GST: No Decision Yet On Simplification Of Returns Filing Process
A visitor holds paper work and checks documents (Photographer: Krisztian Bocsi/Bloomberg)

GST: No Decision Yet On Simplification Of Returns Filing Process

The Group of Ministers tasked with simplifying return framework under Goods and Services Tax regime could not finalise the new design in its meeting today.

The GoM has invited suggestions from industry and tax experts within a week, which will be incorporated in a report and tabled before the GST Council, GST Network head Sushil Modi told reporters. The Council will then finalise the new return filing framework.

In a meeting with industry representatives and tax experts the GoM headed by Modi discussed whether input credit paid on tax can be provided on a provisional basis or linked to tax payments. The committee headed by GSTN Chairman Ajay Bhushan Pandey suggested several options, including having the seller upload all invoices and giving the buyer credit for the bills he acknowledges. As per this suggestion, no credit will be made available if the buyer claims there are missing invoices, an official involved in the deliberations told BloombergQuint on the condition of anonymity.

The other suggestion was to provide provisional credit to buyers if the seller fails to upload an invoice, the official said. If seller disputes that transaction, the credit given to the buyer would be reversed.

The GoM is in favour of a “fusion” of these two options, Modi told reporters. The best of these two models should be incorporated into a final return filing framework that protects government’s revenue and is convenient for taxpayers, he added.

"The concept of matching invoices which is an essential ingredient of the GST compliance system – similar to what existed under VAT in few states, like Delhi, Maharashtra, etc continues in the new proposed frameworks,” Saloni Roy, senior director at Deloitte India said in an emailed statement. “It is still unclear by when the GoM will finally break the impasse and introduce the new return filing system,” she added.

More States To Join Intra-State E-Way Bill System From April 20

Another six states will implement the intra-state e-way bill mechanism from April 20, Modi said. These include Bihar, Jharkhand, Haryana, Madhya Pradesh, Tripura and Uttarakhand. Five states had rolled out the system on April 15, in its first phase.

The e-way bill mechanism for inter-state movement of goods was implemented on April 1.

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