Recent GST changes from Friday's meeting
Forms, Deadlines and Penalties:
What has changed with the forms?
Up to November 15, when the decisions take effect, the GST system requires businesses to submit at least three forms to file their returns. The GSTR-1 dealt with the invoice-wise details of supply, GSTR-2 dealt with the receipts of goods, and GSTR-3 was an overall summary derived from the two previous forms.
Now, the GST Council has decided that, in order to ease the compliance burden on businesses, companies would be allowed to only file the GSTR-1 form, up to March 31, 2018.
The Council has set up a committee to look into how to make the GSTR-2 form easier, following which it will be brought back into the system.
The Council also decided to extend the usage of the summary GSTR-3B form, meant to make life easier for those unfamiliar with the filing process, till March 31 from the earlier December 31 deadline.
What has changed with the deadlines?
Normally, the GSTR-1, GSTR-2, and GSTR-3 forms had to be filed by the 10th, 15th, and 20th of the subsequent month, respectively. The GST Council decided to relax these deadlines for both small businesses as well as large enterprises, although in different ways for each.
Companies with a turnover of up to ₹1.5 crore a year will now be able to file their GSTR-1 forms for each month in a quarterly manner. That is, the GSTR-1 forms for July to September are to now be filed by December 31, the October to December forms by February 15, 2018 and the January to March forms by April 30, 2018.
Companies earning ₹1.5 crore or more a year can file their July to October forms by December 31. Thereafter, they will have to file monthly returns, but with a delay of 40 days from the end of the taxable period. That is, the returns for November will have to be filed by January 10, those for December by February 10, and so on.
What is the penalty now for filing late?
Not only did the latest Council meeting ease the deadlines, but it also slashed the penalties for filing late. For companies with nil tax liability for a particular month, the penalty for delays has been cut to ₹20 per day from ₹200 per day. All other companies will have to file a penalty of ₹50 per day, down from ₹200 per day. more
What has changed with the forms?
Up to November 15, when the decisions take effect, the GST system requires businesses to submit at least three forms to file their returns. The GSTR-1 dealt with the invoice-wise details of supply, GSTR-2 dealt with the receipts of goods, and GSTR-3 was an overall summary derived from the two previous forms.
Now, the GST Council has decided that, in order to ease the compliance burden on businesses, companies would be allowed to only file the GSTR-1 form, up to March 31, 2018.
The Council has set up a committee to look into how to make the GSTR-2 form easier, following which it will be brought back into the system.
The Council also decided to extend the usage of the summary GSTR-3B form, meant to make life easier for those unfamiliar with the filing process, till March 31 from the earlier December 31 deadline.
What has changed with the deadlines?
Normally, the GSTR-1, GSTR-2, and GSTR-3 forms had to be filed by the 10th, 15th, and 20th of the subsequent month, respectively. The GST Council decided to relax these deadlines for both small businesses as well as large enterprises, although in different ways for each.
Companies with a turnover of up to ₹1.5 crore a year will now be able to file their GSTR-1 forms for each month in a quarterly manner. That is, the GSTR-1 forms for July to September are to now be filed by December 31, the October to December forms by February 15, 2018 and the January to March forms by April 30, 2018.
Companies earning ₹1.5 crore or more a year can file their July to October forms by December 31. Thereafter, they will have to file monthly returns, but with a delay of 40 days from the end of the taxable period. That is, the returns for November will have to be filed by January 10, those for December by February 10, and so on.
What is the penalty now for filing late?
Not only did the latest Council meeting ease the deadlines, but it also slashed the penalties for filing late. For companies with nil tax liability for a particular month, the penalty for delays has been cut to ₹20 per day from ₹200 per day. All other companies will have to file a penalty of ₹50 per day, down from ₹200 per day. more
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The whole design of GST is wrong. The problems of our country cannot be solved by borrowed concepts and also not by people who are not innovative. In last 17 years of GST discussion, there was no talk of developing a system which is simple & robust for the size of the country and population. A computerized system is not a manual way of doing things that can be changed whimsically. It is the job of the system designer who has to come up with the configuration and layout of the system to migrate to a well designed advanced and integrated system that can deliver much more than present in coming times. If required, some changes in the present system of taxation also to be considered to simplify the system. All these things along with all other information like inventory, labour & capacity utilization of the whole economy should be available from the system so that proper development of the economy can be achieved with optimum utilization of resources including HR which is very important. But, the whole opportunity is lost because the whole idea of the exercise has been for tax collection only. And everybody knows that nobody wants to pay taxes willingly as it goes only one way to feed the corrupt bureaucracy and the powerful. Because of the non-inclusive nature of the GST, it will not be able to fulfill the requirements of the country. And now it has been proved beyond doubt that the whole exercise was taken up by people who are myopic and have no idea about how to develop a simple system for development of the economy and utilization of resources including HR and not just collecting taxes. It should be inclusive and transparent and if implemented properly in the form of an Expenditure or Transaction Tax, Income tax can be totally done away with. WE don't have to follow other countries for developing a system which is suitable for our country. more
Nov 13
Even Since Decades, there is the practice of returning for input concession/ subsidy but on certain Products those claim on Raw-material, chemicals . Tax Evasion multiplied into multiple Billion of Crores just in the Business Sector alone and became a must for submission of requisite returns to cap Evading tactics and really is the compulsory need at National Interest as well as to Guard the cost factor of general people . In fact, the issue is that the Business Sector is not realizing their basic duty of trustworthy performance in Businessing with the Citizens and are unable to come out from the continued habit of corrupt practices for EASY INCOME AND THE BEST PROFITS . Business without prompt Accounting of true transactions, presenting true, correct and fair Statement of Accounts NEVER TO BE ALLOWED IN ORDER TO CARRY FAIR ECONOMIC POLICY BOTH IN PRIVATE AND IN GOVERNMENT SECTOR. Traders & Businessmen need to utilize at least the Part time Accountants for submission of Returns of Turnover & Business as had been existent till 1990s. more
Nov 13
I am very disappointed the way the Finance Ministry and its related departments handled the GST - its formation, rates fixation, return submission etc. Further, the Infosys failed to provide a decent system to the public in general. Why the Finance Ministry didn't deliberate on the GST system sufficiently before being implemented it. Why the technical goof up was not tested by Infosys before the system getting implemented online. These are not accepted. These all show two things - either we have inefficient and ineffective personnel at the helm of the affairs or those holding such positions are not getting themselves involved. A chaltha Hai attitude. Unless we change this attitude we can't move forward. more
Nov 13
Yes, seem to be rolled out in a hurry and doesnt seem to be a well thought out and discussed at various levels, including details of project implementation of this initiative! Think the concerned Ministry, Secretariat and associated think tanks, though competent enough, failed to give their best on this subject! more
Nov 13
