## Policy Analysis Report: Amendment to Delhi Goods and Services Tax Act, 2017
**1. Executive Summary:**
This report analyzes an amendment to the Delhi Goods and Services Tax (DGST) Act, 2017, specifically concerning late fees for filing returns. The amendment, effective from June 25, 2020, provides a waiver of late fees exceeding ₹250 for certain registered persons who filed their returns by September 30, 2020. The waiver also extends to taxpayers with no state tax liability for the specified periods. Additionally, a similar late fee waiver, exceeding ₹250, is granted to taxpayers with an aggregate turnover exceeding ₹5 crores in the preceding financial year, for returns related to May-July 2020, who filed by September 30, 2020, with full waiver for those with zero state tax liability. The report details the changes, their likely rationale, the affected stakeholders, and the expected impact of these amendments.
**2. Introduction:**
The purpose of this report is to provide an informative analysis of the notification issued by the Government of the National Capital Territory of Delhi, regarding amendments to the Delhi Goods and Services Tax (DGST) Act, 2017, as detailed in the provided policy text. This analysis focuses on the specific changes introduced by the amendment, their implications, and potential impact on affected parties.
**3. Policy Overview:**
* This notification amends the Government of the National Capital Territory of Delhi in the Department of Finance RevenueI, No. 762018 State Tax, dated the 3rd September, 2019.
* **Core Objective(s):** The primary objective of this amendment, as inferred from the text, is to provide relief to taxpayers by waiving or reducing late fees for filing GST returns within a specific timeframe, specifically addressing the period affected by the COVID-19 pandemic.
**4. Background and Rationale:**
This amendment likely addresses the challenges faced by taxpayers due to disruptions caused by the COVID-19 pandemic and associated lockdowns. The amendment aims to alleviate the financial burden on businesses struggling to comply with GST return filing deadlines during this period by offering a reduction or waiver of late fees for those who filed their returns by September 30, 2020. This suggests the government's intention to provide temporary relief and encourage compliance despite the challenging circumstances.
**5. Key Provisions / Changes:**
This amendment introduces the following key changes:
* **Specific Part of Original Policy Changed:** The amendment inserts new provisos after the third proviso of the original notification.
* **New Rule/Provision:**
* For registered persons mentioned in column 2 of the table of the original proviso, who failed to furnish returns for the tax period specified in column 3, but furnished them by September 30, 2020, the late fee payable under section 47 of the DGST Act exceeding ₹250 is waived. The late fee is entirely waived for taxpayers with nil state tax liability in the said return.
* For taxpayers with aggregate turnover exceeding ₹5 crores in the preceding financial year, who failed to furnish GSTR-3B returns for May-July 2020 by the due date but filed them by September 30, 2020, the late fee under section 47 exceeding ₹250 is waived. The late fee is entirely waived for taxpayers with nil state tax liability in the said return.
* **Difference/Effect of Change:** The amendment provides a conditional waiver of late fees, reducing the financial burden on taxpayers who filed their returns late due to the pandemic or other related issues, and incentivizes timely filing of returns while providing some relief.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders affected by these amendments include:
* Registered persons liable to file GST returns under the DGST Act, 2017.
* Taxpayers with an aggregate turnover of more than ₹5 crores in the preceding financial year.
* Taxpayers who were unable to file their returns for specified tax periods (particularly May-July 2020) by the due date but filed them by September 30, 2020.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Department of Finance, Revenue I of the Government of the National Capital Territory of Delhi is responsible for implementing these amendments. The Lt. Governor of Delhi approved the notification based on recommendations from the Council.
* **Timelines or Procedures:**
* The amendment is effective from June 25, 2020.
* The waiver applies to returns filed by September 30, 2020.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these specific changes include:
* Reduced financial burden on taxpayers struggling with compliance due to the COVID-19 pandemic.
* Increased compliance with GST return filing, as the waiver incentivizes taxpayers to file their returns even after the due date.
* Alleviation of potential disputes and litigation related to late fee penalties.
**9. Conclusion:**
The amendment to the Delhi Goods and Services Tax Act, 2017, provides significant relief to taxpayers by waiving or reducing late fees for returns filed by September 30, 2020, particularly benefiting those affected by the COVID-19 pandemic. The amendments are expected to encourage compliance, reduce financial burdens, and contribute to a more supportive environment for businesses operating within the National Capital Territory of Delhi. These changes represent a responsive measure by the government to address the challenges faced by businesses during an unprecedented period.
Key Entities Referenced
Delhi: Place. National Capital Territory of Delhi, India
Delhi Goods and Services Tax Act, 2017: Law. A Delhi state tax act
Council: Organisation. Recommending body
Lt. Governor of the National Capital Territory of Delhi: Person/Role. Authority issuing the notification
Department of Finance, RevenueI: Organisation. Department of the Government of the National Capital Territory of Delhi
FORM GSTR3B: Policy Document. Form for furnishing returns
Manoj Kumar: Person. Dy. Secy.IV Finance
रजिस्ट्री स.ं डी.एल.- 33002/99 REGD. No. D. L.-33002/99
भारत सर कार
GOVERNMENT OF INDIA
xxxGIDHxxx
एस.जी.-डी.एxलxx.-GअID.-E0x6xx0 12021-224239
SG-DL-E-06012021-224239
असाधारण
EXTRAORDINARY
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 4] दिल्ली, मंगलवार, िनवरी 5, 2021/पौष 15, 1942 [रा.रा.रा.क्ष.ेदि. स.ं 259
No. 4] DELHI, TUESDAY, JANUARY 5, 2021/PAUSHA 15, 1942 [N. C. T. D. No. 259
भाग IV
PART IV
राष्ट्रीय रािधानी राज्य क्षत्रे दिल्ली सरकार
GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI
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FINANCE (REVENUE-I) DEPARTMENT
NOTIFICATION
Delhi, the 4th January, 2021
No. 57/2020- State Tax
No. F.3 (72)/Fin (Rev-I)/2020-21/DS- IV/10.—In exercise of the powers conferred by section 128 of the
Delhi Goods and Services Tax Act, 2017 (03 of 2017) (hereafter in this notification referred to as the said Act), read
with section 148 of the said Act, the Lt. Governor of the National Capital Territory of Delhi, on the recommendations
of the Council, hereby makes the following further amendments in the notification of the Government of the National
Capital Territory of Delhi in the Department of Finance (Revenue-I), No. 76/2018– State Tax, dated the
3rd September, 2019, published in the Delhi Gazette, Extraordinary, Part IVvide number F.3 (36)/Fin (Rev-I)/2019-
20/DS-VI/399, dated the 3rd September, 2019, namely:–
In the said notification, after the third proviso, the following provisos shall be inserted, namely: –
“Provided also that for the class of registered persons mentioned in column (2) of the Table of the above
proviso, who fail to furnish the returns for the tax period as specified in column (3) of the said Table, according to the
condition mentioned in the corresponding entry in column (4) of the said Table, but furnishes the said return till the
30thday of September, 2020, the total amount of late fee payable under section 47 of the said Act, shall stand waived
which is in excess of two hundred and fifty rupees and shall stand fully waived for those taxpayers where the total
amount of state tax payable in the said return is nil:
Provided also that for the taxpayers having an aggregate turnover of more than rupees 5 crores in the
preceding financial year, who fail to furnish the return in FORM GSTR-3B for the months of May, 2020 to July,
2020, by the due date but furnish the said return till the 30th day of September, 2020, the total amount of late fee
under section 47 of the said Act, shall stand waived which is in excess of two hundred and fifty rupees and shall
stand fully waived for those taxpayers where the total amount of state tax payable in the said return is nil.”.
2. This notification shall be deemed to have come into effect from the 25th day of June, 2020.
By Order and in the Name of the Lt. Governor
of the National Capital Territory of Delhi,
MANOJ KUMAR, Dy. Secy.-IV (Finance)[PART IV DELHI GAZETTE : EXTRAORDINARY 3
Note: The principal notification No. 76/2018-State Tax, dated the 3rd September, 2019 was published in the Delhi
Gazette, Extraordinary, Part IV vide number F.3 (36)/Fin (Rev-I)/2019-20/DS-VI/399, dated the
3rd September, 2019 and was last amended vide notification number 52/2020 – State Tax, dated the
19/11/2020, published in the Delhi Gazette, Extraordinary, Part IV vide number F3(59)/Fin (Rev-I)/2020-
21/DS- IV /164, dated the 19/11/ 2020.
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.