To mark two years of GST implementation, the Finance Ministry will on Monday unveil a new return filing mechanism besides a host of other reforms to simplify the indirect tax system. Ever since GST came into effect from July 1, 2017, the government has faced flak from the Opposition over its chaotic implementation and complexities.
Besides a new return mechanism, rationalisation of cash ledger system and a single refund-disbursing mechanism are the other reforms likely to be implemented.
The event will be chaired by Minister of State for Finance and Corporate Affairs Anurag Thakur with other key secretaries and officials from various departments present alongside, the Finance Ministry said in a statement.
The ministry said it will introduce the new return system on a trial basis from July 1 and on mandatory basis from October 1. “Sahaj & Sugam returns for small taxpayers are proposed,” it said.
With regards to single cash ledger, the government will rationalise the ledger in such a manner that earlier 20 heads are merged into 5 major heads, it added. There is only one cash ledger for tax, interest, penalty, fee and others.
Moreover, a single refund-disbursing mechanism will come into play wherein the government which sanctions refund disburses all four major heads of refunds namely CGST, SGST, IGST and cess, the ministry said.
“Threshold limit of Rs 40 lakh is offered of suppliers of goods as per the choice of states. Introduction of composition scheme for small service providers up to an annual turnover of Rs 50 lakh with a tax rate of 6 per cent, electronic invoicing system in a phase-wise manner for B2B transactions is proposed to be introduced and GST Appellate Tribunals are being established at various state headquarters and area benches also,” it said.