Date: 2021-07-07Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by proviso to sub section 1 of section 39 read with proviso to sub section 7 of section 39 of the Delhi Goods and Services Tax Act
## Report on Delhi Goods and Services Tax (GST) Policy Notification No. 842020
**1. Executive Summary:**
This report analyzes Delhi Government Notification No. 842020 concerning the Delhi Goods and Services Tax (GST) Act, 2017. This notification allows certain registered persons with an aggregate turnover of up to five crore rupees in the preceding financial year, who have opted for quarterly return filing, to pay their tax dues every month. The key finding is that this notification aims to provide flexibility in tax payment options while maintaining regular tax revenue collection. It also addresses a transition period and clarifies deemed options for specific taxpayers.
**2. Introduction:**
The purpose of this report is to provide an informative analysis of Delhi Government Notification No. 842020, as published in the Delhi Gazette, Extraordinary, Part IV, dated July 7, 2021. The analysis focuses solely on the information provided within the notification text.
**3. Policy Overview:**
This notification pertains to the Delhi Goods and Services Tax Act, 2017.
* **Core Objective(s):** The core objective is to notify a specific class of registered persons regarding the conditions under which they can furnish returns quarterly but pay tax monthly, as per Section 39 of the Delhi GST Act, 2017. This allows certain businesses to file quarterly returns, while still contributing to the government's revenue stream on a monthly basis.
**4. Background and Rationale:**
This notification seems designed to provide smaller businesses (turnover up to five crore rupees) with a simplified return filing process (quarterly), while ensuring a consistent flow of tax revenue to the government (monthly tax payment). This may be in response to feedback from businesses regarding the administrative burden of monthly return filing or to encourage compliance through easier filing procedures.
**5. Key Provisions / Changes:**
This notification focuses on the following changes:
* **Eligibility:** Registered persons, *other than those specified in Section 14 of the Integrated Goods and Services Tax Act, 2017*, with an aggregate turnover of up to five crore rupees in the preceding financial year, who have opted for quarterly return filing under Rule 61A of the Delhi Goods and Services Tax Rules, 2017, are eligible.
* **Tax Payment:** Eligible persons must furnish a return every quarter from January 2021 onwards, but they are required to pay the tax due every month, as per Section 39(7) of the Act.
* **Conditions:** To exercise this option, the return for the preceding month, as due on the date of exercising such option, must have been furnished. Once the option is exercised, it remains in effect for future tax periods unless revised.
* **Turnover Limit:** A registered person whose aggregate turnover exceeds five crore rupees during a quarter in a financial year becomes ineligible for quarterly return filing from the first month of the succeeding quarter.
* **Deemed Option:** For registered persons falling under specific categories (defined by turnover and existing GSTR-1 filing frequency) who furnished the return for the tax period October 2020 on or before 30th November 2020, a "deemed option" is applied. This deems them to have opted for either monthly or quarterly furnishing of return as described in the table included in the notification.
* **Option Change:** The registered persons referred to in column 2 of the said Table, may change the default option electronically, on the common portal, during the period from the 5th day of December, 2020 to the 31st day of January, 2021.
**6. Target Audience and Stakeholders:**
The primary target audience is registered persons under the Delhi GST Act with an aggregate turnover of up to five crore rupees in the preceding financial year. Specifically, businesses that have previously opted to file quarterly returns under Rule 61A are directly affected. Tax consultants and GST practitioners also are stakeholders.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Lieutenant Governor of the National Capital Territory of Delhi is issuing the notification based on recommendations from the Council. The Finance Expenditure IV Department is likely responsible for the implementation and oversight.
* **Timelines/Procedures:** The notification is effective from November 10, 2020. Registered persons need to ensure they have filed the preceding month's return before exercising the option. The notification clarifies the process for deemed options based on past filing behavior.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes are:
* Reduced compliance burden for smaller businesses through quarterly return filing.
* Maintenance of regular tax revenue collection through monthly tax payments.
* Increased GST compliance due to the flexibility offered.
* A streamlined process for businesses transitioning between monthly and quarterly filing based on their turnover.
**9. Conclusion:**
Delhi Government Notification No. 842020 offers registered persons with a turnover of up to five crore rupees the option of quarterly return filing with monthly tax payments. This amendment aims to simplify compliance for smaller businesses while ensuring a steady revenue stream for the government. The notification also addresses transitional issues and clarifies deemed options based on previous filing behavior, making it a significant update for businesses operating within the Delhi GST framework.
Key Entities Referenced
National Capital Territory of Delhi: Union Territory of India
Delhi Goods and Services Tax Act, 2017: A tax law enacted in Delhi, India, related to Goods and Services Tax. (Act 03 of 2017)
Integrated Goods and Services Tax Act, 2017: A tax law enacted in India, related to Integrated Goods and Services Tax. (Act 13 of 2017)
Delhi Goods and Services Tax Rules, 2017: Rules pertaining to the Delhi Goods and Services Tax Act.
January, 2021: Start date from which certain registered persons must furnish returns quarterly.
FORM GSTR1: Form for filing return
October, 2020: Tax period.
November, 2020: Related to furnishing of return.
December, 2020: Related to furnishing of return.
Manoj Kumar: Dy. Secy. IV Finance
Ring Road, Mayapuri, New Delhi: Location of the Government of India Press
रजिस्ट्री स.ं डी.एल.- 33002/99 REGD. No. D. L.-33002/99
भारत सर कार
GOVERNMENT OF INDIA
एस.जी.-डी.एxलxx.-GअID.H-x0x8x 072021-228167
SG-DLxx-ExG-0ID8E0x7x2x0 21-228167
असाधारण
EXTRAORDINARY
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 181] दिल्ली, बुधवार, िुलाई 7, 2021/आषाढ़ 16, 1943 [रा.रा.रा.क्ष.ेदि. स.ं 70
No. 181] DELHI, WEDNESDAY, JULY 7, 2021/ASHADHA 16, 1943 [N. C. T. D. No. 70
भाग IV
PART IV
राष्ट्रीय रािधानी राज्य क्षत्रे दिल्ली सरकार
GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI
IV
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FINANCE (EXPENDITURE-IV) DEPARTMENT
NOTIFICATION
Delhi, the 7th July, 2021
No. 84/2020– State Tax
No. F.3(102)/Fin.(Exp-IV)/2021-22/DS-IV/540.—In exercise of the powers conferred by proviso to sub-
section (1) of section 39 read with proviso to sub-section (7) of section 39 of the Delhi Goods and Services Tax Act,
2017 (03 of 2017) (hereafter in this notification referred to as the said Act), the Lt. Governor of the National Capital
Territory of Delhi, on the recommendations of the Council, hereby notifies the registered persons, other than a person
referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), having an aggregate
turnover of up to five crore rupees in the preceding financial year, and who have opted to furnish a return for every
quarter, under sub-rule (1) of rule 61A of the Delhi Goods and Services Tax Rules, 2017 (hereafter in this notification
referred to as the said rules) as the class of persons who shall, subject to the following conditions and restrictions,
furnish a return for every quarter from January, 2021 onwards, and pay the tax due every month in accordance with
the proviso to sub-section (7) of section 39 of the said Act, namely:—
(i) the return for the preceding month, as due on the date of exercising such option, has been furnished:
(ii) where such option has been exercised once, they shall continue to furnish the return as per the selected
option for future tax periods, unless they revise the same.
(2) A registered person whose aggregate turnover crosses five crore rupees during a quarter in a financial year
shall not be eligible for furnishing of return on quarterly basis from the first month of the succeeding quarter.[PART IV DELHI GAZETTE : EXTRAORDINARY 3
(3) For the registered person falling in the class specified in column (2) of the Table below, who have furnished the
return for the tax period October, 2020 on or before 30th November, 2020, it shall be deemed that they have opted
under sub-rule (1) of rule 61A of the said rules for the monthly orquarterly furnishing of return as mentioned in
column (3) of the said Table:-
TABLE
Sl. No. Class of registered person Deemed Option
(1) (2) (3)
1. Registered persons having aggregate turnover of up to 1.5 crore rupees, who Quarterly return
have furnished FORM GSTR-1 on quarterly basis in the current financial
year
2. Registered persons having aggregate turnover of up to 1.5 crore rupees, who Monthly return
have furnished FORM GSTR-1 on monthly basis in the current financial
year
3. Registered persons having aggregate turnover more than 1.5 crore rupees and Quarterly return
up to 5 crore rupees in the preceding financial year
(4) The registered persons referred to in column (2) of the said Table, may change the default option electronically, on
the common portal, during the period from the 5th day of December, 2020 to the 31st day of January, 2021.
(5) This notification shall come into force with effect from the 10th day ofNovember, 2020.
By Order and in the Name of the
Lt. Governor of the National Capital Territory of Delhi,
MANOJ KUMAR, Dy. Secy. IV (Finance)
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.