## Report on 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, as notified by the Government of National Capital Territory of Delhi on November 18, 2021. The amendment, made under Section 128 of the DGST Act, focuses on waiving late fees for delayed submission of GSTR-1 returns for specific categories of registered persons for the tax period starting June 2021. The key finding is that this amendment provides relief to registered persons with nil outward supplies or with an aggregate turnover of up to Rupees 5 crores in the preceding financial year by capping the late fee amount.
**2. Introduction:**
This report aims to provide a comprehensive overview of the recent amendment to the Delhi Goods and Services Tax (DGST) Act, 2017, based on the official notification issued by the Government of National Capital Territory of Delhi. The report focuses on the changes introduced, the rationale behind them (as inferred from the text), and the potential impact on affected stakeholders.
**3. Policy Overview:**
* **Original Policy:** Delhi Goods and Services Tax Act, 2017
* **Core Objective(s):** The original Act aims to levy and collect tax on the supply of goods and services in Delhi. This amendment aims to provide relief in the form of late fee waivers for delayed GSTR-1 filings, particularly for smaller businesses.
**4. Background and Rationale:**
The amendment appears to address the issue of late fees burdening smaller taxpayers who may face difficulties in filing their GSTR-1 returns on time. The waiver, with specific monetary limits based on turnover and supply status, suggests an attempt to ease compliance and reduce the financial strain on such businesses, especially in the wake of potential disruptions or challenges faced during the tax period starting June 2021.
**5. Key Provisions / Changes:**
This document details changes to the late fee payable for delayed submission of GSTR-1.
* **Specific Part of Original Policy Changed:** Section 47 of the DGST Act, 2017, concerning late fees.
* **New Rule/Provision:** The amendment inserts a proviso stating that the total late fee payable under Section 47 for the tax period June 2021 onwards, or quarter ending June 2021 onwards, will be waived if it exceeds a specified amount based on the registered person's category. The categories and applicable capped amounts are as follows:
* **Category 1:** Registered persons with nil outward supplies in the tax period: Late fee capped at Rupees Two Hundred and Fifty.
* **Category 2:** Registered persons with an aggregate turnover of up to Rupees 1.5 crores in the preceding financial year (excluding Category 1): Late fee capped at Rupees One Thousand.
* **Category 3:** Registered persons with an aggregate turnover of more than Rupees 1.5 crores and up to Rupees 5 crores in the preceding financial year (excluding Category 1): Late fee capped at Rupees Two Thousand and Five Hundred.
* **Effect of Change:** This change reduces the financial burden on businesses facing difficulties in filing GSTR-1 returns by the due date by capping the late fee they are required to pay.
**6. Target Audience and Stakeholders:**
The direct target audience for this amendment is registered persons under the DGST Act, 2017, operating in Delhi, who:
* Have nil outward supplies in a tax period.
* Have an aggregate turnover of up to Rupees 5 crores in the preceding financial year.
* Fail to furnish the details of outward supplies in FORM GSTR-1 by the due date for the tax period starting June 2021 onwards.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Department of Finance Expenditure of the Government of National Capital Territory of Delhi is responsible for issuing the notification.
* **Timelines or Procedures:** The amendment applies to the tax period starting June 2021 onwards, or quarter ending June 2021 onwards. The procedures for availing the late fee waiver are not explicitly detailed in the text but would likely involve demonstrating eligibility based on turnover and outward supply status. The amendment specifies that GSTR-1 should be filed to avail this waiver.
**8. Expected Outcomes / Impact of Changes:**
The intended outcome of this amendment is likely to:
* Reduce the financial burden on small and medium-sized businesses in Delhi struggling with timely GSTR-1 filing.
* Encourage greater compliance by making it easier for businesses to rectify late filing without incurring significant penalties.
* Improve the overall GST collection process by incentivizing businesses to file returns, even if delayed.
**9. Conclusion:**
The amendment to the Delhi Goods and Services Tax Act, 2017, pertaining to late fee waivers for GSTR-1 filings, is a significant measure designed to provide relief to smaller taxpayers in Delhi. By capping the late fee based on turnover and supply status, the amendment aims to reduce the financial burden, encourage compliance, and ultimately improve the efficiency of the GST system. The policy is of particular importance to businesses with turnover up to Rupees 5 Crores, and nil outward supplies, directly affecting their compliance costs.
Key Entities Referenced
Delhi: Place. Location of publication, Delhi, India.
National Capital Territory of Delhi: A Union Territory of India. Location of the Government issuing the notification.
Delhi Goods and Services Tax Act, 2017: Law. The governing legislation for Goods and Services Tax in Delhi.
Council: Organisation. Refers to the Goods and Services Tax Council, which makes recommendations related to GST.
Department of Finance ExpenditureIV: Government Department. The department within the Government of National Capital Territory of Delhi responsible for finance and expenditure.
042018 State Tax, dated the 23rd Feb, 2018: Policy Document. Notification number related to State Tax.
F.386FinRevI201718DSVI92, dated the 23rd Feb, 2018: Policy Document. Notification number related to finance revenue.
June, 2021: Date. Tax period mentioned in the context of late fee waivers.
FORM GSTR1: Form. Form for furnishing the details of outward supplies.
Ravinder Kumar: Person. Dy. Secy.I Finance, signatory of the order.
532020 State Tax, dated the 21st December, 2020: Policy Document. Notification number related to State Tax, last amended notification.
F.3 66FinRevI202021DSIV238, dated the 21st December, 2020: Policy Document. Notification number related to finance revenue, the amended notification.
Mayapuri, New Delhi: Place. 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.एलx.x-xअG.I-D2H2x1x1x2 021-231277
SG-DL-Ex-x2xG21ID1E20xx2x1 -231277
असाधारण
EXTRAORDINARY
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
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No. 343] DELHI, THURSDAY, NOVEMBER 18, 2021/KARTIKA 27, 1943 [N. C. T. D. No. 260
भाग IV
PART IV
राष्ट्रीय रािधानी राज्य क्षत्रे दिल्ली सरकार
GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI
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FINANCE (EXPENDITURE-I) DEPARTMENT
NOTIFICATION
Delhi, the 18th November, 2021
No. 20/2021–State Tax
No. F.3(116)/Fin.(Exp-I)/2021-22/DS-I/315.— 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), the
Lieutenant 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 National Capital Territory of Delhi,
in the Department of Finance (Expenditure-IV), No. 04/2018– State Tax, dated the 23rd Feb, 2018, published in the
Gazette of Delhi, Extraordinary, Part IV, vide No. F.3(86)/Fin(Rev-I)/2017-18/DS-VI/92, dated the 23rd Feb, 2018,
namely:—
In the said notification, after the fourth proviso, the following proviso shall be inserted, namely:—
―Provided also that the total amount of late fee payable under section 47 of the said Act for the tax period
June, 2021 onwards or quarter ending June, 2021 onward, as the case may be, shall stand waived which is in excess of
an amount as specified in column (3) of the Table given below, for the class of registered persons mentioned in the
corresponding entry in column (2) of the said Table, who fail to furnish the details of outward supplies in FORM
GSTR-1 by the due date, namely:—
Table
S. No. Class of registered persons Amount
(1) (2) (3)
1. Registered persons who have nil outward supplies in the tax Two hundred and fifty rupees
period
2. Registered persons having an aggregate turnover of up to rupees One thousand rupees
1.5 crores in the preceding financial year, other than those
covered under S. No. 1[PART IV DELHI GAZETTE : EXTRAORDINARY 3
3. Registered persons having an aggregate turnover of more than Two thousand and five hundred
rupees 1.5 crores and up to rupees 5 crores in the preceding rupees
financial year, other than those covered under S. No. 1
By Order and in the Name of the Lt. Governor
of the National Capital Territory of Delhi,
RAVINDER KUMAR, Dy. Secy.-I (Finance)
Note: The principal notification No.4/2018-State Tax, dated 23rd February, 2018 was published in the Gazette of
Delhi, Extraordinary, Part IV, vide No. F.3(86)/Fin(Rev-I)/2017-18/DS-VI/92, dated the 23rd February, 2018 and was
last amended vide notification No. 53/2020 – State Tax, dated the 21st December, 2020, published in the Gazette of
Delhi, Extraordinary, Part IV, vide No. F.3 (66)/Fin(Rev-I)/2020-21/DS-IV/238, dated the 21st December, 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.