Skip to main content

Businesses with nil tax liability may get to file GST returns bi-annually

Businesses with nil tax liability may get to file GST returns bi-annually


According to recent data, as much as 40 per cent of return filers under the Goods and Services Tax (GST) regime have nil tax liability and will not have to file monthly returns once the new simplified return filing procedure is finalised.

Businesses having zero tax liability for six consecutive months under GST may soon get relief once the proposal to allow such entities to file returns only twice a year gets the GST Council’s nod.
According to recent data, as much as 40 per cent of return filers under the Goods and Services Tax (GST) regime have nil tax liability and will not have to file monthly returns once the new simplified return filing procedure is finalised.
The GST Council, headed by Finance Minister Arun Jaitley and comprising his state counterparts, will at its next meeting consider the proposal to simplify the GST return forms.
“Taxpayers whose liability is nil for six consecutive months will be required to file six-monthly return,” an official told PTI. As per the proposal prepared by the revenue authorities, the return filing date would be spread out. Businesses having annual turnover of up to Rs 1.5 crore will have to file return by 10th of next month, while others can file return by 20th, the official added.
The number of returns filed by both small and large taxpayers would be 12 in a year. When GST was implemented on July 1, businesses were mandated to file three returns a month, and one annual return, taking the total number of returns in a year to 37. However, businesses complained about the complex nature of the filing process and also faced glitches on GST Network system.
Following this, the GST Council set up a committee to suggest a simplified return filing process. “The idea is to make return filing process simple and implement it in a phased manner,” the official said, adding that initially would be simple and on the basis of experience gained, more features would be added over time.
The official said after last date of filing of the return, businesses will get three months to rectify their returns by adding, modifying details or correcting the missing invoices. Thereafter, the input tax credit would be reconciled with the suppliers’ tax paid invoice.
The official said taxpayers having annual turnover below Rs 1.5 crore would not be required to quote harmonised system of nomenclature (HSN) in their return form. AMRG & Associates Partner Rajat Mohan said reduction in the number of returns and spreading out return filing date for businesses should solve most of the complications.
“However, anxiousness around matching the tax credit with tax payments still exists, trade and industry need to witness the extent to which credit matching mechanics would be made seamless, effortless and automated with the collective wisdom of software experts at GSTN,” Mohan said.
The GST Council at its meeting in November last year had set up a Committee for Simplification of return design under GST Network Chairman, and tasked it to come up with a simplified return form for taxpayers with nil liability. It had also kept in abeyance matching of invoice and filing of GSTR-2 and 3.
In December, the GST Network — the company handling the IT backbone for the new indirect tax regime — came out with “one-click filing” of GSTR-3B for those taxpayers who have zero liability. Currently, businesses file summary return GSTR-3B and final sales return GSTR-1.
Labels:
Location: Infobahn Networks llp, TC 11/415-3,Navodaya gardens, Nalanchira, Thiruvananthapuram, Kerala 695015, India

Comments

Post a Comment

Popular posts from this blog

Transaction types in e-way bill

Transaction types in e-way bill On the e-way bill portal, once you start to fill up the form to generate a new e-way bill, you will come across a section called “Transaction Details”. The first field within this section is “Transaction Type”. Now, if we recall the e-way bill rules, they state that an e-way bill is liable to be raised for primarily the following reasons – In relation to a supply Supply made for a consideration (payment) in the course of business Supply made for a consideration (payment) which may not be in the course of business Supply without consideration (without payment) For reasons other than supply – which includes job work, removal for testing purpose, send on approval basis etc. Due to inward supply from an unregistered person Based on the above mention e-way bill rules, the options are available in the e-way bill portal. In the “Transaction Type” field, you will need to select either “Outward” or “Inward”. You need to select the option as...
Post a Comment
Read more

Sephora Collection Bright Future Skin Tint Broad Spectrum SPF 25 Review

Sephora Collection Bright Future Skin Tint Broad Spectrum SPF 25 Review Skin Tone: Medium to Dusky Hello all, Recently, Sephora launched a bunch of new products as a part of their in-house collection. They came out with a bunch of lipsticks, foundations, eyeliners, tinted moisturizers and some skin care products. I was really intrigued by their ‘Bright Future Skin Tint’ because of its claims and decided to give it a try. So today, I am going to talk about Sephora Collection Bright Future Skin Tint Broad Spectrum SPF 25. Read on to know more. READ THESE FOR WEIGHT LOSS:   Diet Chart for Weight Loss  |  How to Lose Weight With PCOS  |  10 Best Herbal Pills for Weight Loss  |  10 Best Tricks for Lazy People to Lose Weight  |  Best Diet for PCOS to Lose Weight Price:  $18 Product Description: Which skin type is it good for?  Normal  Oily  Combination  Dry  Sensitive What it is: The Skin...
Post a Comment
Read more

Liability to Pay GST which is unpaid – For Stakeholders

Liability to Pay GST which is unpaid – For Stakeholders In our previous blogs, we have gone through the various provisions in place for recovery of tax, as well as some special recovery provisions. While these may work seamlessly in a normal scenario, there might be some special cases, where the due amount – tax, interest and penalty – may not be recovered from the taxpayer directly. In our next series of blogs, we will evaluate all such scenarios, and understand who has the liability to pay this due amount. Certain provisions have been defined to address the liability to pay GST which is unpaid, for stakeholders. Let’s see the various scenarios. Liability to pay GST – For Agent and Principal If an agent supplies or receives any taxable goods on behalf of his principal, then both the agent and the principal will be liable to pay unpaid GST, jointly and severally. This defines the liability to pay GST for both agents and principal. Liability of Directors of Private Com...
Post a Comment
Read more