Industry hails relief for GST non-filers, demands no tax on health services

Industry chambers on Saturday said the GST amnesty of reducing late fees for delayed monthly return filing will provide some relief to small taxpayers, and demanded complete waiver of the late fees and interest.

They, however, expressed disappointment over no decision on demands of zero-rating of healthcare services, medical devices and equipment used in COVID-19 treatment.

PHD Chamber President Sanjay Aggarwal said that small and medium businesses have been severely impacted due to the pandemic and allowing them to file pending returns with reduced late charges, will encourage them to file returns and ease their compliance burden.

Industry body Ficci said the recommendation on the amnesty scheme to reduce the late fee will provide some relief to the small taxpayers. “However, Ficci recommends a waiver from the late fees and interest”.

The late fee for non-furnishing of GSTR-3B for July 2017 to April 2021 has been capped at Rs 500 per return for those taxpayers who did not have any tax liability.

For those with tax liability, a maximum of Rs 1,000 per return late fees will be charged, provided such returns are filed by August 31, 2021.

Ficci President Uday Shankar said a quick decision on GST rates on COVID related essentials will help us attain self-sufficiency in this need of the hour.

Medical Technology Association of India (MTaI) President Sanjay Bhutani said the industry’s request for a zero-rating of medical devices and equipment used in the treatment of COVID-19 has not been considered.

“The MedTech industry has been shouldering the fight against the pandemic since day one when even the COVID vaccination was not developed.

Zero-rating at least the COVID management products would have reduced the cost of imports, while for a domestic manufacturer, they would have been able to avail input tax credit and utilise against other products or claim refund,” Bhutani added.