The Simplified returns are to be introduced under GST for simplifying the complexities in the present return system. While the new GST system would be relevant for all taxpayers in India from October 2019 onwards, the pilot for the same has just been presented on the basic portal on a preliminary premise (Voluntary applicability for taxpayers). While the Indian taxpayers set themselves up for GST 2.0, we should view the key changes, a taxpayer will have to adhere to under simplified GST Returns.
Key changes in Simplified GST Returns
Under the Simplified Returns system, a taxpayers may see the given below 5 key changes in the return filing system:
Characterizing Taxpayer’s Profile:
Since the simplified return system gives the taxpayer with different choices to browse, another module, in particular the Taxpayer’s Profile will be presented under a simplified return system. The Taxpayer’s profile will assist the taxpayer with setting their preferences they wish to pick in for, for example, the kind of returns, frequency, and so on.
The decision shown by the taxpayer on their profile will help GSTN gateway to decide/show the returns applicable to the taxpayer and the game-plan that should be followed.
Uploading Invoice details alongside HSN:
According to the current GST situation, the GSTR 1 information would include invoice level data, wherein the information used to be accumulated at rate level. In any case, under the simplified returns, taxpayers will likewise be required to file HSN related information alongside the invoice level information in their ANX 1.
Chopping down of disclosure necessities:
The simplified GST returns will likewise require information on the state or total level rather than detailed or line level information, in this way reducing the measure of information a taxpayer was required to reveal for their transactions, for example, B2CL, Advances, ITC, and so forth.
Formalizing Channel for ITC Claim:
As of now, in order to claim ITC, the taxpayer was required to self-figure his/her input tax credit and furnish the claim. Therefore, for any error found between the ITC claim and GSTR 2A, the government would send a notice for the same. However, the simplified GST returns will regularize the entire ITC claiming procedure, for example rather than self-declaration of ITC, taxpayers should route it through their GST returns and annexures.
Auto-Computed Main returns:
Differentiating to the current GST system, where the taxpayer is required to file their monthly returns on a self-declaration premise, the main returns under new GST return system will be determined by the government dependent on the data put together by the taxpayer and the provider in the annexures, alongside the taxpayer’s tax liability.
For more details or queries, please contact Certicom Consulting.