The council also decided to turn GST Network (GSTN) into a wholly owned government company.
New Delhi:- GST Council has simplified the process of filing returns, giving great relief to the businessmen. Businesses now have to file only one GST return in a month. Those people whose turnover is Nil, will have to fill the returns once in three months.
This decision was taken in the 27th meeting of GST Council, through Video Conferencing, headed by Union FM Arun Jaitley. The Council has made this decision based on recommendations of the Ministerial Group headed by Deputy Chief Minister of Bihar, Sushil Kumar Modi.
Finance Secretary Hasmukh Adhia said that the New simplified system of filing returns will be implemented in three phases. Under the first phase, the existing system of filling GSTR-1 and GSTR-3B returns will continue for next six months. GSTR-2 and GSTR-3 will remain suspended in this period.
In the second phase, new single monthly returns will be implemented and they will be temporarily facilitated with an input tax credit(ITC). This will be followed by the third in which facility of temporary tax credits will be withdrawn and traders will receive input tax credit only after uploading the cell invoice of those dealers, so that they have purchased the goods. The third phase will start around May next year.
It was not decided to reduce cess on sugar and reduce GST on ethanol in the meeting. Arun Jaitley said that the price of sugar in the market has come down to 26-28 per kg whereas its cost is quite high.
To combat such a situation, the proposal for the cess came to the Council, but no decision was made on this. There is currently 5 %GST on sugar.