India is all set to launch the Goods and Services Tax (GST,) on July 1. The Finance Minister Arun Jaitley, said the government will allow companies to file late returns for the first two months after GST’s introduction, so as to enable them to adapt to the new online filing system.
The GST is expected to be the biggest tax reform in independent India’s history. This will require the companies to file three online returns every month. But some business groups have lobbied to the government about the roll out delay, so as to get acquainted with the process.
Jaitley addressed the media after GST coordination panel. He said there would be “a slight relaxation of time” for July and August before GST can be implemented strictly. Hasmukh Adhia, the finance ministry official said that the “Companies would be able to file simplified, aggregate returns in July and August, with a deadline of the 20th of the following month.”
GST, once fully setup will need to file a complete return on sales invoices by 10th of next month, and second filing on purchasing invoices by 15th. The third return will calculate the tax bill. Harishanker Subramaniam, head of indirect tax at EY India said that “Relaxation for filing transaction wise returns in July, August, will provide relief to the industry.”
The GST Council will again be meeting on June 30, a day before the launch.
