GST Council Introduced New Simplified GST Return Process

The much awaited reform GST, brought a huge collection in the government kitty and in order to make it more attractive and simple, the Ministry of Finance conducted a GST council meeting today. The main agenda of the meeting was to unveil a simplified return that would require a tax payer to file a consolidated return for a set period of 6 months.

“It will take about six month 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,”

Implementation of New GST Returns

Even though the GST council has approved the new simplified process for tax returns, but its implementation may take around 9-12 months, as it is a cumbersome process which would require the government to make changes in the GST Acts by the center and states.

GST Council on New Fusion Model for GST Returns

Under the new fusion model, the tax payers will be spared to file the returns. The IT system, administered by the GST network will produce monthly returns for them based on the data uploaded and inwards supplies accepted (may be using eway bill database). Invoices will be matched with the help of semi-automatic credit reconciliation process.

Apart from that, in case of B2C business, the new return will contain the details like total turnover and in case of B2B the details of sales invoices with the dealers will be included.

In the transitional phase, there will be a separate column for the provisional credit that could be granted to the tax payer, but the returns have to be filled within 3-4 months and taxes have to be paid or else the credit will cease to exist.

The Finance Secretary further added that during these six months the GSTN will continue to update the tax payer information about what he is claiming as credit and what he is supposed to get on basis of invoice uploaded by the seller.

PRESS NOTE IN RESPECT OF CHANGES IN GST RATE.#GST for Digital India. pic.twitter.com/caCR0C9eTh

— CBIC (@cbic_india) May 4, 2018

Conclusion

Though the government has taken a stringent action to simplify the tax returns and restructuring the GST network, but will it be able to attract the traders is yet to be seen.