Only 40% GST returns filed in J&K due to internet blockade, big fall in revenue collection

The J&K administration has now directed deputy commissioners in each district to let people use internet kiosks at their offices to file GST returns.

Representational image of Indian currency notes | Photo: Dhiraj Singh | Bloomberg

Srinagar: The internet blockade imposed in Jammu and Kashmir since August has resulted in only around 40 per cent of goods and services tax (GST) returns being filed, according to the government of the union territory, resulting in a dip in revenue collections.

Now, the finance department has shot off a letter to all deputy commissioners, asking them to facilitate filing of GST returns through internet kiosks set up in their offices in the next 10 days.

“In the absence of internet connectivity in the Union Territory, the tax payers have not been able to file GST returns, particularly GSTR 3B, on time since August 2019,” the communication reads.

“Although the date of filing of returns has been extended till 20 October 2019, in view of the representations received from the tax filers, the percentage of the returns filed during this period has been abysmally low. Only around 40 per cent returns due for this period have been filed so far,” it states.

“Also, as even the returns for the month of July, August, September have not been filed by all tax payers, it is requested that that the access to the internet kiosks located in your offices maybe allowed to the tax filers for at least 10 days (from 20^th November to 30^th November 2019),” the letter adds.

The clampdown was imposed ahead of the scrapping of Article 370 on 5 August. Since then, restrictions on movement and communications have been relaxed in a phase-wise manner, but internet, prepaid mobile services and SMS facilities remain suspended, affecting day-to-day activities of the people, including paying taxes.

Dip in revenue collections

This paucity of returns has resulted in a considerable dip in J&K’s revenue collections, and the department’s letter requests the DCs to arrange for the filing of returns.

“Given that continuous extension in the date of filing of returns has led to blockade of revenues (both cash and IGST and IGST settlement), there has been a considerable dip in the revenue collections for the past three months,” the letter states.

“In order to address the obtaining situation, I am directed to request you to kindly facilitate the filing of GST returns through the internet kiosks located in your offices on 20^th of this month, with necessary safeguards, which is the due date of filing of GST returns,” it adds.

‘Internet kiosks not a feasible option’

Sheikh Ashiq, president of J&K’s most prominent trade body, the Kashmir Chamber of Commerce and Industry, however, said that asking businesses to file returns at internet kiosks may not be a feasible option.

“There are so many businesses registered for GST. Is it feasible for everyone to go to the kiosks and file GST returns?” Ashiq told ThePrint.

“There is only one solution, which is to restart the broadband internet connections. The government can take precautions so that no one misuses it but asking businessmen and common people to line up at internet kiosks is not feasible. This definitely does not come under the ‘ease of doing business’,” he said.

Ashiq added that during his interaction with the business community, he has realised that those who have filed their returns have done so by either travelling out of Kashmir or requesting others living outside the Valley to file the returns on their behalf.