The GST Tax

Trade with Zero tax liability may get to file GST returns twice a year

When GST was applied on First of July 2017, traders were mandatory to file 3 returns in a month, and  1 annual return, almost total 37 returns in a year.

Trade with Zero tax liability


Trade with Zero tax liability for last six months under GST may soon get relief once the proposal to allow such traders to final submit returns only two times in a year gets the GST Council’s nod.

According to recent data analysis, as much as 40 percent of return filers under the GST (Goods and Services Tax) regime have zero tax liability and will not have to file monthly returns once the new simplified return filing procedure is finalised.

GSTN Looking to Simplifying the return forms

The GST Council, headed by FM Arun Jaitley and comprising his state counterparts, will in council’s next meeting consider the proposal to simplify the GST return forms.

“Taxpayers whose liability is nil for six consecutive months will be required to file six-monthly return,” an official told PTI.

According to the proposal prepared by the revenue authorities, the filing date of return would be spread out. The Traders whose annual turnover of below to RS 1.5 crore will have to file the return by 10th of next month, while others can file the return by 20th of the next month, the official added.

The total 12 returns would be filed by Small and Large taxpayers in a year. when on other hands when the GST Regime was introduced july 01, traders were required to file 3 returns in a month and one annual return,  almost total 37 returns in a year.On the other hand, Traders complained about the complex system of the filing process and also faced fault on GST Network system.  After that, the GST Council set up a committee to suggest a simplified return filing process.

“The idea is to make return filing process simple and implement it in a phased manner,” the official said

Adding that in the initial phase system would be simple and on the basis of experience gained, more new features would include over time.

Fixing the Bugs system

The official said after last date of filing of the return, traders will get three months to amend their returns by adding, modifying details or correcting the missing invoices data.

After that, the ITC would be reconciled with the suppliers’ tax paid invoice. The official said that traders whose annual turnover below Rs 1.5 crore would not be mandatory to quote harmonized system of nomenclature (HSN) in their return form.

AMRG & Associates Partner Rajat Mohan said reduction in the number of returns and spreading out return filing date for traders should solve most of the complications in the current system.

“ However, anxiousness around matching of the tax credit with tax payments still exists, trade and industry need to witness the extent to which credit matching  mechanics would be made seamless, effortless and automated with the collective wisdom of software experts at GSTN, ” Mohan said.

The GST Council at its meeting in last year November had already set up a Committee for Simplification of return design pattern under GST Network Chairman, and tasked it to come up with a simplified return form for taxpayers with nil liability.

It had also maintained abeyance matching of invoice and filing of GSTR-2 and GSTR-3.

In December month, the GST  Network is non-profit, non-government organization handling the IT backbone for the new indirect tax regime — came out with “one-click filing process” of GSTR-3B for those taxpayers who have zero tax liability.

Currently, businesses file summary return form GSTR-3B and final sales return form GSTR-1.

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