Friday, January 19, 2018

More GST relief: Rates cut on 29 goods & 53 services
Govt Signals Move Towards 1-Stage Filing


TIMES NEWS NETWORK

New Delhi: The Centre and states on Thursday decided to reduce goods and services tax rates on over 80 items, while deciding to start the move towards a single-stage filing instead of the current threestage form, in what is seen as the biggest process overhaul

since the new regime kicked in last July. TOI had reported on January 16 that such a move was likely.

The list included 29 goods and 53 services, finance minister Arun Jaitley told reporters after a meeting of the GST Council, which has all state finance ministers as members. There was relief for those selling second-hand vehicles or buying diamonds and precious stones in addition to tickets for theme parks, ballets and dance performances as well as contributions to services provided by RWAs to their members.

Theatre performance in Indian language and entry to planetariums that cost less than Rs 500 will be exempted from GST, against Rs 250 now. There is also a move to reduce tax on small housekeeing service providers hired through e-commerce platforms from 18% to 5%. The new rates will kick in from January 25.

In addition, rates will be reviewed for 42 handicrafts, including products such as hand-made paper.


College entrance tests won’t incur GST

All exams conducted by educational institutions and services related to them will be exempted from GST. This means, college entrance exams will be outside the ambit of GST. Further, vehicles used to transport students, faculty and staff schools have been exempted.

Unlike the November meeting, which saw massive rate restructuring involving over 200 items, this one was a limited exercise, which is expected to leave a Rs 1,000-1,200 crore annual dent on the exchequer.

This time, the focus was on simplifying the filing process, which has come in for severe criticism. While it has been decided in principle to scrap the three stage process, the alternate mechanism is a work in progress but sources said the idea is to move to a single form. At the meeting, Bihar deputy chief minister Sushil Modi and GST Network chairman A B Pandey suggested various options based on discussions undertaken by groups headed by them, with Infosys chairman Nandan Nilekani joining the discussions too.

The Council discussed the possibility of retaining only GSTR-3B or the initial sales return, while asking sellers to upload their invoices. This will help tax authorities match the two and in case a difference is spotted, the taxpayer can be asked to explain and pay up, Jaitley said.

“It was finally culminating into filing 3B returns and supplier invoice, which would be adequate,” he said, adding that the structure will be finalised soon and the GST Council will decide on it at its next meeting. Asked if filing only one return is the way forward, he said “that seems to be the course”.

Officials were more forthcoming, suggesting that over a period of next few months, GSTR-3B returns will be done away with and only invoices will be the way forward to unshackle businesses from what they are claiming is a big burden. “Our analysis of 1.5 crore returns filed so far shows that 92% of the taxpayers file 50 invoices a month, which is less than two a day. So it’s not so much of a burden as people are making it out to be,” said an official.

Tax experts, however, wanted more clarity on the issue. “It appears that the onus of ensuring that appropriate input tax credits on a monthly basis will largely shift to the taxpayers and possibly a periodic audit process to ensure the same will be put in force, however we need to await the decision in the next meeting,” said M S Mani, partner at Deloitte India.

There were suggestions to make the system more robust to avoid inconvenience. “While simplification and merging multiple monthly returns into a single return would be good in concept, it needs to be ensured that invoice level details are made available to the buyers on a real time basis so that remedial action can be taken without waiting for assessment or audit,” said Pratik Jain, partner at PwC.

No comments:

Post a Comment

NEWS TODAY 21.12.2024