GST (Goods and Services Tax) Council in its 28th GST Council meeting held on July 21st, 2018 (Saturday) in New Delhi under the chairmanship of Mr. Piyush Goyal (the union minister for Railways, Coal, Finance and Corporate Affairs) approved an enhanced and more simplified Format for GST Returns while keeping in view at the ease of small taxpayers, the council also introduced an option for filing the GST Returns on Quarterly basis.
Let’s take an example
If the supplier uploads the invoice no. 1 for the month of April on 8th of May and the invoice no. 2 of April is uploaded on 15th of May, the recipient will be able to receive the input tax credit for invoice no. 1 with the return of April filed on say 20th May. For invoice no. 2 he will be able to receive input tax credit with the return filed for the month of May, filed on say 20th of June.
This action will be treated as a self-admitted liability by the supplier and further proceedings will be initiated against him after reasonable show cause.
What will happen if the supplier (due to any reason) does not upload the invoice or relevant documents?
In such a situation, reporting of the missing invoices can be delayed up to two tax periods to allow the recipient to follow up and get the missing invoice uploaded from the supplier.
Let’s take an example
Purchase invoices received by the recipient in April on which input tax credit has been availed but not uploaded by the supplier shall be reported by the recipient not later than the return of June filed in July. Information about the missing invoice uploaded by the recipient shall be made available to the supplier. Taxpayers filing quarterly returns shall report for the missing invoices in the next quarter.
At the time of filing of the main return, liability declared in the return by the supplier shall be discharged in full which is, at present, done by filers in the present return FORM GSTR 3B.
Filers now would use a payment declaration form in the first and second month of every quarter. In this, self-assessed liability and input tax credit on self-declared basis shall be declared. But this will be full payment of the liabilities arising out of uploaded invoices only.
Prior to this 28th GST Council meeting held on July 21st, 2018 in New Delhi-
But now, regular taxpayers with a turnover of up to ₹ 5 Crores can now file GST returns on a quarterly basis. While, the Filing of Returns on monthly basis have been made compulsory for taxpayers having turnover above ₹ 5 Crores.
But now, Return Forms have been simplified too and now contain only two main tables – One for reporting outward supplies and another one for availing ITC based on invoices uploaded by the supplier.
But not with the ‘UPLOAD-LOCK-PAY’ process it is possible. Invoices now can be uploaded continuously by the seller and these can be continuously viewed/edited/rejected or accepted and locked by the buyer for getting input-tax credit. (To be enforced shortly in practice).
So, in a nutshell, we can say that this move by the GST Council has been aimed at increasing the ease of doing business for all the taxpayers. And just like developed countries, it will bring a fair and easy business concept in our country as well.
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