PANAJI
The GST Council has announced granting a one-time relaxation to thousands of small businessmen who, for various reasons, could not filed GST since 2017 and to allow them to claim Input Tax Credit (ITC). Around 10,000 cases from Goa will benefit with this announcement.
In another decision, the Council also approved a proposal to exempt Extra Neutral Alcohol (ENA) from GST.
According to a press statement by the Chief Minister’s Office, Chief Minister Pramod Sawant raised concerns about small businessmen who had missed the GST return filing deadlines due to the COVID-19 pandemic, financial difficulties or technical issues. These taxpayers were unable to claim their ITC because their returns were filed after the deadline specified in Section 16(4) of the GST Law.
“The CM took up this issue at GST Council on behalf of Goa and requested for giving relaxation from applicability of time limit of Section 16(4) for all returns of years 2017-18 to 2020-21 if their returns are filed on or before November 30, 2021. After discussion the GST Council accepted this proposal to suitably amend section 16(4) for allowing this ITC,” it stated.
The CMO said that with this decision, not only small businessmen from Goa but all together about five lakh taxpayers all over India will be benefitted.
Taxpayers will not be required to pay denied ITC with interest. Sawant also supported the Amnesty of giving waiver of interest and penalty demanded in assessment orders under section 73 of GST Act in respect of initial three years 2017-18, 2018-19 and 2019-20 if only tax demanded is paid.
“This will also give relief to those businessmen who had not checked their dashboard on portal in time and did not know that notices were issued to them,” the CMO said.
This was announced at the 53rd GST Council meeting held on Saturday at Bharat Mandapam, New Delhi and chaired by Union Finance Minister Nirmala Sitharaman. The GST Council discussed various issues during the meeting.
The Council also decided to suitably amend the GST law to clarify that ENA used for manufacture of alcoholic liquor for human consumption is not taxed under GST law. “This will help the liquor manufacturers in bringing down their manufacturing cost and will boost the liquor industry,” the CMO said.
