The Finance Ministry on Monday announced a one-time special scheme to file GST Return Form 1. Filing of this return is mandatory under GST law and violation invites late fine.

The new scheme prescribes waiving off the late fee payable for delayed furnishing of FORM GSTR-1 for the period from July 2017 to September 2018, till October 31. The scheme has come at a time when there is huge difference between the number of people who have filed GSTR 3B and GSTR 1. Approximately 8.5 crore GSTR 3B have been filed since July 2017 while the number of GSTR 1 has been about 4.7 crore. GSTR 1 and GSTR 3B are different kinds of return forms to be filed by tax assessees.

Terming the new scheme as a welcome step, Anita Rastogi, Indirect Tax Partner at PwC, said, “There are several instances where returns could not be filed in time. Needless to say, it is an expectation that in year one of GST implementation, the government should be liberal”

The new scheme will be applicable for all registered persons having aggregate turnover above ₹1.5 crore, including registered persons in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry). For taxpayers having aggregate turnover up to ₹1.5 crore, the due date for furnishing FORM GSTR-1 for the quarters from July 2017 to September, 2018 has been extended till October 31.

For those having aggregate turnover up to ₹1.5 crore in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry), the due date for furnishing FORM GSTR-1for the quarter July, 2018 to September, 2018 would continue to be November 15. For those who will now migrate to GST, the last date for furnishing the details of outward supplies of goods or services or both in GSTR-1 and for filing the return in GSTR-3B for the months of July, 2017 to November, 2018 has been extended till December 31, 2018.

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