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NEW MOVES EXPECTED IN GST

NEW MOVES EXPECTED IN GST

NEW MOVES EXPECTED IN GST

As we have discussed so much related to GST like Meaning of GST, Type of GST, GSTIN etc. In this blog we will be updated on what new moves expected in GST from 27th Meeting of GST council. Since the new tax was imposed on July 1 last year, the GST Council has made 376 changes by amending rules, issuing clarifications and circulars related to refund, exemption and rates, according to experts.

Below are the prominent new moves expected in GST. Finance Minister Arun Jaitley will preside over the meeting of the council which comprises state finance ministers.

GST Return Simplification:

GSTR 1 and GTR 3B will continue for the next 6 months. The council is likely to take a decision on simplifying filing of GST returns, an issue that has been pending for long. A Group of Ministers led by Bihar finance minister Sushil Modi is likely to propose three models of new return form for discussion. New Single-return plan will go live after 6 months. Thus, there will be only 12 returns a year, instead of 36 returns. The information required to be filled in the return will be reduced. This will simplify the return preparation task and help in keeping with the philosophy of ease of doing business.

One of the models proposes that provisional credit should not be granted unless the taxpayers file returns and pay taxes. The second model states that provisional credit could be granted to a taxpayer, but returns have to be filed within three-four months and taxes have to be paid or else the credit amount would be reversed. The Group of Ministers have proposed a third model for filing returns under which credit could be extended once the invoice uploaded by the supplier is verified by the purchaser on the GSTIN model.

For more basics of GST refer our other blogs by clicking here: –

1. What is GST?

2. Advantages and Disadvantages of GST?

3. E-Way bill?

4. Exemption List under GST?

5. Types of GST Taxes?

GSTIN Ownership:

GSTN or GST Network is the company that runs the information technology (IT) platform for calculation and collection of GST. GSTN was criticized widely after it crashed several times right after its launch. It has seen major glitches causing difficulty to businesses in filing returns. Many people attributed problems with GSTN to its private ownership. Infosys runs GSTN while five private financial institutions — HDFCNSE 1.60 % Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and              LIC Housing Finance Ltd — hold 51 per cent stake in GSTN. The Central and state governments hold rest of the stake.
Jaitley had earlier this month asked Finance Secretary Hasmukh Adhia to “examine the possibility” of converting GSTN into a majority government company or a 100 per cent government company.

Incentive on Digital Payments: Incentives here may need more time to come in force. A 5 member council will work on this before the next council meet.  The proposal is to give a concession of 2% on GST rates that are more than 3% on B2C supplies. The cap of the incentive will be Rs. 100 per transaction.

E-Way Bill:

A possible process wherein the E-Way bill is checked just once during transit. Alternate lines for uploading details for generating EWBs in case of un-supported formats One-nation, one format for generating E-Way bill were states will avoid having their own forms in addition to the basic notified ones.

A new cess:

The council is expected to consider a proposal to levy a sugar cess of up to 5%. Such a move would be seen as retrograde step since the whole logic behind GST was to subsume all the cesses and surcharges under one tax. The proposal has come from the food ministry. Food Minister Ram Vilas Paswan had also said last week that government would consider cutting the GST rate on ethanol to help mills clear dues worth Rs 19,000 crore to sugarcane farmers.

Bringing back reverse charge mechanism:

In its last meeting, the council had decided to defer reverse charge mechanism till June 30. Now, some states want it to be re-introduced. This anti-evasion tool is meant to keep tabs on sale by businesses, which have a turnover of less than Rs 20 lakh and do not need to register for GST. Under the reverse charge mechanism, a person receiving goods or services collects the GST levied and deposits the tax with the government. The provision, which is suspended for now, was only meant for an unregistered entity supplying goods or services or both. In such a case, those taking the goods or services would levy and collect the tax on a reverse charge basis, ensuring that it’s paid.

In case you are confused about GST, feel free to consult the GST experts at ItsLyf. Also contact for comprehensive assistance with GST Registration and GST Return Filing by email us at info@itslyf.com

Geetika Goyal (Team Itslyf)

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