GST return filing to get simpler in six months

GST return filing to get simpler in six months

FPJ BureauUpdated: Wednesday, May 29, 2019, 09:37 AM IST
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New Delhi: Finance Minister Arun Jaitley chairs the 27th GST Council meeting through video conferencing in New Delhi on Friday. PTI Photo (PTI5_4_2018_000112B) |

Digital payments to get fillip, panel to look into sugar cess proposal

New Delhi : The Goods and Services Tax (GST) Council on Friday veered around to giving up to Rs 100 incentive for digital payments for purchases by consumers and approved a new model for single monthly return.

The panel, however, deferred a decision on levying a cess on sugar after opposition from some states.

Later in the evening, the Union Finance Ministry announced setting up of two panels of state finance ministers — one for looking into the issue of cess on sugar and the other on incentives on digital payments.

The group of ministers on sugar cess will be headed by Himanta Biswa Sarma (Assam finance minister) and the one on promoting digital payments under GST by Sushil Modi (Bihar Deputy Chief Minister).

Finance Minister Arun Jaitley said all taxpayers excluding a few exceptions like composition dealers shall file one monthly GST return in place of multiple filings currently required in a month.

Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having nil transaction shall have facility to file quarterly return.

Finance Secretary Hasmukh Adhia said the monthly return filing system will come into force in six months and the present system of filing of return through GSTR 3B and GSTR 1 forms would continue for not more than six months.

The council also referred the issue of incentivising digital payments to a group of state finance ministers after some states wanted a negative list.

Most member states on the panel were agreeable to the proposal of giving a concession of 2 per cent in GST rate (where the tax rate is 3 per cent or more) on business-to-consumer (B2C) supplies, for which payment is made through cheque or digital mode, subject to a ceiling of Rs 100 per transaction, so as to incentivise promotion of digital payments.

But since some states wanted a small negative list, the issue will be referred to a five-member group of state finance ministers, Jaitley said.

A separate group of ministers would go into the issue of levy of cess on sugar and reduction of GST on ethanol.

While the cost of sugar production is over Rs 35 per kg, the market price is around Rs 26-28 a kg, he said, adding cane growers are in deep distress and a proposal to levy a cess was made to help them.

“Now since this (suggestion has been made) after the GST has been implemented,” he said, referring to GST roll-out from July 1 last year where a cess on top of GST rate was imposed only on luxury and demerit goods like cigarettes and high-end cars to make up a kitty to compensate states for their losses due to implementation of the new tax regime.

Network set to become state-owned entity

NEW DELHI: The GST Council on Friday approved converting the GST Network into a majority state-owned company, Finance Minister Arun Jailtey said. The states and Centre will equally share the entire 51 per cent stake presently held by private entities in the GST Network amounting to Rs 5.1 crore, the finance ministry said.

Currently, the Centre and states hold 24.5 per cent stake each in GSTN, while financial institutions such as HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment, and LIC Housing Finance hold the remaining 51 per cent stake in the company.

“It was agreed that this 51 per cent held by private entities should be taken over by the government and eventually the Centre will hold 50 per cent and state governments will hold 50 per cent. The collective share of state government will be pro-rata divided among states in accordance with their GST ratios,” Jaitley said. The Council recommended that the GST Network continue to employee individuals contract-ually and will be allowed to keep their existing staff under the current terms for a period of up to five years, it said.

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