GST council meeting conducted on Friday has solved one of the major issues of new GST tax regime by eliminating current three stage-return filing process and moving to only one monthly return. Earlier, the demand of return forms increased at the last minute, hence the centre and the state decided to roll out a new mechanism in the six months in order to ensure suitable preparation for the transition. Hence, Govt declares monthly GST return filing.
Apart from Finance Minister, also to convert Goods and Services Tax Network (GSTN) into a fully government-owned company. Also, they will hire professionals at the market-linked salaries. However, the council discussion on the imposition of sugar cess and other digital payments.
As per the new structure, companies like HDFC, HDFC Bank, ICICI Bank, Strategic Investment Company and LIC Housing Finance will give up their 51% stake in the GST network. Hence 50% stake will hold by the centre and states each.
Govt declares monthly GST return filing & New Ownership Structure of GSTN
New GST Return filing system
The IT’s main backbone GSTN will be provided 6 months to prepare and make adequate changes in the software in order to start new return filing format. Hence, all the taxpayers have to file GSTR 3B and GSTR1 form for the next six months.
In the current stage, the dealer will be continuously provided the information about the gap between the credit available to them according to the invoices uploaded by the sellers and provisional credit which is claimed by them.
In the final phase, which will take 1 year, provisional credit will be fully withdrawn and input tax credit will be only for the invoices which are uploaded by sellers from whom the dealers have purchased their goods.
The above entire process will take about a year, said finance and revenue secretary Hasmukh Adia.
According to the new system, most of the dealers will have to file only one return except for some composition dealers and assesses having no transactions as they have to file quarterly return.
New Ownership Structure of GSTN
The council decided to take the full 51% stake equity which is under non-government institutions in GSTN, which is equal to Rs 5.1 Cr and divided equally among centre and states.
Also, the government will hire the best people from the market in order to handle various GSTN tasks, Arun Jaitley said. GSTN will also be granted to continue to the current staff as per the current terms and conditions for the next five years. The current financial commitments which are provided by the centre and states to GSTN in order to share capital, operation and maintenance cost of IT systems will continue.
Presently, private institutions, HDFC, HDFC Bank, ICICI Bank and LIC Housing Finance Ltd, hold 51% stake in the GSTN. However, centre holds 24.5 % stake, and rest is owned by states, union territories and empowered committee of state finance ministers.
We hope that the new GST filing system will be helpful for all the taxpayers and new structure of GSTN will be beneficial to the Government.