The government sources have said, to make the tax filing simpler for businessmen, the return filing may be changed from monthly to quarterly. They also said that the requirement for filing three GST returns will likely to be taken down to one.
The chairman of Goods and service tax network (GSTN), Ajay Bhushan Pandey had recently met with industry chambers FICCI and CII, to look out for the inputs in upgrading the tax filing process. The report about the tax filing will be submitted at the end of this month by the committee and the meeting regarding this issue will be conducted in March.
The government is also working to bring the invoice matching process in the simpler form, eliminating the need for filing multiple returns, said the sources. The sources also said that the proposed changes will allow recipients to claim input tax credit immediately after the simultaneous upload of invoices by seller and purchaser.
FICCI has suggested removing restrictions on credit claims unless the recipient has received goods and services.
The taxpayers will be able to claim the input tax credit faster, after the simpler version of invoice matching process. After these simplification process, there will be no delay in the month settlement cycle of GSTN.
These are the very important concern as it put pressure on the resources about their compliance requirements. The businessmen, who have small or medium companies, have been facing problems, because of the monthly filing process. The business firms that have the turnover up to 1.5 crores has to file quarterly return, while those businesses who have sales turnover more than 1.5 crores has to file monthly returns.
As per the revised version of MSME, the company’s sales ranging from Rs 5 crore to Rs 250 crore fall in the small and medium enterprise category. Meanwhile, the service providers are demanding for centralized registration, as currently, they have to register in every state where they provide services.
Whereas, Ficci has suggested utilization of cash balance against tax liability should be allowed, whereas at present it is only allowed in case of input tax credit claims against central GST, state GST, and integrated GST.
