New Delhi: To mark two years of the GST implementation, the Finance Ministry will introduce new return filing system, which will replace the current system of GSTR-3B (summary returns) and GSTR-1 (supplies return). Besides, new return filing, the government is expected to unveil slew of other reforms such as rationalisation of cash ledger system and a single refund-disbursing mechanism. Also Read - LJP's Chirag Paswan Promises to Stand With PM Modi And His Beliefs Until Last Breath
The ministry in a release said that it will introduce the new return system on a trial basis from 1 July and on mandatory basis from 1 October. “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. Also Read - From Restoration of Article 370 to Blocking Bihar's Development: PM Modi Lambasts Opposition at First Rally in Sasaram | Key Takeaways
There is only one cash ledger for tax, interest, penalty, fee and others. 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. Also Read - Bihar Assembly Election 2020: Migrants Walked Kms Without Food & Water, Did PM Help You Then, Asks Rahul | Highlights
“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 ₹50 lakh with a tax rate of 6%, 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 added.
Notably, the new reforms will be introduced at an event, organised by the Narendra Modi-led government to celebrate the second anniversary of Goods and Services Tax (GST) rollout. Finance Minister Nirmala Sitharaman and her deputy Anurag Thakur will address the function scheduled to be held on Monday at Ambedkar Bhawan. It will be attended by senior officers of the central and state tax authorities.
On the intervening night of June 30 and July 1, 2017, GST came into effect across the nation amid a historic midnight session in the Central Hall of Parliament.
(With agency inputs)