GST Council meet: Single monthly returns for businesses coming, but not very soon

In attempt to increase compliance and simplify the process, the Goods and Services Tax (GST) Council today decided to introduce a single monthly return for businesses, but it will take as much as six months to get fully operationalised, informed Finance Secretary Hasmukh Adhia. Speaking to reporters, the finance secretary said that until the new returns system comes into force, the existing system of GSTR-3B and GSTR-1 will continue.
 
According to the finance secretary, simplification of GST returns filing has been a long-time agenda before the council, and added that single filing return will be applicable for everybody except for businesses opting for composition scheme and filing nil returns. 
 
Adhia stated that the new single monthly return for B to C will comprise details of total turnover, and for B to B will consists the details of all sales invoices along with 4-digit HSN code.
 
He also clarified that in the transition phase, the return design will have a separate column wherein dealer will be able to claim provisional credit at his own calculation for six more months, irrespective of whether or not the seller has uploaded the invoices.
 
The GST Council, however, deferred a decision on levying a cess on sugar, referring the issue of incentivising digital payments to a group of state finance ministers.
 
The panel has agreed to a proposal to convert the GST Network, which provides IT backbone to the new tax regime, into a government-owned entity. Announcing the decisions taken today, Finance Minister Arun Jaitley, who chaired the meeting conducted through a video conferencing, said a road map for introduction of simplified return filing has been decided.
 
According to the Finance Minister, the GST Network's 24.5 per cent is owned by the central government and a similar percentage is held by state governments collectively. The remaining 51 per cent is with five private financial institutions, including HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd.
 

Watch this Zee Business video of March 10 

Jaitley reportedly said the council agreed to a proposal of buying out the stake of private entities to make GSTN a government-owned entity, adding the central government will own 50 per cent and the remaining would be collectively held by state governments.