GoM meets to simplify GST Return filing: Read the outcomes

Published On: Apr 18, 2018Last Updated: Oct 14, 20233.4 min read

GST Network is focusing on the simplification of the return filing and removal difficulties while filing the returns online. In the last meeting of GST Council, the council has directed the Group of Ministers on IT to look into the process and system of filing after consultation of experts to create better user experience for taxpayers and stakeholders. The Group of Ministers has met on Tuesday with about 40 industry representatives and 15 tax experts to discuss simplification of return filing process.

What comprised the agenda of meeting?

In line to said direction, the Group of Minister met today with industry experts and stakeholders for consideration of the points to make return filing and compliance processes simpler.

  • Simplification of the filing process by eradicating the snags and complications
  • Consolidating returns in one Return (GSTR – 1, GSTR – 2 and GSTR – 3)
  • Simplify the return filing requirements for Businesses with Zero Tax liability. Businesses under this category may get to file returns only twice a year
  • Consideration for implementation of Reverse Charge Mechanism

What are the outcomes?

Reverse Charge Mechanism:

The Ministers has focused on two main topics i.e. implementation of RCM and simplification of the new return filing system. The meeting headed by Sushil Modi was held on Monday at Delhi for consideration over implementation of Reverse Charge Mechanism, which has resulted to continue the deferment of the provisions till 30th June of this year. The mechanism will be under consideration again in the next month by the Ministers.

The Law Review Committee has recommended bringing registered Dealers under Composition Scheme which also falls under the purview of RCM. It was also suggested that for Unregistered Dealers, the collection of details should be based on PAN or Aadhar. Rationalisation of this mechanism is under consideration to justify the cost and compliance burden on taxpayers.

Simplified Return Filing:

With respect to consideration over implementation of simplified system, the panel has discussed over two models for simplified returns and decided to refer another model combining best features of both models. The combined model is referred as the ‘Fusion Model,’ which is chosen bearing in mind following three principles:

  • Safeguarding interest of revenue,
  • Avoiding inconvenience to taxpayers,
  • Avoiding a complex system

The model proposes a single-page return whereas the final draft of all three models will be presented to the GST Council for approval after due consideration. However, it is still unclear about new system on return filing in place but it is anticipated that it may be introduced either in last Quarter or in next year. The upcoming changes in the laws will be incorporated in the models referred till its implementation. The present system will be continued till then. Presently, sales return is filed monthly by the taxpayers in GSTR – 3B form. Also, filing of GSTR – 1 is necessary as per due date.

2nd Phase of intra-state e-Way Bill:

With respect to implementation of e-Way Bill, the system is in force for intra-state movement in five States since 15th April, 2018.

The next phase of implementation covers following six States:

  • Jharkhand;
  • Bihar;
  • Tripura;
  • Madhya Pradesh;
  • Uttarakhand; and
  • Haryana

Implementation of e-Way Bill will be made mandatory for intra-state movements of consignment value of more than Rs 50,000 since from 20 April, 2018.

Clarification for form GSTR – 4 by Composition Dealers:

The clarification released yesterday provides that serial 4A of Table 4 shall not be furnished for tax period of July, 2017 to September, 2017 and October, 2017 to December, 2017.  It is further clarified that where the supplies are not taking place under reverse charge, the taxpayers who have opted to pay tax under the composition levy shall not furnish the data in serial number 4A of Table 4 of FORM GSTR-4 for the tax periods January, 2018 to March, 2018 and subsequent tax periods.

Upcoming Compliance Calendar under GST:

Below mentioned is the list of due dates for GST return filing in near future.

Return Tax Period Due Date
GSTR – 4 January – March, 2018 18th April, 2018
GSTR – 3B March, 2018 20th April, 2018
GSTR – 1

(for entities having turnover up to INR 1.5 Crore)

January – March, 2018 30th April, 2018
GSTR – 1

(for entities having turnover up to INR 1.5 Crore)

March, 2018 10th May, 2018

Feel free to contact experts on 89806 85509 for any clarification or assistance required.

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CS Prachi Prajapati
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CS Prachi Prajapati

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