The GST Council on Friday, in its 27th meet, approved the principles for filing of new return design on the basis of the recommendations of the GoM (group of ministers) on IT simplification. The GST return filing will now happen only one time every month compared to three per month under the sooner process. Finance SecretaryHasmukh Adhia said the monthly return filing system will come into force in six months and today’s system of filing of return through GSTR 3B and GSTR 1 forms would continue for no more than six months. Besides this, the GST council meet on Friday also gave a natural signal to making the GST Network a government entity as it is defined to take control the 51% stake that is currently being held by the private entities. The meet of GST Council, the greatest decision making body in the GST regime, on Friday was held via video conferencing since the Union finance minister Arun Jaitley isn’t keeping well and underneath the medical supervision for his kidney and infection related ailments.
27th GST Council Meet: Five Things To Know
1. Monthly Return: GST Taxpayers excluding several exceptions like composition dealer shall file one monthly return. Return filing dates will probably be staggered on the basis of the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having nil transaction shall have facility to file quarterly return. Vishal Raheja, DGM GST, Taxmann, welcomed the simplification of GST filing process. He explained,”One of the major decision for simplified return has been finally approved by the Council. This is a significant step as you return in the place of three monthly returns is just a welcome move.”
2. Unidirectional Flow of invoices: There will probably be unidirectional flow of invoices uploaded on GST Network by the seller on anytime basis during the month which will be the valid document to avail input tax credit by the buyer. Buyer would also be able to continuously begin to see the uploaded invoices during the month.
3. Simple Return design and easy IT interface: The B2B dealers will have to fill invoice-wise information on the outward supply created by them, based which the device will automatically calculate his tax liability. The input tax credit will be calculated automatically by the device centered on invoices uploaded by his sellers. Taxpayer will probably be also given user-friendly IT interface and offline IT tool to upload the invoices.
4: Proposal of concession on digital transactions: Keeping because the need to move towards a less cash economy, the Council has discussed at length the proposal of a concession of 2% in GST rate (where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates) on B2C supplies, which is why payment is created through cheque or digital mode, susceptible to a threshold of Rs. 100 per transaction, so as to incentivise promotion of digital payment.
The council has recommended for creating of a Number of Ministers from State Governments to research the proposal and make recommendations, before the next Council meeting, remember the views expressed in GST Council.
5. Cess on Sugar above 5% GST rate: The council deliberated over the imposition of cess on sugar over and above 5% GST and also over the reduction in GST rate on ethanol. Keeping because the record production of sugar in the present sugar season, and consequent depressed sugar prices and build-up of sugarcane arrears, the Council discussed the issue of imposition of sugar cess and decrease in GST rate on ethanol in great detail. The council has recommended for creating of a Number of Ministers from State Governments to research the proposal and make recommendations, within fourteen days, remember the views expressed in GST Council in this regard.