Browsed by
Tag: GST Council meet

GST Council to select hybrid model for simplifying filing returns on Friday

GST Council to select hybrid model for simplifying filing returns on Friday

Comments 1 comment

In a relief for businesses, the GST 25th GST Council MeetingCouncil is to simplify filing of returns at a meeting on Friday, through a ‘hybrid model’ recommended by a panel led by Bihar deputy chief minister Sushil Modi.

The proposed model is a fusion between the recommendation by Infosys Chairman Nandan Nilekani and the ‘provisional credit model’ suggested by government officers. A buyer will get input tax credit based on the seller’s uploading of invoices, including missing ones. This would be irrespective of whether seller has actually paid the tax.

“The Council will discuss (this). It is expected to get acceptance,” said an official.

In the provisional credit model, the buyer would provisionally get input tax credit once he uploaded the missing invoices. This was to get reversed in three months if the seller had not uploaded the invoices and paid the tax.

“In the hybrid model, there will be no linkage to seller making the payment. A buyer will get credit as soon as a seller uploads the invoice. The buyer will not be denied any credit if the tax is not paid by the seller,” said the official.

Another officer said this could be a big positive for business as a whole. “How can a buyer control the seller paying taxes?”

“It would be unfair to business if non-payment of GST by the seller results in the buyer having to reverse credit already taken after paying the tax to the seller. Consequently, any model that does not require any reversal of bonafide credits would be welcome,” said M S Mani, partner at consultants Deloitte India.

In non-payment of taxes, the authorities will follow it up with the seller, based on the liability generated from the invoice upload. If the seller does not have money to pay or cannot be located, then the authorities would catch the buyer, the official said.

To make things easier, invoice uploads will be allowed on a daily basis, instead of on a monthly basis through the existing GSTR-1 form.

GST Network, information technology backbone for the indirect tax, has sought sufficient time to implement the approved return filing model. Hence, the current system of GSTR-3B (summarised return) and GSTR-1 (outward supply) will continue for the time being beyond June 30.

Source :  Business Standard
26th GST council meet on March 1: GSTR simplification, invoice matching likely to be in focus

26th GST council meet on March 1: GSTR simplification, invoice matching likely to be in focus

Comments 0 Comment

26th GST council meet

Invoice matching via simultaneous upload of invoices by sellers and buyers along with a broader focus on returns simplification will be the key focus area of discussion in the 26th meeting of the GST Council that is scheduled to be held on March 1 via videoconferencing.

As the deadline for suspension of GSTR-2 and GSTR-3 returns till March inches closer, the Council is aiming for returns simplification by converging towards one form. Filing of the monthly summary GSTR-3B return will be retained for now, two people close to the development said. The government proposes to bring back invoice matching, broadly facilitated by simultaneous upload of invoices by seller and purchaser, which will allow recipients to claim input tax credit immediately after the upload of invoice by the sellers instead of waiting for filing of returns.

The officials are also working on a turnover-based filing system, with big businesses beyond a certain threshold filing returns by 20th of a month and SMEs filing returns earlier than that to avoid clogging of the technological network of the indirect tax regime.

Officials from GST Council and Goods and Services Tax Network (GSTN) along with Infosys chairman Nandan Nilekani have been making presentations to stakeholders and approaching industry chambers for their inputs regarding the changes. GSTN chairman Ajay Pandey, who heads the panel on GST returns simplification, met representatives from the industry last week for their inputs.

“The new system proposes availment of input tax credit simply by uploading of invoices by the seller and the subsequent confirmation by recipient. Based on acceptance by the recipient, the input tax credit would get sealed, enabling increase in working capital with businesses. The move, if successful, will help the government to reduce the cost of compliance,” one of the persons cited above said.

In the last meeting of the GST Council on January 18, Nilekani had suggested a system of filing the summary GSTR-3B returns along with uploading of suppliers invoices (as was initially proposed via GSTR-1 return).

As per the presentation, ‘system matching’ provides for simultaneous upload of sales/purchase data wherein the buyer would be able to avail input tax credit on filing of purchase details at invoice level, a system which was followed in the earlier VAT regime before the July 1 rollout of GST. The new system proposes to have filing of one return and matching of returns by taxpayers, wherein they have to match only data under the mismatch category. The presentation stated that the buyer won’t be dependent on supplier to upload, but will be dependent on supplier for correction in the system matching option for GST returns.

Finance minister Arun Jaitley had said last month that the Council will finalise the return filing process in the next meeting. “Today it was discussed but not finally approved but it’s moving in that direction,” he had said.

When the GST was rolled out from July 1, taxpayers were mandated to file a simplified sales return 3B and also final sales returns (GSTR-1), purchase return (GSTR- 2) and finally two were required to be auto populated to generate GSTR-3. As technical glitches arose and the industry complained of hardship in filing GSTR-2, the Council in November decided to keep filing of GSTR-2 and 3 in abeyance till March. All businesses now file GSTR-3B every month. Businesses below Rs1.5-crore turnover have to file GSTR-1 every quarter, while those over Rs1.5 crore have to file returns on the 10th day of the next month.

Source: Indian Express
GST Council May revise rates of 70 to 80 Goods, Services, Streamline Returns Filing

GST Council May revise rates of 70 to 80 Goods, Services, Streamline Returns Filing

Comments 0 Comment

The GST Council is expected to accept the suggestions to ease the compliance burden to ensure better collections under GST.

arun-jaitley-gst council

The GST Council is expected to revise rates of 70 to 80 items and services in a meeting scheduled for Thursday. The GST Council, headed by Finance Minister Arun Jaitley and having state finance ministers as members, is also expected to simplify the process of registration, returns filing and claiming input tax credit (ITC) under the new indirect tax regime.

“In this meeting the Council is expected to revise rates of about 25 goods and another 45-55 services. Total 70-80 items’ rates could be revised downward,” an official, who is part of the rate fitment committee, told NDTV.

Rates of 5-6 irrigation equipment is likely to be lowered from 18 per cent to 12 per cent. Rates of bio-diesel and electric buses are likely to be slashed from 28 per cent to 18 per cent, official sources said.

On Easing of Compliance Burden

In a bid to make it easier to file returns under the new tax regime, the GST Council is also expected to discuss the recommendations of the Law Review Committee. “Several changes in the law have been suggested by the Law Review Committee. These changes would ensure easing the compliance burden of the taxpayers and in turn improve the collections under GST,” an official said.

Also read: Trial Launch Of GST E-Way Bill Scheduled In 🗓️ January 2018

The GST Council is expected to discuss the recommendations of the panel to allow single registration for large service providers who have a turnover of over Rs. 5 crore and are present in 10 states or more, like airlines and banks.

The Council is also expected to merge forms GSTR-1, GSTR-2 and GSTR-3 into a single form. Currently, traders have to file three returns very month. This is going to be reduced to a single filing every month.

“The simplification process might take about 6-8 months as changes will have to be done to the software. New format will have to be put in place so till that time extensions will be given for filings through GSTR-3B,” an official involved in the process said.

The Council is expected to accept the suggestions to ease the compliance burden to ensure better collections under GST.

Revenue collections under GST have declined by almost 14 per cent from Rs. 94,063 crore in July (GST was rolled out in July, 2017) to Rs. 80,808 crore in November.

Also read: GST overcomes initial hiccups to log 200 days, future in balance

Legislative changes are likely to be made to the procedure to claim input tax credit under GST.

“Traders, businesses have shared their pain points with us. We have reviewed these and we are now trying to remove most of these irritants. This meeting of the Council will try to address as many of these issues as is possible,” a third official source said, adding, “We will bring in a bill that will be introduced in the Budget Session of Parliament to make the amendments to the law. The states will also make the necessary changes to the state laws and get the approval of the state Assemblies.”

Changes in the law will also be made to increase the threshold limit for the composition scheme to Rs. 2 crore.

Currently, the composition scheme is available to traders with a turnover of up to Rs. 1.5 crore.

Bringing Sale Of Land, Natural Gas, Aviation Fuel Under GST

Proposals to bring natural gas, airline turbine fuel (ATF) and sale of land under GST will also be on the agenda. The GST Council meeting comes days ahead of the Union Budget scheduled to be presented on February 1.


Ease Your GST Filing & Invoice with XaTTaX GST Software

Source :  NDTV.com
Six Things You Must Know About the New GST Rates

Six Things You Must Know About the New GST Rates

Comments 0 Comment

GST-council-meet1

Tax rates on over 200 items, including beauty products, chewing gums, chocolates, coffee, and custard powder, among others, were slashed from 28 per cent to 18 per cent, Finance Minister Arun Jaitley said after the 23rd GST Council meeting in Guwahati. The council also made changes to the composition scheme. The GST Council also decided that taxpayers with an annual aggregate turnover up to Rs. 1.5 crore need to file return using form GSTR-1 on a quarterly basis, while taxpayers with a turnover of above Rs. 1.5 crore need to file it on monthly basis.

Six things you must know about the new GST rates

1) The GST Council pruned the list of items in the top 28 per cent Goods and Services Tax (GST) slab to just 50 from current 228. So, only luxury and sins goods are now in the highest tax bracket and items of daily use are shifted to 18 per cent. Mr Jaitley said that the Council over the months has been pruning items in the 28 per cent list.

2) Eating out becomes cheaper: All restaurants will be levied the GST at 5 per cent, without input tax credit (ITC) benefits. However five-star restaurants within starred-hotels with room rent above Rs. 7,500 will attract 18 per cent and can still avail ITC benefits, the council said. Outdoor catering will attract 18 per cent GST with input tax credit benefits.

3) The top tax rate of 28 per cent will now be levied on goods like pan masala, aerated water and beverages, cigars and cigarettes, tobacco products, cement, paints, perfumes, ACs, dish washing machine, washing machine, refrigerators, vacuum cleaners, cars and two-wheelers, aircraft and yachts. “These revisions in rates are expected to reduce prices and increase consumption and thereby bring growth for the consumer products and retail industry,” EY India said in a statement.

4) GST on 13 items has been reduced to 12 per cent from 18 per cent.

5) GST on two items has been brought into 12 per cent GST slab from 28 per cent bracket. Six items have been brought into 5 per cent from 18 per cent slab. GST on eight items has been cut to 5 per cent from 18 per cent.

6) Tax rate on six items has been lowered to zero from 5 per cent. Tax on wet grinders and armoured vehicles was cut from 28 per cent to 12 per cent. Tax rate on six items was reduced from 18 per cent to 5 per cent, on 8 items from 12 per cent to 5 per cent and on six items from 5 per cent to nil. To get a full list of tax cuts click here.

Experts and industry welcome the reduction in tax rates 

Industry has welcomed the outcome of 23rd GST Council. Shyam Bhartia, Chairman and Hari Bhartia, Co-chairman Jubilant Foodworks said in a statement, “We welcome the move by the Government of India to reduce GST on AC restaurants from 18% to 5%. This is a very progressive step which will make eating out and ordering food at home much more affordable for consumers and will lead to a significant growth in the organized restaurant segment.” “These revisions in rates are expected to reduce prices and increase consumption and thereby bring growth for the consumer products and retail industry,” EY India said in a statement.

“Reduction of rate from 28 per cent to 18 per cent on 178 items is a step in the right direction and is indicative of a policy shift from principle of ‘equivalence’ to what is right for GST structure and consumers. It would be good if the 28 per cent slab is further pruned in next few months which will lead to fewer tax slabs in next couple of years. Due to anti-profiteering provisions and market dynamics, this should lead to the reduction in prices for the consumers, Pratik Jain, Leader-indirect Tax of PwC said.

Angel Research believes that the rate cut should have the anti-inflammatory impact. “This massive pruning of GST rates should have an anti-inflationary impact on the economy and should compensate for the inflation impact of higher oil prices,” said Mayuresh Joshi, fund manager from Angel Research.

Also Read: GST Council prunes list of goods to be taxed at 28% to 50

The cut in tax will cost Rs. 20,000 crore in revenues annually.

In a bid to ease compliance burden for traders and businesses, fine for late filing of returns be cut to Rs. 20 per day from Rs. 200 for nil liability tax filers, Revenue Secretary Hasmuksh Adhia said.

A large number of taxpayers were unable to file their return in FORM GSTR-3B within due date for the months of July, August and September, 2017.Late fee was waived in all such cases, the council said.

Exports of services to Nepal and Bhutan have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming Input Tax Credit in respect of goods or services used for effecting such exempt supply of services to Nepal and Bhutan.

The GST Council extended the due dates for furnishing certain forms.

Source :  NDTV
GST meet today: Tax ease on cards, some daily use items may become cheaper

GST meet today: Tax ease on cards, some daily use items may become cheaper

Comments 0 Comment

GST meet today: Tax ease on cards, some daily use items may become cheaper

The crucial Goods and Services Tax Council meeting on Friday got underway to thrash out issues including a complete review of the 28% rate slab and composition scheme for small businesses and restaurants.

The review of the 28% slab aims to place the number of products in the lower slabs of 18% and 12%. A slew of products such as ceiling fans, cement, automobile components, electrical fittings, sanitary fittings, shaving cream, cases for spectacles, goggles could move to lower brackets.

Also Read: GST Panel begins review of GST laws to remove glitches

Composition scheme may be further simplified to ease the transition pain for small and medium enterprises as also restaurants. Besides, filing of returns may be allowed on quarterly basis.

The Council is also likely to take up a proposal to incentivise digital transactions.

Congress-ruled states have called for a complete overhaul of GST and a maximum rate of 18%.


XaTTaX: Cloud and On-Premises Based GST Filing Software For India

Source :  The Economic Times
GST council meeting: 24 states confirm participation

GST council meeting: 24 states confirm participation

Comments 0 Comment

GST council meet: 24 states confirm participation

As Assam prepares to host the two-day GST council meeting here from Thursday, 24 states till now have confirmed their participation in the conclave, finance minister Himanta Biswa Sarma said on Monday.

“The Guwahati meeting is significant because it will review the implementation of GST. In addition, the reports of three committees – on composition scheme, rationalization of rates and GST network – will also be discussed,” Sarma said.

Also Read:PM Modi indicates more relief measures at next week’s GST Council meet 

Andhra Pradesh, Mizoram, Nagaland, Sikkim and Tripura are yet to confirm if they will attend the meet. “Gujarat and Himachal Pradesh have informed they will be unable to attend the meeting because of assembly elections in their states. Union minister Arun Jaitley, who heads the council, will attend the meet along with the chief ministers and finance ministers of states. Chief economic adviser Arvind Subramaniam will also be present,” Sarma said.
The state expects over 200 participants to be present at the GST council, which Assam is hosting for the first time. On the first day, finance officers from the states and the Centre will congregate and the full council, headed by Jaitley, will meet on Friday.

Speaking about the impact in Assam, Sarma said revenue collection in the state went up from Rs 330 crore in August, a month after GST was rolled out, to Rs 486 crore in October.

Sarma, who is also the state’s tourism minister, sees the opportunity to showcase Assam’s potential as a tourist destination in the two days as well. “Many participants of the council meeting, visiting Assam for the first time, may like to enjoy the state’s beauty. Keeping this in mind, we have made arrangements to take the participants to some of the interesting tourist destinations. On Saturday, a trip to Kaziranga has been planned,” he said. Visits to the Kamakhya Temple and a Brahmaputra cruise are also lined up.


Ease Your GST Filing & Invoice with XaTTaX GST Software

Source: TOI
PM Modi indicates more relief measures at next week’s GST Council meet

PM Modi indicates more relief measures at next week’s GST Council meet

Comments 0 Comment

Narendra Modi : GST Council

PM Narendra Modi on Saturday indicated that the GST Council in its meeting next week will carry out more changes in tax measures to “strengthen” businesses and the economy, but seemed to be wary of the possibility of some state playing spoilsport.

“If no state puts any obstacles then in the GST Council meeting on November 9 and 10, I am confident that steps necessary to provide a new energy to the country’s businesses and economy will be taken,” Modi said at a function to celebrate the country’s sharp jump in the World Bank’s ‘ease of doing business’ rankings.

Also Read: Offline version for GSTR-4 preparation launched on GST portal 

The PM did not spell out what decisions the GST Council might take. However, the hint of major changes comes against the backdrop of unrest among small and medium businesses over GST and the recognition that assuaging some of the concerns will be crucial for BJP in the Gujarat polls.

In its previous meetings, the Council provided a string of relief for businesses to help them cope better with the new tax regime. A panel of state finance ministers have already dropped loud hints about pegging the rates lower. In fact, the PM stressed that issues raised by small and medium enterprises have been positively accepted by the Council in the past.

The GST Council, headed by finance minister Arun Jaitley, will meet in Guwahati on November 9 and 10 against expectations that more rate relief may be on its way. TOI had reported earlier that the Council may reduce the number of products in the highest slab, after state finance ministers pointed out that several common-use products face a 28% levy.

Also Read: Steps to ease method of filing GST returns

At least two state finance ministers told TOI that items such as bath fittings, cement, steel products used as rods for construction are in the top bracket. “The idea was to classify goods and services into merit and non-merit goods with the non-merit goods in the top bracket,” a state finance minister, who has usually sided with the Centre on most issues, had told TOI.

Officials in the indirect tax wing of the finance ministry also agree that there are too many items on the top slab. Jaitley too has indicated that in the medium term the aim is to move to fewer slabs.


Ease Your GST Filing & Invoice with XaTTaX GST Software

Source :  The Times of India