In the GST (Goods and Service Tax) Council meeting today, the proposal for a simplified return filing system was approved. It was also decided to make GST Network a state-owned entity.
According to the decision, 50 percent of GSTN will be acquired by the central government while the other 50 percent will be held collectively by state governments.
Currently, the state and central governments collectively hold 49 percent of the entity, divided equally between the two. The remaining 51 percent is held by HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment Co and LIC Housing Finance Ltd.
For a simplified return filing framework, a new software will be put in place in 6 months, said Finance Secretary Hasmukh Adhia during the press release. This transition will happen in three stages.
The new GST return filing framework will include
- One return per month for taxpayers excluding composition dealers and nil taxpayers
- Entire turnover for B2B transactions will have to be declared
- B2B business taxpayers will have to show all invoice details
- Taxpayers will be allowed to claim provisional credit for 6 months based on their calculations
- Input tax credit will require uploading an invoice by the seller
- the government will recover tax liability from the seller (or from the buyer as per law) if the tax is not paid