Ludhiana, August 5, 2017: S.Avtar Singh President CICU & S.Upkar Singh General Secretary CICU jointly release a statement to request the GST Council to provide extension on date of deposit of GST till 30th of Next Month.
This has reference to section of 39 of CGST Act, 2017 requiring Registered Dealers to file GST returns and to pay taxes thereof by 20th of succeeding month.
He explains that working capital cycle for most of the MSME industry is 30-45 days i.e. sales proceeds for the preceding month are generally realized on around 30th of next month. Requiring MSMEs to pay taxes before realization of sales proceeds shall be additional burden for the industry which is already under strain due to working capital crunch. This, one the one hand shall be additional burden on the industry and on the other hand shall prove to be a hindrance regarding compliances under GST laws.
Further S. Upkar Singh said that, in order to achieve the twin objective of the Government to optimize tax collection and prevent tax avoidance/evasion and at the same time to ensure growth of MSME sector, some relief is required to be granted on this front. Therefore in the interest of MSME sector, due date for payment of taxes may please be extended/fixed on 30th of succeeding month instead of 20th of next month which is the requirement under existing provisions of GST laws.
In the light of above, it is requested to GST Council to take notice of above cited concern of MSME sector and release necessary amendment regarding these existing provisions.