Simplified tax return filing system has been approved in the 27th GST council meeting which took place on Friday. The new scheme will come into effect after almost a year. Till the time the new system becomes effective, the existing system of GSTR-3B and GSTR-1 will continue. The GST council in order to make the system a fully government-owned entity which will also have equal ownership of states and Centre, it also approved the ownership structure of GSTN. GST council meetings are held frequently in order to check the loopholes and review the new tax regime which was implemented last year.
The council also discussed proposals for incentives for digital transactions and sugar cess over and above 5% GST and a cut in GST rate on ethanol, but no constructive step was taken in the meeting. According to the new system, the taxpayers except the composition dealers and those with nil transactions will have to file monthly return. As per reports, a 3-stage transition period has also been proposed following which the input tax credit will be provided only on the seller uploaded invoices.
The Goods and Services Tax marked a new era in the indirect tax system in the nation and was implemented in the presence of then President Pranab Mukherjee, Prime Minister Narendra Modi, Finance Minister Arun Jaitley and leaders of other parties including those in Opposition except the Congress party in Parliament’s midnight session. Implementing GST was the biggest reform in the indirect tax system in the country. Ever since the GST has been launched, there have been several council meeting which has taken place to improve the system based on the feedback from the industry.