On Saturday, the GST
Council approved changes in new returns formats and laws - a step that would
simplify the tax filing process. At its last meeting, the Council approved the
principle of rebuilding the GST and the law committees ordered finalize of the
return format and the law change. Approved formats and business processes are
in conformity with the basic principles with a major change - the option of
filing quarterly returns with monthly payments of taxes in the simplified
return format by small taxpayers.
After the change, all
the taxpayers except the small taxpayers will file a monthly return. Return is
simple with two main tables - one to report external supply based on invoices
uploaded by a supplier and one for getting input tax credit. Invoices can be
constantly uploaded by the seller and they can be seen and stopped by the buyer
for input tax credit.
This process will
ensure that a large part of the return is automatically filled on the basis of
invoices uploaded by the buyer and seller. In simple words, the process for
most taxpayers will be "upload - lock - pay". Taxpayers will have the
facility to create their profile based on the nature of their profile and the
nature they have received. The areas of information that will be shown to
taxpayers and fill in the return will depend on their profile.
Nil Return Films (no
purchase or sale) will be given the facility for file withdrawal by sending an
SMS.
The Council has
approved the quarterly filing of return for small taxpayers who have less than
Rs 5 crores. According to the finance ministry, the quarterly return will be
similar to the main return with the monthly payment facility, but for the two
types of registered individuals - small traders only supply
business-to-business and business-to-consumer enterprises.
For such taxpayers,
two simplified returns - are intuitive and easy-to-design. In a statement, the
ministry said, "The details of the information required to fill these
returns are less than in the regular return."
Provide amendments to
simplified design invoices and other details filed in return. Amendment will be
amended by returning the return of amendment return. Payment will be allowed
through the amendment returns because it will help in protecting interest
liability for taxpayers.
According to the
government, the turnover of about 93% of taxpayers is less than Rs. 5 crore and
these taxpayers will benefit greatly from the proposed simplification measures
to ease the business.
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