Skip to main content

GST amendments in Monsoon Session to make returns simpler

GST amendments in Monsoon Session to make returns simpler
The proposed GST changes will do away with filing returns under GSTR2 and GSTR3, modify the composition scheme, and eliminate ambiguities in the laws
The government is set to table amendments to goods and service tax laws in the monsoon session of Parliament to simplify GST returns filings, modify the composition scheme under which small traders can pay tax based on their revenue, and eliminate ambiguities in the laws.
The proposed GST changes will do away with the need for filing tax returns on purchases made by businesses, called GSTR2, and comprehensive returns called GSTR3. At the moment, these returns have been kept in abeyance and businesses only file sales returns, called GSTR1, and GSTR3B summary returns.
The GST Council had in May approved a new system where all taxpayers need to file a single return and small businesses need to file quarterly returns, after a six-month transition period, under the composition scheme.The focus has now shifted from tax rate changes, an official familiar with discussions in the GST Council said on condition of anonymity.
“Now the focus is on ensuring timely disbursal of tax refunds and encouraging compliance,” the official said. Another official said changes to tax laws on composition scheme, which has seen many instances of tax evasion, may depend on a decision on the reverse charge mechanism—wherein large registered buyers pay tax on behalf of small unregistered sellers, which has been kept in abeyance.
“Several amendments including those that will simplify GST compliance and improve ease of doing business in GST, are expected to be taken up in the monsoon session,” said M.S. Mani, partner at Deloitte India
The Economic Times, New Delhi, 11th May 2018

Comments

Popular posts from this blog

RBI minutes show MPC members flagged upside risks to inflation

RBI minutes show MPC members flagged upside risks to inflation Concerns about economic growth and easing inflation prompted five of the six monetary policy committee (MPC) members to call for a cut in the repo rate, but most warned that prices could start accelerating, show the minutes of the panel’s last meeting, released on Wednesday. The comments reflected a tone of caution and flagged upside risks to inflation from farm loan waivers, rise in food prices, especially vegetables, price revisions withheld ahead of the goods and services tax, implementation of house rent allowance under the 7th pay commission and fading of favourable base effect, among others. On 2 August, the panel chose to cut the repurchase rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points to 6%. One basis point is one-hundredth of a percentage point. Pami Dua, professor at the Delhi School of Economics, wrote that her analysis showed “a fading economic growth outlook, as …

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

Differential Tax Levy under GST: Food Firms May De-Register Trademarks

Differential Tax Levy under GST:Food Firms May De-Register Trademarks The government’s decision to charge an enhanced tax rate on trademark food brands is leading several rice, wheat and cereal manufacturers to consider de-registering their product trademarks. Irked by the June 28 central government notification fixing a 5 per cent goods and services tax (GST) rate on food items packaged in unit containers and bearing registered brand names, the industry has made several representations to the government to reconsider the differential tax levy, which these players say is creating an unlevel playing field within these highly-competitive and low-margin industries. Sources say that the move has affected the packaged rice industry the hardest and allowed the un-registered market leaders, India Gate and Daawat, to gain advantage as compared to other registered brands such as Kohinoor and Lal Qilla. Smaller players are even more worried with this enhanced rate of tax (against the otherwise …