Panel to meet businesses, experts today on GST return simplification
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.