GST Network to become 100% govt. enterprise; Ministers to study cess on sugar
The Goods and Services Tax Council on Friday decided to convert the GST Network into a 100% government enterprise, and implement a single form for GST filing from the current three.
At its 27th meeting, the Council also decided to create a Group of Ministers to review the plan for imposition of a cess on sugar. The cess was meant to subsidise sugarcane farmers as their production cost is much higher than the selling price.
Returns filing reconciled
The Council has also decided to create another GoM to consider implementation of a 2% incentive for digital transactions. “There has been a discussion over the last several months on one method of return filing that Nandan Nilekani had suggested and another that the officials from the State governments had suggested,” Union Finance Minister Arun Jaitley said at a press conference after the video-conference meeting. “The Sushil Modi Group of Ministers has found a reconciliation between the two.”
Finance Secretary Hasmukh Adhia said the Council approved a single, monthly return form that would become applicable in six months. The current system of filing the GSTR-1 and GSTR-3B forms would continue till then. “After six months, there will be a single monthly return for everybody, except composition dealers and those who file returns with zero transactions,” he said. “They can file quarterly returns.” After this, for six more months, businesses will be able to avail provisional credit in the new form, even if their sellers have not uploaded their sales invoices.
“During these six months, the GST Network will continuously feed the dealer data about what is the gap between what he is claiming as provisional credit and what is the actual amount he should be getting based on sellers’ invoices,” he said.