN will not be a roadblock for the implementation of GST as was being anticipated by the industry."