On the simplification of the goods and services tax (GST) returns, the ministerial panel under Bihar Deputy Chief Minister, Sushil Modi, will meet with tax experts and representatives from industry on Tuesday.
New Delhi, As it is a matter of finalizing a single page return form for business under GST, the experts of the Group of Ministers (GoM) will seek the views of the experts and representatives of the businesses and so that they can expect a return form.
According to the structure prepared by the central and state officials as well as Nandan Nilekani, the business having zero tax liability for six consecutive months may get to file returns only twice a year.
The date of filing of returns will be spread and businesses having an annual turnover of up to 15 million will have to file return by 10th of next month, while others can file returns by the 20th.
The number of returns filed by both small and large taxpayers will be 12 in a year.
The GST Council chaired by Finance Minister Arun Jaitley and comprising state counterparts, have asked the businesses to return the return GST 3B and final sales return GSTR-1 from June to the next, after which the new system of return filing will come into effect.
Besides, the first meeting of the GoM on reverse charge mechanism under GST was held today.
The GoM was constituted under Modi last month to iron out issues being faced by businesses under the reverse charge mechanism. The GST Council has kept the reverse charge mechanism in abeyance till June.
The law review committee, comprising officers from the Centre and states, had suggested reworking Section 9(3) of Central GST Act by bringing composition scheme dealers in the purview of reverse charge mechanism.
It also suggested that the Council should specify certain goods and services on which GST will be collected through RCM (Reverse Charge Mechanism) and also specify category of taxpayers who should be paying taxes as per this process.
For an unregistered dealer, the committee suggested collection of information based on PAN, Aadhaar or any other such identifier.
With regard to Section 9(4) of Central GST Act which required payment of tax by registered dealers in cases where he procures goods from unregistered businesses, the law review committee suggested doing away with the provision.
AMRG & Associates Partner Rajat Mohan said, “GST reverse charge provision needs rationalisation since it places unjustified compliance and cost burden on several categories of taxpayers, including small and medium size enterprises, NGOs, educational institutions, government organisation, religious bodies and charitable institutions”.