Panel to meet busi­nesses, ex­perts to­day on GST re­turn sim­pli­fi­ca­tion

Financial Chronicle - - PLAN, POLICY -

AS it looks to fi­nalise a sin­gle-page re­turn form for busi­nesses under the goods and ser­vices tax (GST), the min­is­te­rial panel headed by Bihar deputy chief min­is­ter Sushil Modi will meet all stake­hold­ers on Tues­day to take them on board on the two cru­cial pro­vi­sions.

The panel met here on Mon­day to dis­cuss the roll­out of re­verse charge mech­a­nism, an anti-eva­sion pro­vi­sion in the new in­di­rect tax regime. It is ex­pected to take up the is­sue again in May be­fore tak­ing fi­nal call on it.

Under the re­verse charge, re­cip­i­ent of goods or ser­vices are re­quired to pay GST in­stead of sup­pli­ers. It will en­sure more trans­ac­tions to in­crease cov­er­age of GST to the un­or­gan­ised sec­tor thus boost­ing the tax col­lec­tion.

Some states have pitched for its early roll­out as they sus­pect that traders and small man­u­fac­tur­ers are es­cap­ing the tax net. Small busi­nesses have op­posed the idea ar­gu­ing it will load them with com­pli­ance bur­den.

“Ide­ally, the re­verse charge should be lim­ited to pur­chases by com­po­si­tion deal­ers only as in other cases its a rev­enue neu­tral ex­er­cise but en­tails lot of pa­per work,” said Pratik Jain, part­ner and leader (in­di­rect tax) at PwC.

The GST coun­cil had ear­lier de­ferred im­ple­men­ta­tion of the re­verse charge mech­a­nism till June 30.

Mean­while, as per the for­mat worked out by cen­tral and state of­fi­cials as well as tech czar Nandan Nilekani, busi­nesses hav­ing zero tax li­a­bil­ity for six con­sec­u­tive months may get to file re­turns only twice a year. Fur­ther, the re­turn fil­ing date will be spread and busi­nesses hav­ing an­nual turnover of up to Rs 1.5 crore will have to file re­turn by 10th of next month, while oth­ers can file re­turn by 20th.

The GST coun­cil had at its last meet­ing al­lowed busi­nesses to file the sum­mary re­turns GSTR-3B and fi­nal sales re­turn GSTR-1 till June, fol­low­ing which the new sys­tem of re­turn fil­ing will come into ef­fect.

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