After reducing GST rates over 300 items over a period from when GST has been implemented that is from 1st July 2016 now the goverment proposes significant changes to GST laws to provide an ease to all the business and GST users .
The changes would be simplifying the tax return filing process , composition scheme, whether to continue with reverse charge mechanism (RCM), tax deducted at source (TDS) and tax collected at source (TCS).
The GST Council-- headed by finance minister Arun Jaitley—is likely to cosider the recommendations of the law advisory group in its next meeting of January in New Delhi.
The law advisory committee will submit its report to make the new tax system simple.
However, certain changes could also require amendments in some of the five GST laws--Central GST (CGST), State GST (SGST), Integrated (IGST), Union Territory GST (UTGST) and GST (Compensation to states). The amendments will be done after the announcement of the Union Budget in February.
“The law review group will see what provisions need to be changed. Traders concerns will definitely be addressed.
Since its implementation from July 1, the new indirect tax system has faced criticism owing to the teething troubles including lack of clarity on return filing, errors in invoice matching, and major technical snags on the information technology portal GST Network (GSTN), among others.
The government has also, time and again, extended return filing dates. In a bid to ease compliance and simplifying procedures, earlier this month, the Council allowed tax assessees to file only two sets of forms—GSTR1 (for outward supplies or goods that they sell) and GSTR 3B (summary form) — instead of four earlier.
While small taxpayers with an annual turnover of less than Rs 1.5 crore will file quarterly returns (once in three months), those with a higher turnover will file monthly returns.
The return filing process may be changed completely as the concept of invoice matching may not exist.
Similarly, whether concepts such as RCM, TDS and TCS should be there under GST or not will be decided the advisory group.
The Council has currently deferred the implementation of all these concepts to March 31, 2018.