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GST Council to Introduce New Method of Return Filing in Six Months

"The committee will examine how these contingencies to be addressed by the GST regime. Its constitution will be announced in the next two days," he said.

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The GST Council on Friday decided to roll out in six months a new method of filing monthly returns and to take over ownership of the GST Network (GSTN), even as it deferred a decision on imposing a sugar cess and allowing an incentive for digital payments.
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The GST Council on Friday decided to roll out in six months a new method of filing monthly returns and to take over ownership of the GST Network (GSTN), even as it deferred a decision on imposing a sugar cess and allowing an incentive for digital payments.

Briefing reporters here following the 27th meeting of the GST Council, the Chairman and Union Finance Minister Arun Jaitley said the Council had decided to set up two separate groups of five Finance Ministers of states to give recommendations both on the imposition of a cess on sugar as well as a 2 per cent incentive for making payments digitally.

“The GST Council discussed the change in ownership structure of GSTN. As per the original structure of GSTN, 49 per cent is held by the government and balance 51 per cent by other entities,” Jaitley said.

“I had made a suggestion that this shareholding of 51 per cent should be taken over by the government and divided equally between the states and the Centre.

“Eventually, the central government should hold 50 per cent and states will hold 50 per cent collectively. The collective share of states will be pro-rata divided among them per their GST ratios,” he added.

The GST Council on Friday decided to roll out in six months a new method of filing monthly returns and to take over ownership of the GST Network (GSTN), even as it deferred a decision on imposing a sugar cess and allowing an incentive for digital payments.
GST Filing, Pixabay

Noting that sugarcane farmers are in deep distress due to rise in costs, Jaitley said the Council decided to constitute a group of five ministers within two days to make a recommendation on ways to meet contingency arising when the cost of a commodity is higher than its selling price. The committee will submit its report within two weeks keeping in view the urgency of the matter, Jaitley said.

“The committee will examine how these contingencies to be addressed by the GST regime. Its constitution will be announced in the next two days,” he said.

A separate group of five ministers from states will be constituted in two days to recommend a 2 per cent concession, subject to a ceiling of Rs 100 per transaction, to consumers if they pay through digital modes. This report will be submitted before the next GST Council meeting.

“The issue before the council as whether on digital payments through either the banking mode or the cheque mode or any form of digitised mode, a two percent incentive should be given to those who pay entirely through digitised mode. This would be subject to a cap of Rs 100 per voucher and would not apply to the composition dealers,” the Minister said.

Also Read: To Review The Existing Framework of MIIs, SEBI Puts Forward Higher Regulatory Requirement

The Council on Friday also approved the new simplified model of filing returns, to be implemented after six months, providing for one monthly return for all taxpayers, except composition dealers and those with nil tax liability.

“Composition dealers and dealers having nil transaction shall have facility to file quarterly return,” Finance Secretary Hasmukh Adhia said elaborating on the new model.

He said the six-month transition phase is required to get the new software ready, during which the present system of filing GSTR 3B and GSTR 1 returns would continue, adding that taxpayers could continue to claim provisional credit in this period. (IANS)

 

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Filing GST Returns Too Taxing

It has made it mandatory for tax payers to file the income tax return by 31st of July. In case of the delay, the fine of Rs. 5000/- per file is being imposed

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GST is one of the strongest step taken in the direction of Digital Technology.

By Salil Gewali

No doubt the NDA government in the center brought about remarkable changes in the market and the fiscal policy. One of those includes GST with a strong backup of the digital technology. No one would disagree that this will contribute immensely to the nation building and boosting its economy. Many world economists are lauding the India’s move in this direction. Well, for all such dramatic changes our techno-savvy PM Modi’s relentless dedication and innovation is highly praiseworthy.

But, however, there are “murmurs of dissatisfaction” among the middle-class traders these days. The displeasure expressed by the business community is all about the government’s rigid diktat for the GST filing. The administration is apparently putting the hard squeeze on the middle and upper middle class traders and entrepreneurs to file GST “before 20th of each month”. In case of a delay, the penalty of Rs 50/- per day is slapped which is a huge disappointment. How on earth does the government expect each trader to have the computer knowledge? Most of the small traders have not yet touched the desktop. So, they all rush to the nearby tax professionals to do the job. Just imagine how a few tax experts in the town match up to the countless GST payers. Can ten thousands sick patients be treated by one single doctor in a short span of time? This is totally impractical.

GST
The displeasure expressed by the business community is all about the government’s rigid diktat for the GST filing.

Each tax expert has to file the return for the minimum 300 to 800 clients per month and that number is increasing by leaps and bounds. The traders are required to keep the detail account of all sales and purchases throughout the month for which they have to bear a good deal of incidental expenditures. Many erroneous entries are usually made in the filing of GST, but once the file submitted that can’t be revised. Usually, the last two days of the GST filing is a nightmare. Because the site is clogged due to heavy traffic. Does the government want the small traders being harassed and bugged out thus? Mere imposing the hard regulations will never yield the positive result.

There is another shocker of this government. It has made it mandatory for tax payers to file the income tax return by 31st of July. In case of the delay, the fine of Rs. 5000/- per file is being imposed. This is indeed a cruel imposition that might just bruise the confidence of obedient tax payers. Given the literacy rate and very poor “professionalism” in India, such hard decrees by the government only make the citizens more annoyed than happy. Here I intensely doubt if it is the BJP government that wishes so much hardship upon the public. Is it not trusting 1.25 billion Indians, as touted by our astute PM Modi, who all have been standing for him through thick and thin? I think the finance ministry immediately needs some overhauling for the interest of the general public.

Salil Gewali is a well-known writer and author of ‘Great minds on India’. Twitter: @SGewali.