Finance Minister Arun Jaitley has arranged the Goods & Service Tax meet on May 4 in order to define simpler return form and revisions required in the indirect tax regime rules.
In the 27th meeting of the council, will include all the state finance ministers via video conferencing and will also think on the concept of converting GSTN into a Government Company.
In this meeting, a decision on the return simplification will be taken first into consideration with Sushil Modi-led Group of Ministers before presenting the council about the three models of new return form for discussion, one of the officials said.
Currently, Jaitley has been advised by the doctors to stay in isolation in order to avoid being affected by infection. Hence, the meeting has been planned via video conferencing.
Earlier, the council held in March has conducted the discussion on the two models of GST returns and suggested should work on the further simplification. The official said that the amendment to the law will also be taken into consideration as soon as the Council clears the new GST return format.
One model suggested to the council was that the provisional credit should not be granted unless and until the taxpayers file returns and pay taxes. The second model indicates that the provisional credit can be granted to the taxpayer, but returns must be filed within three-four months. It also indicated that the taxes must be paid, or else the credit amount would be reserved.
Later on, they have taken advice from some of the stakeholders, the GoM in this month has worked on the third model for filing returns which states that the credit could be extended as soon as the invoice uploaded by the supplier is verified by the purchaser on the GSTN Portal.
Finance Minister Jaitley had earlier requested the finance secretary to “examine the possibility” of converting GST into a partial or 100% Government Company. GSTN provides the IT backbone to the new indirect tax rules.
Presently, five of the most popular financial institutions – HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment Co and LIC Housing Finance Ltd – hold 51% stake in GSTN, while the remaining stake is in the hand of Centre and states.
Thus, the finance minister will conduct GST Council meet on May 4, to Simplifying returns on new GST rules.