GST returns filing simplified
New Delhi: The GST Council on Friday veered around to giving up to `100 incentive for digital payments for purchases by consumers, approved a new model for single monthly return and decided to turn the GSTN into a government-owned entity. The panel, the highest decision-making body for Goods and Services Tax regime, however, deferred a decision on levying a cess on sugar.
The GST Council on Friday agreed to simplify the tax return process for traders, convert the GST Network (GSTN) into a state-run company and setting up a committee to incentivise cashless transactions in the country.
The GST Council came around to the idea to give upto `100 incentive to those who pay digitally as part of the Modi government’s agenda to promote cashless economy.
As per the proposal a 2 per cent incentive in GST rate (where tax is 3 per cent or more) will be given to those who pay through digital mode (including cheque) with a cap of `100 per voucher.
However, a decision could not be taken as some states wanted that there should be a negative list of items on which this incentive will not be applicable. So, it was decided to set up a Group of Ministers to look at issue raised during the meeting and make recommendations before the next Council meeting.
Finance minister Arun Jaitley said that a majority of states agreed to the idea of incentivising cashless transaction and only a few opposed it. “The group of minister will look into all the three issues, the view point expressed by majority, concerns expressed by some states and also whether there is a desirability to have a negative list on which incentive will not apply,” said Mr Jaitley.
This scheme will not be applicable on composition dealers.
To make return filing process for traders simple, GST Council agreed to a new format in which only one return will have to be filed in a month. Return shall be simplified also by reducing the content or information required to be filled in the return. It will be implemented in six months to allow GSTN to make software and undertake other preparations for the new system.
There will be a three stage transition to the new system. In stage one GSTR1 and GSTR3B continuing for six months. In the second stage, the new return will have facility for invoice-wise data upload and also facility for claiming input tax credit on self declaration basis, as in case of GSTR 3B now. In the final stage, sellers will have to upload sales invoices online.