This is one of the reasons why the government is pushing
for single comprehensive return form with details of
inward and outward supplies. This will reduce the number
of returns, help in invoice matching and have all
details in one place. It may be noted that the earlier
invoice matching system was suspended temporarily and
registered assessees were expected to file GSTR Form 3B.
Now, this will be done away with after the introduction
of the proposed comprehensive mechanism.
Last month, while briefing media about the new
mechanism, Modi had said the new form would be a kind of
fusion — with the option of providing provisional credit
and input tax credit linked with tax payment.
Accordingly, the new return mechanism is expected to
provide input tax credit (ITC) to buyer once the invoice
uploaded by the supplier is verified by him/her on the
GSTN portal even if tax is not paid by the sellers.
Experts believe a simplified ITC claim process is the
need of the hour to avoid waiting for confirmation,
acceptance from the recipient or tedious tasks of
uploading sales and purchase details to avail the
credit. “The next meeting should focus on adopting a
return model that does away with the need for the buyer
to be responsible for the sellers’ tax payments. In
addition, reverse charge on purchases from unregistered
dealers could also be considered for reintroduction,”
said MS Mani, Partner with Deloitte India.
Cess on Sugar
The Council is also expected to take up a proposal to
impose a 5 per cent levy on sugar. This is expected to
translate into an increase in retail price of up to Rs.3
a kg. Money collected through cess will be used to
provide financial support to the sugarcane farmers. The
cane farmers are having a tough time as they are not
getting sugarcane dues from mill owners, while mill
owners say that final product price is so low in the
market making things difficult for them.
Change in GSTN structure
The Council is also likely to take a call on converting
Goods and Services Tax Network (GSTN) into a
government-owned company from private company. At
present, HDFC, HDFC Bank, ICICI Bank, NSE Strategic
Investment Co and LIC Housing Finance Ltd together hold
51 per cent stake in GSTN while the remaining 49 per
cent is with Central and State Governments. Under the
new proposal, the Centre and States together will have
at least 51 per cent equity.
Source:::
Financial Express,
dated 03/05/2018.