A six-member advisory group consisting of industry representatives has recommended major changes in the goods and services Tax (GST) regime including abolition of reverse charge mechanism, deferment of e-way bill till 2019 allowing services in the composition scheme, a person close to the development said.
The panel submitted its report to Finance and Revenue Secretary Hasmukh Adhia on Tuesday. It has suggested to look at some alternate methods in place of e-way bill under the new indirect tax regime.
The group has also suggested changes on the returns filing front under GST including complete automation of refund process and one consolidated return in place of all types of GST returns.
“Return process should be simplified and rationalised. The input tax credit should be released within the same month. Matching and adjustment may be done later,” it has suggested in its report.
The group has also asked for continuation of the summarised return under GST, GSTR-3B, for one more year along with filing of all returns on a quarterly basis but payment of GST on a monthly basis.
It has also mooted the idea of doing away with HSN code in the invoices for easier return filing along with allowing revision of GST returns. Classification of items should be such that the raw material and finished product are in the same slab which would enable faster refunds, the group has suggested in its report.
The panel had received more than 700 representations on problems faced by industry over return filing, the e-way bill, input tax credit and exports, sources said.
The GST Council in its last two meetings has already announced a slew of measures to ease the compliance burden on small and medium enterprises under the indirect tax regime. The group consisting of industry representatives was formed to recommend changes to further simplify the process. Additionally, the government had also announced another panel headed by GSTN Chairman Ajay Bhushan Pandey to look into methods to simplify returns filing process for GST for this year. The recommendations by the advisory group are likely to be taken up for discussion in the next GST Council meeting that is likely to be held in early January, an official said.