GST Council approves simplified return filing process

The GST Council, in its 27th meeting on May 4, 2018, approved simplified principles for filing return based on the recommendations of the Group of Ministers on IT simplification.

Simplified return filing process

One monthly Return: All taxpayers shall file one monthly return. Return filing dates will be spread over a period of time, based on the turnover of the registered person. The composition dealers and dealers having nil transaction will have to file quarterly return.

Unidirectional Flow of invoices: The seller needs to upload unidirectional flow of invoices anytime during the month. This would be regarded as the valid document to avail input tax credit by the buyer. Buyer would be able to see the uploaded invoices continuously during the month.

Simple Return design and easy IT interface: The B2B dealers will be required to fill invoice-wise details of the outward supply made by them, based on which, the system will automatically calculate his tax liability. Taxpayer will also be provided with user friendly IT interface and offline IT tool to upload the invoices.

No automatic reversal of credit: There will not be any automatic reversal of input tax credit from buyer’s side on non-payment of tax by the seller. In case of default in payment of tax by the seller, recovery will be made from the seller.

Due process for recovery and reversal: Recovery of tax or reversal of input tax credit will be carried out through a due process of issuing notice and order.

Transition: There will be a three stage transition in the new system. Stage I will be the present system of filing of return GSTR 3B and GSTR 1. GSTR 2 and GSTR 3 shall continue to remain suspended. In stage 2, the new return will have the facility to upload invoice-wise data and also facility for claiming input tax credit on self declaration basis.

Content of the return and implementation: Return will be simplified by reducing the amount of information required to be filled in the return. Government aims to introduce the simplified return design at the earliest to reduce the compliance burden on the trade.