GUWAHATI: The GST Board significantly eased the compliance burden for all businesses during the current fiscal year. In reviewing the whole process, he also proposed a higher exemption threshold for those who opt for the composition scheme that comes with a lower filing requirement.
The panel of finance ministers, led by Arun Jaitley, substantially reduced late filing fees to Rs 20 per day for those without tax liability and Rs 50 for others from Rs 200 per day today. But the big concession came in the form of ending the presentation of GSTR 2 and GSTR 3 during the current fiscal year. While small taxpayers and those without responsibility will have to follow a simple two- or three-step submission process, sellers with a turnover of less than Rs 1.5 crore will present GSTR 1 with quarterly invoices. Others will do it monthly and will follow it with GSTR 3B to help them take advantage of the tax credit supported, said Secretary of Revenue, Hasmukh Adhia.
“There is a need to amend the business processes and some of the forms can be reworked, but we will not renounce pairing invoices,” he said, announcing the modifications designed to facilitate compliance after the protests of small businesses. .
He said a panel headed by GSTN chairman Ajay Bhushan Pandey will examine whether the presentation of the second stage, which involves matching the bills charged by the states, can be simplified.
In addition, important changes were announced in the composition scheme with the panel of ministers proposing an amendment to the law to double the billing threshold to Rs 2 crore. But the ministers said the government intends to notify an increase in the limit to Rs 1.5 crore, from the current Rs 1 crore. The plan is intended to help small businesses fill out fewer forms, but does not allow the input tax credit.
As an additional concession, the government said that those with less than 1.5 million rupees of turnover with service revenues of up to 5 rupees per year can also opt for the mechanism.
“The impact on compliance may take a little longer to reflect as the presentation dates are extended, as the ecosystem and the backdrop of the technology continue to evolve, mature and stabilize, while the presentation has relaxed. , can bring latency among taxpayers. ” said Archit Gupta, founder and CEO, ClearTax.