GST Council Approves Easier Return-Filing System, State-Owned GSTN
“Central govt to own 50 percent in GST-Network; states to collectively hold the remaining 50 percent,” said Jaitley.
The Goods and Services Tax Council today approved a simplified return-filing system and decided to make the GST Network a government-owned entity.
The central government of India will acquire 50 percent stake in GSTN while state governments will collectively hold the remaining 50 percent, Finance Minister Arun Jaitley told reporters after the GST Council meeting today.
The central and state government currently hold 24.5 percent stake each in GSTN while the remaining 51 percent is held by HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment Co and LIC Housing Finance Ltd., according to data on GSTN’s website.
The panel also approved a simplified return-filing framework. The software for the new filing system will be put in place in six months, Finance Secretary Hasmukh Adhia said. In the meantime, the current arrangement of GSTR-3B and GSTR-1 will continue, he added.
The transition to the new filing framework will take place in three stages, Adhia said.
Under the new framework:
- There will be one return per month for taxpayers except composition dealers and nil taxpayers
- Taxpayers will have to mention entire turnover for B2B transactions
- For B2B businesses, taxpayers will have to show all invoice details
- Based on taxpayers' calculations, they will be allowed to claim provisional credit for 6 months
- Input tax credit will be given only if seller has uploaded an invoice
- If seller does not pay tax, government will recover tax liability from seller
- If tax cannot be recovered from the seller, efforts will be made to recover the tax from the buyer as per law
Decision On Sugar Cess Deferred
- GST Council deferred the decision to introduce cess on sugar
- A Group of Ministers has been formed to assess the sugar cess.
- The committee will be announecd in next two days and a decision is likely soon.
- Sugar development cess would be imposed through an ordinance once the Council approves it
- Sugar cess could be up to Rs 3 per kg
Incentive For Digitised Payment
- GST Council formed a panel to consider incentive on digitised payments
- Commitee of five members will consider all points of view on incentive on digitised payments
- Majority of ministers at today’s GST Council meeting favoured a 2 percent incentive on digitised payments
- Another view was to have a negative list of items on which this incentive would not apply
- One member of the panel did not favour the proposal
(This story was first published on BloombergQuint and has been republished in an arrangement.)
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