Union finance secretary Hasmukh Adhia today said the proposed new single page GST return filing system will be in place over the next three to six months as per which credit could be given on a provisional basis once the supplier uploads the sales invoice.
Suresh Nandlal Rohira, Partner, Grant Thornton India LLP said that “This thought conceived by the Government is an excellent step towards real simplification, as the entire nation was looking towards simplification to be achieved in compliances apart from taxes.
Plugging the leakages between GSTR 1 and 3b and logical matching concept to be brought in place would be prudent for businesses to curtail generation of fake credits.
In both the models envisaged, industry experts inter alia ourselves are in the process of providing suggestions and comments as to whether the provisional credit should not be granted unless the taxpayers file returns and pay taxes, or alternatively provisional credits could be granted to a taxpayer and post that reconciliation and returns to be filed within 3-4 months with payment of taxes, failing which the credit amount to be reversed.
The latter model would be widely accepted as not allowing provisional credits would impact the businesses at large for the entire nation culminating into negative sentiments on the implementation of GST.
Accordingly, simplification of Return in a one Pager form and allowing provisional credits considering the business situations would be a real boost to the economy, however necessary checks have to be built to mitigate illicit trade and credits.”
The meeting decided that businesses would have to file only one return every month, instead of GSTR-1, 2 and 3 as was conceived earlier. Also there was unanimity that there would be no system based matching and purchaser would have to verify the invoice uploaded by the seller offline. Recipient would be able to continuously see the invoice uploaded by the supplier and its tax payment status.
Supplier should be able to upload invoices at anytime basis and Recipient should be able to continuously see the invoice uploaded by the supplier.
The number of returns filed by both small and large taxpayers would be 12 in a year, in place of 36 at present.
Read Full Report-GST Return Filing simplification Model A and Model-B
Source- With Inputs from PTI