GST Amendment for Union Territories: New Tax Rates and Compliance Norms
Amendment to UTGST Act, 2017:
The recent amendment under Section 21 of the UTGST Act, 2017 brings significant changes to tax rates and compliance procedures for Union Territories.
Modification in Return Furnishing:
The amendment replaces the requirement of furnishing returns in FORM GSTR-3B with the phrase "liable to pay tax but fail to do so" in the first proviso.
Revised Tax Period Designation:
In the Table, the heading in column 4 is changed from "Tax period" to "Month/Quarter," indicating a shift in the designation of the tax period.
New Tax Rates for Different Categories:
Taxpayers with an aggregate turnover of over Rs. 5 crores face a rate of 9% for the initial 15 days from the due date, escalating to 18% thereafter.
Dynamic Tax Rates for Different Periods:
The amendment introduces varied tax rates based on turnover categories, imposing nil tax for the initial 15 days, followed by incremental rates for subsequent days.
Deemed Effective from May 18, 2021:
Despite the formal announcement, the amendment is deemed effective from May 18, 2021, reflecting its retrospective applicability.
Simplified Compliance for Taxpayers:
The revised rates and compliance norms aim to simplify the taxation process, providing a clearer framework for taxpayers in Union Territories.
Focused on Supporting Small Businesses:
Differentiated tax rates for businesses with turnovers up to Rs. 5 crores underscore the government's focus on supporting small and medium enterprises (SMEs).
Timely Compliance Encouraged:
Businesses are encouraged to stay informed about these changes, ensuring timely compliance with the amended tax rates and procedures under the UTGST Act, 2017.