1.189 billion GST collected as 78.14 percent file as of 2nd March evening

2026-03-02 - 11:25

As of Friday evening, 2nd March today, around 5 pm, 2,585 business entities out of 3,308 GST registered business entities have filed their Goods and Services Tax (GST) for January 2026. This represents 78.14 percent of total filers with another 7 hours remaining till the 2nd March deadline expires at midnight. The number of total registered businesses were initially 3,544 but were filtered as some had registered too late to be eligible to file in January and so the January registered data is 3,308 businesses. The amount collected is Nu 1.189 billion (bn) of which 1.125 bn is from GST on imports at entry points, like Phuentsholing, Paro Airport, Gelephu, Samdrup Jongkhar, etc., with only Nu 55.161 million (mn) from domestic sources and Nu 8.422 mn from government services. Both the numbers of filers and the financial amount collected has gone up since it is the last day compared to Friday 27th February when 1,567 businesses had filed. The top five GST payers, as of 2nd March are Bhutan Power Corporation at Nu 41.3 mn, Mangdechu Hydropower Plant at 18.5 mn, RICBL at around 10.9 mn, Tala at 10.63 mn and Tashi Infocom at Nu 10.39 mn. Bhutan Telecom is yet to file as of 5 pm so their number will be huge too. The refund being claimed is only Nu 35.65 mn as of 2nd March 5 pm. This has come down from Nu 58.126 million on 27th February because more people have filed payables (to be paid to government). The top companies claiming refunds are mainly by industries importing raw materials for processing and export which is exempt from GST. The top five claiming the most refunds are Bhutan Ferro Alloys Limited at Nu 12.441 mn, Perfect Steel at Nu 10.157 mn, Pelden Enterprise Limited at Nu 8.047 mn, Chukha Ferro Alloys Limited at 7.928 mn and Bhutan Carbide and Chemicals Limited at Nu 7.770 mn. Refunds will be given with a month from 2nd April unless there are those who want it to carry over. The refund amounts claimed will also be subject to verification by the Department of Revenue and Customs (DRC). Technically those missing the 2nd March midnight deadline have to pay Nu 5,000 fine and 15 percent per annum fine on the GST amount. This goes to Nu 10,000 the second time and Nu 20,000 after the third time. However, the Ministry of Finance (MoF) and DRC will likely grant an extension of time as this is the first time, and it is a new tax. The DRC will wait until 2nd March midnight when the deadline ends to assess how many have filed and how many have not, review the reasons for non-compliance across different regions, and then make a final decision on how to grant an extension. There are other fines like Nu 10,000 for not registering, Nu 5,000 for not providing the required documents or information required by DRC, Nu 5,000 for not issuing a tax invoice and Nu 200,000 fine for misleading statement to reduce tax. There are eight tax regions, with Mongar reporting the highest filing rate at 92.90 percent closely followed by Paro at 92.09 and Thimphu is the lowest at 70.67 percent as of 2nd March, largely due to Thimphu having a greater number of business outlets. A DRC official said this shows tax compliance and cooperation from the business community and it is also the success of the outreach program of the DRC and the MoF leadership. A senior MoF official said the ministry wants to be supportive since this is the first filing period and will likely waive fines this time, recognizing that some businesses face genuine difficulties. The official noted that some are struggling because they installed GST systems at the last minute. However, the official added that deliberate attempts to evade tax, what they referred to as the few “rotten apples” will not be tolerated. The official said that since this is the first GST filing, the DRC will meticulously review all returns to identify common mistakes, particularly regarding exemptions and input credits. This will allow the DRC to provide constructive feedback to filers. The official added that the aim of GST is not just revenue collection, but to build a system with integrity. As a result of GST, shops and businesses are formalizing inventories and improving record-keeping practices. The DRC’s GST teams are deployed across the eight tax regions and also work in the field. They are calling GST-registered businesses to remind them to file, and even visiting offices with proper records to assist them in filing. The DRC is following the 80/20 principle, focusing more on the 20 percent of taxpayers who contribute around 80 percent of total tax revenue. The GST system has built-in mechanisms that make tax avoidance difficult, as businesses are incentivized to declare GST paid in order to claim refunds or reduce payable GST. Honest filers also indirectly share data on other businesses they transact with. GST collection will also provide the DRC with valuable data to support the collection of Business Income Tax and Corporate Income Tax. For those still not clear on how to file GST, the MoF official said they can approach GST for support as DRC has an advocacy team and they will help them and even teach them. The official said MoF and DRC will continue with its advocacy. A DRC official noted that the 78.14% percent filing rate of Bhutan as of 2nd March 5 pm is one of the highest globally, where elsewhere initial GST filing rates have often been much lower. The MoF target or projection for indirect tax collection in 2025-26 is Nu 13.134 bn which includes six months of the old taxes like sales tax, green tax and excise from July to December 2025 and the new ones like GST and the new Excise Tax from January to June 2026. For 2026-27, the GST collection target is estimated at around Nu 14 bn.