In an effort to simplify the process of goods and services tax (GST) returns, ministry of finance is looking to bring about changes in GST law by introducing a finance bill in the upcoming budget session in the Parliament.

According to government sources, Centre and states are preparing proposals to amend GST laws. The amendments are likely to be taken up in the next GST council meet, on 18 January.

GST law tweaks are most likely going to be focused on simplification of returns and composition.

Officials close to the development said, GST law changes may come in budget session via finance bill if GST council gives a nod on 18 January.

GST council in its last meeting had reviewed the implementation of tax regime and announced a slew of measures to boost economic activity.

Finance Minister Arun Jaitley had said small businesses would be allowed to file tax returns once a quarter instead of monthly returns. The compliance burden of SMEs in GST had been cut while eligibility of composition scheme was raised to Rs 1 crore.

The move follows businesses complaining about problems in matching invoices while filing July returns. Businesses have also complained of trouble in invoice matching while filing GSTR-2.

The Council had decided that a group of ministers will study taxation regime for restaurants, especially on bifurcation on basis of AC & non-AC restaurants.

Small and medium-sized enterprises, crucial to Prime Minister Narendra Modi’s plans to create millions more of jobs, have been hurt by the massive tax overhaul that added layers of extra bureaucracy for firms and hit exports.

While a regular taxpayer has to pay taxes on a monthly basis, a composition supplier is required to file only one return and pay taxes on a quarterly basis.

With a view to easing compliance burden of taxpayers, the Council is also going to review the requirement of filing three returns every month under the GST set-up.

Businesses have to file returns in GSTR-1, GSTR-2 and GSTR-3 forms for every month. These forms detail outward supplies of taxable goods and/or services, inward supplies for claiming input tax credit and monthly returns.

 

Source: Yahoo 

 

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