Over 5 lakh firms could be losing their GST registration for not filing tax returns. The Revenue Department set a deadline of five days starting November 20 for the transactions done in October. As lakhs of firms have failed to file the returns, the Revenue Department is planning to cancel the Goods and Services Tax (GST) registration.
The exact number is said to be about 5,43,000 businesses.
More than half a million firms are said to have defaulted filing tax returns. The businesses haven’t filed returns for the last six months and in some cases even more. The defaulters were identified based on their monthly returns.
All the defaulters will be receiving a SMS and email officially from the revenue department, as per the reports.
GSTN has been asked to send one lakh text and email reminders a day to the taxpayers to file their returns on time by the government department. GST collection for October 2020 stands at Rs 1.05 trillion, 10.25 percent higher than October 2019.
It’s for the first time GST receipts crossed the Rs 1 trillion mark. The figures as well have experienced a double-digit growth in the current fiscal after the sharp decline amid nationwide lockdown.
GSTN processes tax returns in India. They will keep nudging the taxpayers to file returns in time by improving compliance. The government is also working to take up steps to spread more awareness.
Also, the government is ensuring there are no frauds. With a zero-tolerance policy in place for tax evasion, GST authorities has started to track the fake invoice rackets. Directorate General of GST Intelligence (DGGI) and field officers have arrested 85 persons so far who have been involved in passing on tax credits fraudulently.