The Group of Ministers (GoM), last day finalized a new simplified model for GST return under the Goods and Services Tax ( GST ). As per the new model, credit could be given on a provisional basis once the supplier uploads the sales invoice.
As it looks to finalise a single-page return form for businesses under GST, the panel today met about 40 industry representatives and 15 tax tax experts to discuss simplification of return filing process.
A “fusion” model of return filing after incorporating stakeholder suggestion has been worked out, which will be placed before the GST Council for approval, Modi said while addressing the media.
“Till the simplified return filing process is finalised, GSTR-3B will continue,” Bihar Deputy Chief Minister Modi said.
The GST Council, headed by Finance Minister Arun Jaitley has decided to continue with the existing system. One of the models presented before the council was provisional credit should not be granted unless the taxpayers file returns and pay taxes.
The second model stated that provisional credit could be granted to a taxpayer, but returns have to be filed within 3-4 months and taxes have to be paid or else the credit amount would be reversed.
After consulting the stakeholders today, the GoM today worked out a third model for return filing as per which credit could be extended once the invoice uploaded by the supplier is verified by the purchaser on the GSTN portal.
Explaining the contours of the “fusion” model, an official said that the Central Board of Indirect Taxes and Customs (CBIC) is now working on mechanism to deal with instances of non payment of taxes even after availing credit.
The official said the model, being drafted by the tax officers, would be to sent notices to taxpayer in case he fails to pay the due taxes seeking explanation, following which the credit could be reversed.
Modi said there was unanimity in the GoM that businesses would have to file only one return every month, instead of GSTR-1, 2 and 3 as was conceived earlier.
