Patna: The state government is alarmed over the decline in the number of registered traders filing monthly goods and services tax (GST) returns, and the commercial taxes department has launched a special drive to convince traders.

More than 80 per cent of Bihar's 1.81 lakh GST-registered firms had filed returns in July last year, the first month of the new tax regime. That figure came down to less than 60 per cent in November 2017, a senior commercial taxes department official said under cover of anonymity.

The scenario is worse for firms that have opted for the composite scheme in which returns have to be filed every quarter. Deputy chief minister Sushil Kumar Modi, who heads the commercial taxes department, had said on Wednesday that only 25,145 of the 74,629 traders who had registered under the composite scheme filed their returns for the first quarter (July to September, 2017), for which the deadline was October 17, 2017. The second quarter (October to December) situation would be known around end of this month; January 17 is the last date for filing the returns.

"The department is organising several outreach activities, including handholding of the traders to help them in filing returns," said the commercial taxes official. "Conferences at local levels too are being organised to convince the dealers, taxation lawyers and charted accountants with an aim to generate awareness about the return filing."

Those organising these activities, however, are finding it tough to convince traders.

"Frequent changes in GST rules, particularly steps like waiving-off all fines on returns for the first three months and frequent extension of the last dates for filing returns, appear to have ushered in a sense of complacency among the registered traders," said a commercial taxes official posted in a north Bihar district.

"We are trying to convince them that these things happened in the initial phase, but now that things have stabilised they should file the returns on time."

Another department official, who is posted in Patna, said the worst part was that traders who were filing their returns on time were feeling de-motivated.

"I filed my returns on time in the first three months but instead of rewarding me for it the government waived-off all fines for those who didn't file their returns on time. It is very unfair," said a Motihari-based trader.