GST Council Grants Relief to Late Filers: ITC Denial Waiver

Panaji, Jun 22 (PTI) Goa Chief Minister Pramod Sawant attended the 53rd GST Council meeting in New Delhi on Saturday and raised the issue of small traders who were denied their input tax credit claims due to late filing of returns, an official said.
He raised the issue of those who filed GST returns late due to the COVID-19 pandemic as well as financial and technical issues, a CMO statement released here said.
"These taxpayers were denied their input tax credit (ITC) claims because returns were filed late after time limit given under section 16(4) of GST Law was over. Sawant took up this issue at GST Council meeting today on behalf of Goa and requested for giving relaxation from applicability of time limit of Section 16(4) for all returns of 2017-18 to 2020-21 if their returns are filed on or before November 2021," the statement said.
After discussion, the GST Council accepted this proposal, it added.
"Due to this decision of GST Council not only small businessmen from Goa but all together about 5 lakh taxpayers all over India will be benefitted. Taxpayers will not be required to pay denied ITC with interest," the CMO said.
The CM 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, it said.
"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," as per the CM statement.
The GST Council also decided to suitably amend the law to clarify that extra neutral alcohol (ENA) used for manufacture of alcoholic liquor for human consumption is not taxed under GST law, which will help the sector in bringing down manufacturing cost and will also boost the liquor industry, it said.