GST rollout from June 30 midnight, businesses can file late returns

The goods and services tax (GST) will be rolled out from June 30 midnight, finance minister Arun Jaitley said on Sunday, adding India did not have the “luxury of time” for more delays in implementing the biggest tax reforms since Independence.

Jaitley, however, added that companies will be allowed to file late returns for the first two months so that they can adapt to a new online filing system.

The GST will require firms to file three online returns each month. Some business lobby groups have urged a delay to the roll out to allow more time to get ready.

“A number of companies and trades have been raising the issue of the lack of their own preparedness. We do not have the luxury of time to defer implementation of GST,” Jaitley told reporters after the penultimate meeting of the GST Council.

The GST will unify Asia’s third largest economy into a common market, eliminating a string of central and state levies.

The Narendra Modi government is keen to ensure a seamless transition to GST, which is expected to shore up state and federal tax revenues, cool inflation and accelerate economic growth by 1-2 percentage points in the medium term.

At Sunday’s meeting, officials also agreed on several sets of GST rules, including anti-profiteering guidelines intended to prevent traders exploiting the reform to ramp up prices.

The GST Council will meet again on June 30, the eve of the launch, Jaitley said.