MM TAX CLUB

Central Board of Indirect Taxes and Customs (CBIC) recently issued notified GST Late Fee Waiver on Annual Returns for Past Financial Years.

In a significant relief to businesses and taxpayers, the Central Government has issued a new notification under section 128 of the Central Goods and Services Tax Act, 2017 (CGST Act). The government, following the recommendations of the GST Council, has decided to waive off a portion of the late fees for specific financial years. This announcement is a major step toward easing compliance for businesses that faced challenges in furnishing their GST reconciliation statements in the past.

Key Highlights of the Notification

1. Late Fee Waiver
   The notification waives the late fee referred to in section 47 of the CGST Act for returns required to be filed under section 44 of the Act. This applies to the financial years:
   • 2017-18
   • 2018-19
   • 2019-20
   • 2020-21
   • 2021-22
   • 2022-23
2. Eligibility for the Waiver
3. The waiver is available to registered persons required to file their reconciliation statement in FORM GSTR-9C along with the annual return in FORM GSTR-9 for the aforementioned financial years.
4. The waiver applies only if the reconciliation statement in FORM GSTR-9C, which was not furnished on time, is filed subsequently on or before March 31, 2025.
5. The waiver applies to the portion of the late fee exceeding the prescribed limit as per section 47 of the CGST Act, provided the conditions are met.
6. It is important to note that no refund will be provided for late fees already paid for delayed filing of FORM GSTR-9C for these financial years.
7. Extent of the Waiver
8. No Refund Clause

Implications for Taxpayers

This waiver offers a much-needed reprieve to businesses that struggled to comply with the requirements of annual return and reconciliation filing due to various reasons. It incentivizes taxpayers to regularize their filings without incurring excessive penalties. However, taxpayers must act promptly to avail of this benefit by ensuring all pending filings are completed by March 31, 2025.

Action Steps for Taxpayers

• Review your filing status for FORM GSTR-9 and GSTR-9C for the financial years 2017-18 to 2022-23.
• File any pending reconciliation statements (FORM GSTR-9C) before the March 31, 2025 deadline.
• Seek professional advice if you’re unsure about the compliance process or need assistance with GST filings.

By leveraging this late fee waiver, businesses can mitigate past compliance lapses and ensure a smoother transition toward meeting future GST obligations.

For further queries or assistance, feel free to reach out to us.

On 20th January 2025, the Central Board of Direct Taxes (CBDT) issued an important clarification under S.O. 348(E) to address certain challenges encountered during the implementation of the Direct Tax Vivad Se Vishwas Scheme, 2024.

What is the Vivad Se Vishwas Scheme, 2024?

Introduced through the Finance (No.2) Act, 2024, this Scheme came into effect on 1st October 2024. It aims to reduce litigation and provide a simplified mechanism for resolving direct tax disputes.

Why Was This Order Issued?

Certain complexities arose in cases where:

1. An order was passed on or before 22nd July 2024 (the specified date).
2. The time for filing an appeal was still available as of 22nd July 2024.
3. The appeal was filed after 22nd July 2024 but within the stipulated time limit for filing such appeals.
4. The appeal was filed without an application for condonation of delay.

These scenarios created ambiguity regarding the eligibility of such appeals under the Scheme.

Key Clarifications Provided by CBDT

To address these issues, the CBDT has invoked the powers under section 98 of the Finance (No.2) Act, 2024, and clarified as follows:

1. Appeals Considered Pending as of 22nd July 2024:
   Appeals filed after the specified date but within the stipulated time will be treated as pending appeals as of 22nd July 2024.

2. Eligibility as Appellants:
   Individuals in such cases will be treated as appellants under the Scheme, ensuring their eligibility to participate.

3. Calculation of Disputed Tax:
   The amount of disputed tax will be calculated based on the details of the filed appeal.

4. Applicability of Scheme Provisions:
   All relevant provisions of the Scheme, along with the applicable rules, will extend to these cases.

Significance of This Clarification

This Order removes any doubts about eligibility for appeals filed after 22nd July 2024, within the stipulated time, and ensures that taxpayers can avail themselves of the benefits of the Scheme. It reinforces the Government's commitment to creating a fair and accessible resolution mechanism for taxpayers.

Final Words

The Vivad Se Vishwas Scheme, 2024, continues to serve as a crucial initiative in reducing litigation and facilitating a smoother tax resolution process. This clarification by CBDT ensures more inclusivity and clarity, aligning with the Scheme’s overarching objective of resolving disputes efficiently.

For further details, visit the Ministry of Finance or the CBDT website.

To reflect its commitment to improving member services and ensuring the accuracy of member data, the Employees' Provident Fund Organisation (EPFO) has introduced further simplification in the process of updating member profiles. Under the revised procedure, members whose Universal Account Number (UAN) has already been validated through Aadhaar can now update their profile details, such as name, date of birth, gender, nationality, father/mother’s name, marital status, spouse’s name, date of joining, and date of leaving, without the need to upload any documents. However, for UANs obtained prior to October 1, 2017, employer certification is still required.

Importance of Accurate Member Data

The consistency and authenticity of member data in EPFO’s database are critical to ensuring seamless service delivery and mitigating the risk of erroneous or fraudulent payments. Previously, members could submit change requests online by uploading necessary documents, which were then endorsed by the employer and forwarded to EPFO for approval.

Key Changes in the Simplified Process

1. Self-Approval for Most Requests:

   • Out of the 8 lakh requests received for profile corrections in FY 2024-25, nearly 45% can now be self-approved by members without requiring employer verification. This change eliminates an average delay of 28 days previously taken for employer approval of Joint Declarations (JDs).

2. Faster Employer-Level Approvals:

   • For members without full e-KYC, around 50% of change requests can now be approved at the employer level without requiring EPFO’s intervention.

3. Immediate Benefits for Pending Requests:

   • Approximately 3.9 lakh pending requests will immediately benefit from this streamlined process. Members with pending requests can delete their previous submissions and self-approve the changes under the new procedure.

4. Reduction in Grievances:

   • Currently, 27% of member grievances pertain to profile/KYC issues. The revised JD functionality is expected to significantly reduce such complaints.

Advantages of the Simplified Process

• Improved Service Delivery: The immediate processing of member requests ensures data consistency, reduces errors, and promotes efficient service delivery.

• Ease of Living: Members experience a hassle-free process for updating profile details.

• Ease of Doing Business: Employers benefit from reduced administrative workloads related to data verification.

Conclusion

The simplification of the online profile update process is a testament to EPFO’s dedication to leveraging technology for member-centric reforms. By empowering members to self-approve their profile updates, EPFO has not only improved service efficiency but also enhanced trust and transparency. These initiatives reaffirm the government’s commitment to making EPFO services more accessible and efficient, ensuring ease of living and ease of doing business for all stakeholders.