GST rules set to be simplified further
It is likely that the GST Council facilitates compliance, modernize soon the process of filing tax returns
The Federal Fiscal Code Council (GST) is ready to renew the filing process and further liberalize the rules to facilitate taxpayer compliance and increase government revenue.
March 1 for approval, said a person familiar with the development of anonymity. The 26th meeting of the council will be held through a video conference.
The Council is expected to take measures that will make it easier for small businesses and businesses, which account for most of the taxpayers, to comply, based on the recommendations of a panel led by M. Vinod Kumar, GST chief steward of Karnataka.
Expected to eliminate the requirement to file tax returns
It is also expected to eliminate the requirement to file tax returns related to purchases and a comprehensive return on all transactions.
It will replace only the summary statement for each month (GST return 3 B), whose information will be complemented with the sales invoices. That would be enough to grant the benefit of the tax credit to the buyers, whose transactions will be reflected in the returns of the sellers.
Small and medium enterprises and traders represent a lot of jobs in India, especially in rural areas, and form a politically meaningful constituency early next year.
According to the Ministry of Micro, small and medium enterprises, there are more than 36 million people in the country, which employ more than 80 million people and account for a third of manufacturing production.
Companies will be given a transition period of around six to seven months to migrate to the new filing return system.
Another proposal before the GST Board is to have different deadlines for small and medium-sized companies. or SMEs and big business. With the monthly filing of returns and the payment of taxes from the previous month, the government faces a delay of more than one tax refund to obtain tax payments.
This will allow income from taxes on anticipated income and reduce the IT system.
The federal agency is also exploring whether the government could account for these revenues in fiscal year 2017-18. The board will also consider other changes of a technical nature.
It is now essential to focus on stabilizing GST by moving to simpler compliance processes and fewer ongoing changes.
It is also necessary that the Council to announce a uniform date for electronic billing ways, which is currently suspended, initially in the interstate movements and the movements of the states from then on, Mani said.
The electronic permit for goods under GST preferably has a higher threshold than the prescribed value of Rs50,000, he added.
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