- GST Council approves new system of filing returns
- Taxpayers will be meant to file monthly returns
- The prevailing system of return filing will continue for six months
Twenty-Seventh GST Council Meet: Five Things To Know
1. Monthly Return: GST Taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on 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 said,"One of the major decision for simplified return has been finally approved by the Council. This has been a significant step as one return in place of three monthly returns is a welcome move."
2. Unidirectional Flow of invoices: There shall be unidirectional flow of invoices uploaded on GST Network by the seller on anytime basis during the month which would be the valid document to avail input tax credit by the buyer. Buyer would also be able to continuously see the uploaded invoices during the month.
3. Simple Return design and easy IT interface: The B2B dealers will have to fill invoice-wise details of the outward supply made by them, based on which the system will automatically calculate his tax liability. The input tax credit will be calculated automatically by the system based on invoices uploaded by his sellers. Taxpayer shall be also given user friendly IT interface and offline IT tool to upload the invoices.
The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind 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 in view the record production of sugar in the current sugar season, and consequent depressed sugar prices and build-up of sugarcane arrears, the Council discussed the issue of imposition of sugar cess and reduction in GST rate on ethanol in great detail. The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, within two weeks, keeping in mind the views expressed in GST Council in this regard.