The government on Monday made public the draft version of the new proposed returns under the goods and services tax (GST) regime that propose single monthly return for all taxpayers except small taxpayers, composition dealers, persons liable to deduct tax at source or to collect tax at source and staggered return filing dates based on the turnover of the registered person. Small taxpayers with annual turnover of up to Rs 5 crore will have the option to file quarterly returns with monthly payment of taxes on self-declaration basis, the government said.
The small taxpayers having turnover up to Rs 5 crore will have to choose between three options — quarterly return, Sahaj or Sugam. Quarterly return shall be akin to the monthly but will not have the compliance requirement in relation to missing and pending invoices, non-GST or exempted supplies and the details of input tax credit on capital goods, though these details shall be required to be filled in the Annual Return.
‘Sahaj’ return will be the quarterly return for taxpayers with only B2C outward supplies and ‘Sugam’ for both B2B and B2C outward supplies.
The new model proposes a ‘Upload–Lock–Pay’ model for most taxpayers, wherein invoices can be uploaded continuously by the seller and can be continuously viewed and locked by the buyer for availing input tax credit. The new model proposes uploading of invoices by the supplier by 10th of succeeding month that shall be subsequently posted in the viewing facility of the buyer by 11th of next month, who will then lock those invoices.
Nil return filers, that is taxpayers with no purchase and no sale, shall be given facility to file return by sending SMS.
“Invoices uploaded by the supplier by 10th of the next month shall be posted continuously in the viewing facility of the recipient and the taxes payable thereon which can be availed as input tax credit shall be posted in the relevant field of the input tax credit table of the return of the recipient by 11th of the next month. These invoices shall be available for availing input tax credit in the return filed by the recipient,” a note on the new returns released by the government said.
However, invoices uploaded after 10th of next month by the supplier shall get posted in the relevant field of the return of the subsequent month of the recipient though viewing shall be continuous, it added.
As per the new proposed returns, input tax credit will be dependent on uploading of invoices by the supplier within the prescribed time limit. “Only the invoices or debit notes uploaded by the supplier on the common portal shall be the valid document for availing input tax credit by the recipient,” it said.
Invoices or debit notes which have not been uploaded by the supplier and on which recipient has availed input tax credit shall be “missing invoices” and if they are not uploaded by the supplier within the prescribed time period, input tax credit availed in relation to such invoices or debit notes shall be recovered from the recipient.
In its 27th meeting held on May 4, the GST Council had approved the new GST returns filing system, which will take about a year to come through. Finer details of the returns were approved by the Council in its 28th meeting on July 21 wherein it had also announced quarterly return filing and monthly tax payments for businesses with annual turnover threshold of up to Rs 5 crore as against the current threshold of Rs 1.5 crore, a move which is expected to benefit 93 per cent of the registered GST taxpayers.