The upcoming Monsoon Session of the Parliament is all set to table amendments in the GST which will also be completing its 1st year since introduction on July 1st.
The categories that will see top priority changes include:
- Simple Return Filing Forms.
- Modification in Composition Schemes
- Elimination of ambiguities in GST Laws and Provisions.
As per the proposals made, the Government will in all likelihood continue with the practice of filing GSTR 1 sales returns and GSTR 3B summary returns. It should do away with the presently suspended purchase return form GSTR 2 and the comprehensive return form GSTR 3.
The Road Ahead
Unlike the earlier focus on tax rate changes, the second year of GST will be focussed on ensuring timely tax refunds as well as increasing compliance. This was hinted by the GST Council in May when it had approved a new system of return filing. As per the notification:
- Small Business owners who are benefitting from the composition scheme now need to file quarterly returns post the six-month transition period.
- Taxpayers also need to file only a single return for the year.
Any changes in the prevailing Composition Scheme which is subjected to tax evasion may depend on a decision on the reverse charge mechanism kept which has been kept at bay for the time being. Even industry experts are hopeful and expecting beneficiary updates for the taxpayers and business owners at large. M.S. Mani, a partner at Deloitte India expressed his positive expectation by saying that the upcoming amendments could further improve the ease of doing business as well as reduce compliance burden with a simple return filing procedure.
