spot_img

GCCI Requests FM to Waive Off IGST Penalty and Interest

Date:

Share post:



Arpit Kulshrestha

Waive Off Pending IGST Penalty and Interest

A request has been presented before Union Finance Minister, Nirmala Sitharaman by the Gujarat Chamber of Commerce & Industry (GCCI) to dismiss the interest and penalty for Integrated Goods and Services Tax (IGST) levied under notification No. 54/2018 dated October 9, 2018.

The GCCI stated that the representations received are from its different member units. They state that they have summons along with interest and penalties concerning the IGST payable following the notification. These businesses imported materials through an advanced licence. However, since the IGST was not recorded in the Bill of Exchange (BOE), they missed paying it after the consignment was cleared.

Read also: Meaning of SGST, IGST, CGST with Input Tax Credit Adjustment

Pathik Patwari, president of the Gujarat Chamber of Commerce and Industry said “Many units in Gujarat were not in knowledge about the new notification released by the GST Council, which stated that IGST needed to be paid during clearance of the consignment and then claimed as a refund through Input Tax Credit (ITC), or a Letter of Undertaking (LUT) was required to be submitted for not paying the IGST,”.

They consequently cleared their shipments devoid of paying IGST because they believed it did not apply and that no LUT had been submitted. Additionally, the consignments were discharged by the Customs Department without the LUT or IGST payments.

The GCCI made it clear saying that the units in consideration did not plan to intentionally ignore the tax payment, but this was just an accidental mistake by them. Additionally, because of this transaction, there was not any revenue loss detected by the GST Department. According to the revised notification, the units would have paid IGST upfront and later claimed a refund via ITC, leading to the same results in terms of revenue collection for the GST Department.

However, because of the accumulated interest and penalty, several units failed to pay the pending tax amount. This may have unfavourable financial outcomes for these units because most of them are MSMEs, it said.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img

Related articles

7 top travel trends that will reign this festive season

With the highly anticipated festive season just around the corner, India’s travel aspirations...

Landslide chaos at Europe’s Alpine Tunnel puts Italy to France travel network under strain

When a landslide blocked an ageing Alpine tunnel connecting Italy and France this...

Etihad Airways doubles daily flights from Abu Dhabi to Kuala Lumpur

Etihad Airways is doubling its daily flights between Abu Dhabi and Kuala Lumpur,...

Biswanath Ghat in Assam selected as Best Tourism Village of India 2023

ANI | | Posted by Zarafshan Shiraz, Sonitpur (assam) ...
spot_img