Narendra Modi is now ready with a new GST system that features a simple format for filing monthly GST returns. And as per the leading business daily that quotes sources familiar with the development, the decision to implement the new system will be taken by the GST Council. Nonetheless, in all probability the implementation shall not be effected before the Lok Sabha elections.
So, taxpayers will continue filing GSTR-3B returns till May or June next year.
What will be the new GST system like?
In its meet on July 21, the GST Council go its go-ahead to the simplified return forms as well as business processes. As per the new overhauled system, taxpayers will be required to file just a single monthly return with two tables of outward supplies and the other encompassing details in respect of input tax credit or ITC availed.
In respect of traders and other businesses with a turnover of less than Rs. 5 crore, there can be given an option to file quarterly returns. And still other small taxpayers can be exempted from complying with the monthly return filing requirement.
As per the last meeting's approval, the following were some of the approvals made:
- All of the taxpayers that exclude small taxpayers and some other categories like ISD shall be required to file only one monthly return that features primarily 2 main tables. One table will be for reporting outward supplies and other for the ITC that shall be basis the invoices uploaded by the supplier.
- Invoices are allowed to be uploaded by the seller on a continuous basis and the process shall ensure that a large part of the return filing process is already done automatically on the basis of uploaded invoices.
- NIL returns i.e. return with no sale and purchase can be filed over an SMS.
- On the basis of the nature of supplies, taxpayer will be able to create his profile and depending on his profile, he or she will be required to adhere to the return filing process.
- For small taxpayers where turnover is below Rs. 5 crore, there is given an option to file quarterly returns. Herein monthly payment facility is provided to 2 types of registered persons that include small traders engaged in only B2C supply or making both B2B and B2C supply.