GST Council agrees on simpler return filing process

The Goods and Services Tax Council, in its 27th meeting on Friday, took a number of major decisions, including converting the GST Network into a 100% government enterprise, and implementing a single form for GST filing from the current three.

Finance Minister Arun Jaitley, while briefing the media following the video-conference meeting, said that the GST Council had decided that the government would buy the remaining 51% stake in the GST Network, but would maintain the organisation’s flexibility to hire from the market at comparable rates. The government currently owns 49% in the GST Network.

The GST Council also decided to create two separate Groups of Ministers to look into the possible imposition of a 2% incentive for digital transactions, and also the possible imposition of a cess on sugar to bring prices more in line with input prices, such as those of sugarcane.

Regarding the easing of the return filing procedure, Mr Jaitley said that the current system of filing GSTR-1 and the simplified GSTR-3B would continue for six months. Thereafter, GST filers would have to file a single monthly return. However, composition dealers and those filing nil returns will be allowed to file quarterly returns.

On the issue of provisional credit, Finance Secretary Hasmukh Adhia explained that, following the six months of filing GSTR-1 and GSTR-3B, businesses will be able to avail provisional credit for another six months, even if their suppliers have not uploaded their details. However, after this period, businesses will only get the benefit of input tax credit if their suppliers have uploaded the required details.