Quarterly GST returns filing may be extended to all companies
The government may change the goods and services tax (GST) returns filing periodicity from monthly to quarterly to make it simpler for all businesses to file their taxes.
The requirement of filing three GST returns in a month is also likely to be brought down to one, government sources said.
The committee working on the simplification of GST returns is likely to give its report by this month-end, and the GST Council may take up the issue in its meeting in March.
Also read: Tax payers hit again! Modi govt reduces EPF rate to 5-month low of 8.55%
There are major concerns about the compliance requirements as it puts pressure on their resources. Those with a turnover above Rs 1.5 crore have to file monthly returns. However, the firms with up to Rs 1.5 turnover file quarterly returns.
Businesses, mainly small and medium companies, have been facing problems, given the scale of the monthly exercise. The companies with sales ranging from Rs 5 crore to Rs 250 crore fall in the small and medium enterprise category, as per the new definition of MSME.
Goods & Services Tax Network (GSTN) chairman Ajay Bhushan Pandey recently met industry chambers Ficci and CII to seek inputs on revamping the process of returns filing.
The government is working on to bring the invoice matching process in a simpler form, eliminating the need to file multiple returns, sources said.
With the simplification of invoice matching procedure, the taxpayers will be able to claim tax input credit faster. The proposed changes will allow recipients to claim input tax credit immediately after the simultaneous upload of invoices by seller and purchaser, sources said. This way delays in the monthly settlement cycle of the GSTN would not be there. Ficci has suggested removing restrictions on credit claims unless the recipient has received goods and services.
Service providers are demanding centralised registration. Currently, they have to register with every state where they provide the service. Ficci has suggested that utilisation of cash balance against tax liability should be allowed. Currently, it is allowed only in case of input tax credit claims against central GST, state GST and Integrated GST.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
11:47 AM IST