Merging the suggestions received on two earlier proposed models for returns simplification under goods and services tax (GST), the Group of Ministers (GoM) chaired by Bihar deputy chief minister Sushil Modi on 17 April 2018 converged in favour of a third “fusion” model, wherein credit is proposed to be given on a provisional basis after the uploading of sales invoice by supplier tied to certain conditions.
A single-page return is being proposed and a final draft of the three models after incorporating inputs from stakeholders would be presented to the GST Council for it to take a final call. Till the simplified return filing process is finalised, GSTR-3B will continue. The GST Council, headed by Finance Minister Arun Jaitley and comprising state counterparts, had last month discussed two models of GST returns and suggested that the GoM would discuss further simplification.
As technical glitches arose and the industry complained of hardship in filing GSTR-2 on the GSTN portal, the Council in November decided to keep filing of GSTR-2 and 3 in abeyance till March. All businesses now file GSTR-3B every month. Businesses with turnover up to Rs1.5 crore have to file GSTR-1 every quarter, while those with turnover over Rs1.5 crore have to file the return on the 10th day of the succeeding month.
The GoM looking at returns simplification had last met in February but could not reach a consensus as states’ finance ministers flagged issues related to allowing input tax credit via simultaneous upload of invoices, but tax bureaucracy had opposed allowing input tax credit without being linked to tax payments under GST.