The government may change the goods and services tax (GST) returns filing periodicity from monthly to quarterly to make it simpler for all businesses to file their taxes.
The requirement of filing three GST returns in a month is also likely to be brought down to one, government sources said.
The committee working on the simplification of GST returns is likely to give its report by this month-end, and the GST Council may take up the issue in its meeting in March.
There are major concerns about the compliance requirements as it puts pressure on their resources. Those with a turnover above Rs 1.5 crore have to file monthly returns. However, the firms with up to Rs 1.5 turnover file quarterly returns.
Businesses, mainly small and medium companies, have been facing problems, given the scale of the monthly exercise. The companies with sales ranging from Rs 5 crore to Rs 250 crore fall in the small and medium enterprise category, as per the new definition of MSME.
Goods & Services Tax Network (GSTN) chairman Ajay Bhushan Pandey recently met industry chambers Ficci and CII to seek inputs on revamping the process of returns filing.
The government is working on to bring the invoice matching process in a simpler form, eliminating the need to file multiple returns, sources said.
With the simplification of invoice matching procedure, the taxpayers will be able to claim tax input credit faster. The proposed changes will allow recipients to claim input tax credit immediately after the simultaneous upload of invoices by seller and purchaser, sources said. This way delays in the monthly settlement cycle of the GSTN would not be there. Ficci has suggested removing restrictions on credit claims unless the recipient has received goods and services.
Service providers are demanding centralised registration. Currently, they have to register with every state where they provide the service. Ficci has suggested that utilisation of cash balance against tax liability should be allowed. Currently, it is allowed only in case of input tax credit claims against central GST, state GST and Integrated GST.
Source: Zee Business
Copyright © 2019 - All Right Reserved