Since the time of GST implementation in India, The Government has been constantly trying to simplify the GST process with accuracy. Thus trying to get the number of Ledgers and accounts reduced which they are bound to maintain.
The move has been taken by the government keeping into account, the constant complaints about the huge ledger maintenance by the industrialists and the traders, especially the smaller businesses.
A senior Government official informed that the step has been taken and would be soon implemented. The procedural changes have been finalized. The effect of changes would range from 20 ledgers to 4 ledgers.
According to one tax expert, expressed his happiness and has declared the procedural changes as more important than rate changes. He said that this step reveals that the Government is actually working in the context of simplification of the regime.
According to the earlier structure, the Business had to maintain separate accounts for the different GST’s ( viz.central GST, state GST, integrated GST) and also for the items that fall under compensation cess. Further, the most complicated structure was for the businesses which operated in more than one State as they had to maintain four separate registers of SGST for each state. So, the condition worsens for the Businesses which are operated in 29 States and 2 Union territories.
There was no provision of adjustment in the process if the tax is paid wrongly, i.e, under a different head and businesses had to wait for a future liability to arise under the head to make the adjustment.
One of the partners at a firm said that the new system is much simplified and is just like operating a single Bank account. It allows the Businesses to allocate funds, the way they want.
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Officials also informed that more simplification of the regime is in the row and the simplified refunding through a system driven process was one of the new and simplified version.
