The 26th meeting of the council, held through a video conference, is expected to take measures that will make compliance easier for small businesses and traders, said the report.
A report states that in an effort to make GST compliance easier for taxpayers and to increase government revenue, the federal indirect tax body Goods and Services Tax (GST) Council can improve the process of filing returns and liberalize the rules.
On February 27, a meeting of the central and state government officials will finalize the proposal, before the Council will take it for approval on March 1, the person familiar with this development said on condition of anonymity. The 26th meeting of the Council will be organized through a video conference.
A report said that the council is expected to take measures that will make compliance easier for small businesses and traders.
The meeting is also expected to do away with the requirement of filing tax relating to the purchases and the comprehensive return on all transaction. It will only maintain the turnover summary return to be filled every month (GSTR-3B), on which information will be complemented by invoices of sales uploaded. That would be sufficient to provide the tax credit for buyers, whose transaction is reflected in the seller’s return.
Small and medium enterprises and traders in India have a large number of jobs, especially in rural areas, and form a politically significant constituency, which is formed after the polls
Being held in eight states are scheduled for later this year and national polls early next year.
In India, a large number of small and medium enterprises and traders contribute jobs, especially in rural areas, and a politically significant area is created, which the government does not want to antagonize when polls in eight states are scheduled for later this year and national polls early next year.
According to data available with the ministry of micro, small and medium enterprises, there are 36 million such enterprises in the country, half of them are in rural areas, accounting for employment of more than 80 million people and accounting for one-third manufacturing production, the report said.
The report citing the official said that businesses will be given a transition period of about six to seven months to migrate to the new return filing system, said the official cited earlier.
Meanwhile, the GST Council will reportedly have separate deadlines for small and medium enterprises, or SMEs, and large businesses. With the current deadline of the 20th of every month for filing returns and paying taxes for sales in the previous month, the government is facing a delay of more than a fortnight to get the tax payment. The idea is to let large businesses pay taxes by the 7th or 8th day every month and continue with the current deadline limit of SMEs.
It may be noted that glitches in the GSTN portal, cumbersome procedures and documentation are major areas of concern which need to be addressed to make the Goods and Services Tax (GST) a success.
A FICCI survey has said, “Problems like the delayed reflection of updated data as well as payments, delays in process of input credit set-offs, inability to upload heavy files of certain formats and lack of provision to modify or revise errors posed major challenges to businesses.”