GoM approves FUSION model for GST filing
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The Group of Ministers (GoM) headed by Bihar Deputy Chief Minister Sushil Modi on Tuesday worked out a new 'fusion' model for the tax filing by the companies, as it looks to simplify the return filing process under the Goods and Services Tax (GST). The ministerial panel was also unanimous that there should be only one return per month.
The panel met the industry representatives, tax experts and the state tax officials on simplifying the return process. Nandan Nilekani, non-executive chairman of Infosys, was also present in the deliberations. GST Network (GSTN), the IT backbone of GST, has been implemented by software firm Infosys.
As per the fusion model, the Input Tax Credit (ITC) could be given on a provisional basis once the supplier uploads the sales invoice, sources said.
The model presented before the panel had earlier suggested that the provisional credit should not be granted until the taxpayer pays taxes and files returns. The second model allows for granting provisional credit, even as taxes can be paid later. The credit is reversed if the tax returns are not filed within the stipulated time. Both the models were discussed during the GST Council meeting headed by Finance Minister Arun Jaitley last month.
Meanwhile, in today's meeting of the GoM, "fusion of both the models was deliberated for return simplification and will be presented to the GST Council for approval. Stakeholders have been asked to submit their suggestions in next seven days," Modi told a press conference after the meeting. Until, the simplification of GST filing is not finalised, GSTR-3B will continue, he added.
Once the issues related to invoice matching, provisional credit and reverse charge mechanism are sorted, the panel will decide on having only one return form. GSTR-1, 2 and 3 forms are likely to be merged to have a single simplified return filing. Currently, the businesses file GSTR -1 and 3B for sales return and summary return respectively. This system will continue till 30 June. #casansaar (Source - PTI, DNA)
The panel met the industry representatives, tax experts and the state tax officials on simplifying the return process. Nandan Nilekani, non-executive chairman of Infosys, was also present in the deliberations. GST Network (GSTN), the IT backbone of GST, has been implemented by software firm Infosys.
As per the fusion model, the Input Tax Credit (ITC) could be given on a provisional basis once the supplier uploads the sales invoice, sources said.
The model presented before the panel had earlier suggested that the provisional credit should not be granted until the taxpayer pays taxes and files returns. The second model allows for granting provisional credit, even as taxes can be paid later. The credit is reversed if the tax returns are not filed within the stipulated time. Both the models were discussed during the GST Council meeting headed by Finance Minister Arun Jaitley last month.
Meanwhile, in today's meeting of the GoM, "fusion of both the models was deliberated for return simplification and will be presented to the GST Council for approval. Stakeholders have been asked to submit their suggestions in next seven days," Modi told a press conference after the meeting. Until, the simplification of GST filing is not finalised, GSTR-3B will continue, he added.
Once the issues related to invoice matching, provisional credit and reverse charge mechanism are sorted, the panel will decide on having only one return form. GSTR-1, 2 and 3 forms are likely to be merged to have a single simplified return filing. Currently, the businesses file GSTR -1 and 3B for sales return and summary return respectively. This system will continue till 30 June. #casansaar (Source - PTI, DNA)
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