tax collection in the investigation

GST Returns: Panel for single stage Returns filing process

New Delhi: Considering the process of single stage returns filing instead of the three-phase system of goods and services tax (GST), the panel appears to be with its largest procedural overhaul. The purpose of this step is to reduce the compliance load for businesses.

“The committee is looking at 12 filings a year instead of many more at present.” a source told 

Panel started filing in GST

For example, sources said, people with zero tax liability will be allowed to move directly in the final section of Return Tool instead of navigating the form. Apart from this, a staggered filing system is being considered where big players, who account for the majority of taxes, file first, while small businesses come forward.

Most businesses will be happy because the complications of filing returns were cited as a major hurdle, in which the government had asked to opt for the quarterly filing, in addition to leaving the returns for the time being.

The current three-level filing process starts with a seller who uploads the invoice before confirming by the buyer. In the third phase, the tax liability is calculated, the tax is paid and returns are uploaded. If the invoice is not matched, the return is not filed.

As part of the proposed change, the returns will be allowed to be filed, but in the subsequent months the tax authority will submit a mismatched return and the buyer will have to ensure that all taxes are paid by its vendors and sub-vendors. A similar system is currently followed in Maharashtra, Gujarat, and Karnataka, resulting in payment and manual intervention, a tax adviser

“In the form of a concept, invoice matching should be continued under GST, for any measure to reduce the compliance burden on the taxpayers through backend matching, to eliminate the need for the process of filing a three-level return Welcome, ” M S Mani, a partner at consulting firm Deloitte India, said.

“Combining three returns into a single quarterly return will surely simplify the system. However, it is important to ensure that the concept of invoice matching through the GSTN platform continues to avoid the need for the businesses to deal with it at the time of audit or assessment. Also, it will again be a major change in the return process, both for GSTN and industry. It is, therefore, important that the new system is implemented after adequate due diligence, industry consultations, and testing,” Pratik Jain, a partner at consulting firm PWC India, said.

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