GST Council Simplifies Return Filing
The GST Council on Friday unveiled a new simplified return that would require a taxpayer to file only one return every month and set a period of six months for the transition to take place.
“It will take about six months for GSTN to prepare for it so for that period the current arrangement of GSTR3B and GSTR 1 will continue. This will be the first phase of transition where the current system will continue for the next six months,” said Finance Secretary Hasmukh Adhia.
Adhia added that in the next six months the new system of return will have a single system of return for every taxpayer. “Composition dealer and zero transaction dealers will continue to file on a quarterly basis. Today, we find that the returns which are filed, 30% are nil returns, which means there is no transaction on them,” Adhia said.
In the case of B2C, the new return will contain the details of total turnover and in case of B2B it will contain the details of all sales invoices with the dealers. “The taxpayer would have to put invoice-wise details along with HSN code,” says Adhia.
More details on the return filing process are awaited.
Incentives on Digital Payments
“Another important item on the agenda was with regard to incentives on digitized payments. The issue before the Council was whether on digital payments through either the banking mode or the cheque mode or any form of digitized mode, a two percent incentive should be given to those who pay entirely in the digitized mode,” Jaitley told reporters here today.
“A committee of five members that is five ministers of the state will be constituted which would expeditiously consider all the viewpoints. This committee will be formed within the next two days,” he added.
Jaitley said that the committee would take into consideration viewpoints and its recommendations from all members, which would come up before the Council in the next meeting for consideration.
GST Network to Become 100% Government Entity
The council also approved making the GST (Goods and Services Tax) Network a government entity by taking over 51% stake that is currently being held by private entities, says Union finance minister Arun Jaitley, reported PTI. The GST Council, the highest decision-making body of GST regime, also deferred a decision on levying a cess on sugar.
The GST Council meet on Friday was held via video conferencing. Mr. Jaitley further said that the central government will own 50% in the GST Network, while the states will collectively hold the remaining half stake. Currently, five private financial institutions HDFC, HDFC Bank, ICICI Bank, NSE Strategic investment and LIC housing finance together hold 51% stake in the GST Network.