According to the polls, it has been ascertained that the center may postpone the new format of GST return filing developed for simplified monthly returns for the Goods and Services Tax (GST).
Two persons who know about the development said “This will have to be a decision by the GST Council. But given that businesses have struggled significantly with GST returns in the past, it may not be right to upset them, with State elections and more importantly, general elections just around the corner”.
Until May or June 2019, the taxpayers under GST must be allowed to continue the current system for filing GSTR-3B returns. Yet the final decision has not been taken and it will be taken by the GST Council.
The Finance Ministry and GST Network officials said that the work on the business processes and IT architecture for the new per month returns is moving on track. A person who knows about the development said “Everything is going as per schedule. We are making all preparations and have not been informed of any decision to postpone the rollout of the new returns”. The new and latest clarified return formats and business processes have been approved by the GST Council on the 28th meeting which was held on July 21, 2018. The person who must file at least one monthly return along with two main tables of the details of ITC availed and outward supplied are all the taxpayers debarring small taxpayers and a few special cases.
The taxpayers whose annual income is less than Rs 5 crore can choose the quarterly returns filing. The decision of introducing the new clarified returns format for GST was taken from the original GST system, in which three returns must be filed in a month which was unmanageable while on the other hand, the present returns have the worry about the leakage of revenue.
The government is trying to smoothen the small and medium businesses, and introducing a new returns system may damage this scheme said the Experts.
Praveen Khandelwal, Secretary General, CAIT “Even now, many businesses don’t understand the basic concept of GST. Any new provision in the tax system takes time to grasp”. He noted, “Traders are confused”.
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As per the statement of “The new system of monthly returns will be much simpler, and the government hopes it will increase compliance and bring down misuse in availing of the input tax credit. However, it remains to be seen if it will be rolled out from April 1, 2019, the start of the next financial year”.
