With the countdown to GST rollout underway, Government on Thursday promised leniency in enforcing penal laws for violations during the initial period of implementation of the new national sales tax regime.
Revenue Secretary Hashmukh Adhia said a distinction would be made between genuine mistakes in filing of returns and deliberate attempts to evade taxes.
“Our intention is to have a smooth landing of GST. Intention is not to harass everyone in the first month,” he said at a GST Town Hall.
The Goods and Services Tax (GST), to be launched from July 1, will unify about a dozen central and state levies like excise duty, service tax and VAT. Indirect tax payers will have to file returns in the new system from next month.
The Government, Adhia said, will be “very very kind” to genuine mistakes.
Asked if the Government may relax penalty and fine provisions for mismatches in return filing during the initial months, he said: “There would be leniency, but I cannot announce now. The rules provide that the GST Council can waive certain requirements for certain time.”
He replied in affirmative when asked if the Council can consider waiver of interest and penalty for six months.