Wednesday, 25 April, 2018

Existing system of filing GST returns extended by 3 months: Jaitley

GST council meet GSTR-3B may be extended till June simplified return forms on cards Existing system of filing GST returns extended by 3 months: Jaitley
Nellie Chapman | 11 March, 2018, 09:30

An official statement issued after the Councils meeting said that the CBEC and GSTN have started detailed data analytics and preliminary data analysis has revealed that there is variance between the amount of Integrated GST (IGST) and compensation cess paid by importers at Customs ports and input tax credit for the same claimed in GSTR-3B.

The 26 th meeting meeting of the GST Council held Saturday made a decision to extend the available tax exemptions on imported goods for a further 6 months beyond March 31.

The Goods and Services tax Council on Saturday approved the roll out of the E-Way Bill across the country from April 1 and also extended the GSTR-3B form for another three months till June 30.

Tax exemptions for exporters have also been extended by six months.

In its February 24 meeting, a group of ministers headed by Bihar Deputy Chief Minister Sushil Modi recommended April 1 as the date for compulsory implementation of the system for inter-state goods movement. "Taxpayers will need to monitor developments in e-way bills and implement systems that that will consider the staggered manner of e-way bill implementation for intra-state transactions".

He said that in the meantime, the group of ministers will interact with information technology experts on further simplification of the system presented in the meeting and would come up with a model for its implementation.

E-way bill is generated where the value of the consignment transported exceeds Rs 50,000. Jaitley told reporters that further discussion was felt necessary to ensure that there is no evasion of tax in the hurry to simplify the process.

The GST Council also chose to implement e-wallet scheme for giving refunds to exporters under GST by 1 October 2018.

"As GST return filing is taking time to stabilise, eway bill can help detect and reduce tax evasion". So, no decision was taken today (Saturday).

The Council had in its October 6 meeting a year ago noted that exporters were experiencing difficulties of cash blockage on account of upfront payment of GST on the inputs, raw materials and finished goods imported or procured for the objective of exports. The issue of refunds to exporters has been hanging fire for over five months now, with exporters complaining that delay in GST refunds has blocked their working capital. The new indirect tax system GST was rolled out in July 2017 all across the country.

The GST Council also extended the reverse charge mechanism and TDS and TCS provisions for three months or till June 30. "Uncertainty regarding return filings, invoice matching etc is a cause for worry for industry as this creates a problem on how to prepare for compliances", Saloni Roy, Senior Director, Deloitte India said.