GST council meets today, quarterly return filing could be implemented for small businesses
New Delhi, October 6: The GST council will hold its 22nd meeting on Friday and is likely to consider to relaxing the return filing cycle for small and medium enterprises.
Implementation will begin on July 1 onward, the GST will replace 17 central and state taxes to unite the country as one market but has been facing starting trouble, Among all the challenges facing on the monthly filing of return and the glitches in the GST network portal.
According to reports, Senior government officials stated that a change in the return filing cycle was likely, “A quarterly return filing could be implemented for small businesses,”
Officials also added that the cut off of annual turnover which qualifies a company as small business will be decided by the GST council on Friday.Presently all business have to file three monthly returns and one annual returns. till Aug 28 approximately more than 36 lakh businesses had filed first tax returns under the GST regime out of a total of 68.2 lakh taxpayers and tweaks in the filing mechanism on small-scale businesses may help push up the compliance rate.
Reports say that On Friday the GST council may also consider reopening the registration for composition scheme for the third time.
The composition scheme is an alternative method of the levy of tax designed for small taxpayers whose turnover is up to Rs 75 lakh; Rs 50 lakh in the case of eight north-eastern states and Himachal Pradesh.
The objective behind it is to bring simplicity and reduce the compliance cost for small taxpayers.
This scheme is optional under the manufactures other than those of ice creams, pan masala and tobacco products have to pay a 2 percent tax on their annual turnover.The tax rate would be 5 percent for restaurant and 1 percent for traders.
Meanwhile, if the council approves the registration for the composition scheme will be open till March 31,2018 but the annual turnover for the businesses opting for the scheme may be increased up to Rs 1 crore,”
the Central GST Act says that the businesses are eligible to opt for the composition scheme if a person is not engaged in any inter-state outward supplies of goods and not making any supply of goods through the electronic commerce operator which is required to collect tax at source.
A composition taxpayer is not required to keep detailed records that a normal taxpayer is supposed to maintain.
The GST Council may also defer the reverse charge mechanism. The mechanism is one wherein the tax is applicable on a registered entity buying a good or service from an unregistered one.
This will be the 22nd meeting of the GST Council. Group of Ministers under Sushil Modi will set up to look into GSTN glitches are likely to brief the Council on the portal’s functioning.
Source say that approximately over 33 lakh businesses filing the final GSTR-1 return, and the GoM has tasked GSTN to send reminder text messages to the remaining 20 lakh businesses that are yet to submit the tax forms.
Mark the last date for filing of final sales returns for July in GSTR-1 form is October 10, While the date for uploading of purchase returns in GSTR-2 is October 31.
The final GSTR-3 matching GSTR-1 and 2, is to be filed by November 10.