Internet shutdown hits tax collection as only 40 percent filed returns, says govt

Finance dept asks DCs to facilitate filers from Nov 20

Internet shutdown hits tax collection as only 40 percent filed returns, says govt

SRINAGAR: The J&K government has said that internet shutdown has severely hit tax collection in the Valley since the government of India abrogated Article
370 on August 5.
According to a finance department letter (dated November 11) addressed to deputy commissioners (DCs) in Kashmir’s ten districts, only 40 percent returns have
been filed so far in the last three months.
The letter undersigned by finance department under secretary Ghulam Destageer Alam said that the failure of non-payment has led to “blockade of revenues
(both cash and IGST settlements) as there is considerable dip in revenue collection”.
It pointed out that the percentage of the returns filed during August, September and October is abysmally low.
In absence of the internet connectivity in the union territory of J&K, tax payers have not been able to file the GST returns, particularly GSTR 3B on time
since August 5, the letter said.
To shore up revenue collection, the official has asked all the DCs to facilitate filing of Goods and Service Act (GST) at their offices where internet
facility is available.
“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 by 20th of this month with necessary safeguards,” reads the letter.
“It is also requested that the access to the internet kiosks located in your offices may be allowed to the tax filers for at-least 10 days (from 20th to 30th
November, 2019).”
Internet is suspended on all platforms in the Valley since August 5 when Government of India abrogated the special constitutional status of Jammu and
Kashmir. It has caused massive economic losses to both government and private establishments.
An accountant Faizan Mehraj explains that there are two categories of filers. One is a normal tax payer who files returns twice a month and consolidated
ones who file returns only once a month. But both could not file their returns due to the blackout, he said.
He cautions that that given the huge number of tax payers, it would be a challenging task to facilitate it through designated kiosks. He suggests resumption
of internet services as a way out.
Kashmir Chamber of Commerce and Industry (KCCI) President Sheikh Ashiq concurs with him. He said that kiosks set up by the government may not be able to
cater to huge rush of tax payers.

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