GST Filings: New Monthly Tax Return Form from July 2019 By Athulya - May 21, 2019 Last Updated at: Jan 15, 2021 0 3969 GST Filings New Monthly Tax Return Form From July 2019 As new government will be coming into power in the month of June this year. There will be revaluation of most of the taxation laws. Therefore, The GST system will be made easier and better. The GST Council will have a look at the new format of GST system. There’s news floating around that a simplified monthly GST format which had been approved by the Tax Council is ready and will be rolled out soon enough. With a new Government coming into power in June 2019, it is more than likely that the new taxation laws will come into effect then. This new format had been deferred twice by the GST Council. Here’s a look at the significant changes it introduces and what its impact would be. Browse through our articles on servies provided at Vakilsearch, and just let us know if we can help you with your company registration or tax filing or trademark registration. Register a Company PF Registration MSME Registration Income Tax Return FSSAI registration Trademark Registration ESI Registration ISO certification Patent Filing in india Major Changes Under this new system, all significant taxpayers have to file monthly return statement, with only a few people being excluded from this list. People who have no tax liability or tax credit must also submit a ‘Nil’ return for each quarter. Meanwhile, taxpayers whose turnover exceeds Rs 5 crore must file quarterly returns and declare their payment of taxes every month. Make Your Business GST Ready Government officials had stated that while the new form is expected to roll out under the new regime, it was slated to do so in January and then again in April but got delayed because the GST network (GSTN), had not been fully completed yet. Also, it was thought that introducing a new scheme which might have glitches would go against the Government’s best interests so close to the election and would help increase public disgruntlement. The Aim As the new set of rules might finally see the light as it comes as a solution to the complaints of people regarding the difficulties associated with filing multiple returns in a year and the excessive costs involved in maintaining compliance. Prakash Kumar, who functions as the CEO of the GSTN, had the following to say regarding their vision when he spoke to the Indian Chambers of Commerce and Industry, “For the next six months, this is going to be our focus. We are working on the system. We expect it to be fully implementable by the end of this year. It will remove many of the current difficulties that are being faced.” The Plan The three-stage plan aims for a six-month transition phase wherein everyone, people and companies included would have to file both GSTR 1 and GSTR 3B. Following this, the shift would occur, and they would be expected to submit just one return. For consumer business, the filing would be concerning total sales while in the meantime for B2B companies, the form would also have to include invoice details and other such purchase details. The third phase of the shift would then involve invoice matching and aggregation. The new scheme will reduce the load on companies as they will witness a decrease in the number of forms they have to file as it will drop from 24 in a year to just 12. This will come as a welcome move that will benefit small and medium enterprises. Under the Indian taxation system, all the goods and services are categorized into 6 slabs. It is significant for all business people to know under which category their goods or services fall. The GST rate finder service is used to find the GST rates of all the goods and services. This service is also referred to as the HSN finder. By using the HSN finder, we can also find the HSN codes for goods and services. “The new mechanism should help the industry as a multiplicity of filings is avoided, with a single monthly return in place. However, greater control needs to be exercised on the vendor’s compliances as input credit will be limited to the extent of the GST amount reflected on the portal. The government, on the other hand, would expect a significant reduction in tax leakage once the new mechanism is fully implemented,” concludes, Pratik Jain, a partner at PwC. He believes that valuation and constant verification would have to be done concerning the establishment’s purchase records and the report submitted by the vendors. The Earlier Issues Several government officials have stated that even the first GST system was fully automatic but had to be reverted to a manual basis because the people were not able to file their returns correctly. Hence, in more ways than one, it was the lack of access to technology that led to the failure of the GST. As the Council was tasked to work towards a strict deadline, the system they rolled out had glitches in them and this coupled with the inefficiency of the people to adapt to a new system led to several issues regarding the collection of tax. The new system is being looked upon as a considerable improvement to the old one, and it is expected that this shift will help both the taxpayers and the tax collectors. Economists explain that having a single return would help traders verify the vendor’s invoices and also help report mismatches between the actual purchase details and what has been uploaded by the vendor. Also, the new format ensures the automatic filing of returns based on invoices uploaded. This helps to make the entire process a lot simpler and easier to execute for both the buyer, seller and trader who functions as a go-between. It will also help improve and assist the taxation authorities’ efforts to detect false claims and prevent tax evasion. The next meeting of the GST Council is scheduled on July 21, and we might get a clear word by the end of that meeting regarding the future of the new GST regime. The new GST system will improve the tax system of the country. False claims will be detected and tax evasion will be prevented at the earliest. A meeting by the GST council will be held on July 21 for the changes to be brought in the Goods and Tax system. Can the taxpayer add invoices if the supplier did not upload the invoice? The invoices can be added by the taxpayer easily. If the taxpayer has complete control of invoices or received services, they can upload. Understand the procedure for GST registration and GST returns here. Never Miss GST Filing. Else, you have to bear the penalties and interests.