The Goods and Services Tax (GST) Council has approved the new and simplified returns filing format, in which SMS system has been enabled to ease the filing process for nil taxpayers. Businesses, who are nil filers, where there is no supply or purchase in a quarter, can file their quarterly returns through SMS. The new system is likely to be implemented from January 1, 2019.
A new return system has been approved by the GST Council wherein the nil filers where there is no supply or purchase in a quarter, the return can be filed by sending an SMS, news agency PTI reported quoting GST Commissioner Upender Gupta.
The approved new GST filing system will be based on ‘Upload – Lock – Pay’, and is expected to bring down the time of filing returns. The new returns system will have two main tables for reporting supplies and availing the Input Tax Credit (ITC). However, the filing system will be finalised after consultations with the stakeholders.
A draft of new GST returns form will be put in the public domain by next week to seek consultation from businesses, traders, CAs and other industry members. The simplification of GST return filing has been a long-time agenda, which was discussed in multiple GST Council meetings. On May 4, the GST Council gave in-principle approval to the new filing system and finally approved it on July 21 at the 28th GST Council meeting.
Until the new system kick-in, it is likely for the current return filing system of GSTR-1 and GSTR-3B to continue. The government is also hoping to get the GST Amendment bill passed this monsoon session. The decision on hiking the threshold for composition dealers from Rs 1 crore to Rs 1.5 crore is also on agenda.