This year’s compensation cess collected amounting to Rs 20,000 crores will be disbursed to the States tonight, Finance Minister Nirmala Sitharaman said on Monday after the 42nd GST Council meeting. She said Rs 24,000 crores of IGST to be released to the States that had received less earlier, will be disbursed by the end of next week.
“Nobody is going to be denied the compensation which has arisen out of implementation of GST and COVID impact. A discussion with States is on. Around 20 States have written that they opt for Option 1,” news agency ANI quoted Sitharaman as saying.
In the other announcement, Revenue Secretary Ajay Bhushan Pandey said from January 1 onwards, taxpayers which fall in the lower tax bracket will not have to file monthly returns and will only file quarterly returns.
However, because states need money every month, taxpayers can make a “payment to challan” of 35% of tax paid in the previous month in the initial two months of a quarter and then pay the remaining in the third month, Bhushan Pnadey added.
This will reduce the compliance burden on taxpayers who will now need to file just 8 returns instead of 24 in the entire assessment year.
The Finance Ministry further informed that firms and companies with turnover less than Rs 5 crore can now file quarterly returns rather than a monthly basis, noting that it “will be a major relief to small taxpayers”.
“From the first of January onwards, the taxpayers whose annual turnover is less than Rs 5 crores will not be required to file monthly returns i.e GSTR 3B and GSTR1. They will only file quarterly returns,” Bhushan Pandey was quoted as saying by ANI.
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