This a good news for mutual fund distributors who have already obtained GST registration number and cannot cancel owing to the lock in period of one year. A few compliance officials who have spoken to GST helpline officials told Cafemutual that mutual fund distributors who are registered with GST and earn less than Rs.20 lakhs, have an option to file NIL returns.
Last month, the government has deferred the implementation of RCM until March 2018. The move has benefited mutual fund distributors who do not have GST registration number. In addition, the distributors who have migrated from service tax registration number to GST registration number can cancel their existing GST registration to avail this benefit.
However, distributors who had taken GST registration on voluntary basis have no relaxation. These distributors have to wait for one year to cancel or as and when the department enables online option.
A compliance official from a foreign fund house said that the intention of government is to extend benefits to distributors earning less than Rs.20 lakh. “We have spoken to GST officials on this issue. The officials said that such distributors can file nil returns”
Ravikumar Somasi, General Manager Karvy Computershare says, “Distributors can file ‘NIL’ returns, provided no GST invoices are issued by them. CBEC Helpdesk on 18001200232 confirmed the same. However, we urge the distributors to consult their local GST Nodal Officers or their Tax Advisors, before taking this up.”
On the process of filing nil returns, another compliance official of a large fund house said that distributors can file nil returns online by visiting GST portal.
