Sunday, March 3

GST Council Approves Simpler Tax Filing System

The Goods and Service Tax Council (GST Council) has approved of a simpler tax return filing system under the new indirect tax regime and has also given approval for conversion of GST Network into a government holding as per information from Finance Ministry of India.

The new return filling form will reduce the compliance burden for taxpayers involving submission of only one monthly return application and upload of invoices by the sellers.

As per the GST Council, the existing GSTR 1 and GSTR 3B forms will be continued for next six months.

After this period, taxpayers will need to file only one monthly return with composition dealers. On the other hand, dealers filing no tax returns will need to file only quarterly returns.

The government has retained the right to cover dues for both taxpayers as well as the seller in case of non-payment of tax by the seller.

The Finance ministry stated,

In case of default in the payment of tax by the seller, recovery shall be made by the seller. However, reversal of credit from buyer shall also be an option available to the revenue authorities to address exceptional situations like missing dealer, closure of business by supplier or supplier not having adequate assets etc.

The GST Council has also come forward with a decision to convert GSTN into a government-owned company, where the state and center will hold 50% stake. As far as present scenario is concerned, about 51% stake is held by private entities valued at Rs. 5.1 crores, while the centre and state holding 24.5%.

The staffing terms will continue as per existing framework as a measure to protect the existing employees and their salaries. The GST Council has also given freedom to hire new employees on the similar terms.