GST Council has proposed a single return form after consulting tax experts and industry leaders with the objective of simplifying the process for filing returns.
Anew model of return filing form, not very different in essence and content, has been worked out, which will be placed before the GST Council for approval. However, GSTR-3B will continue till the new form is introduced.
Last month, the GST Council discussed two models of GST returns. One of the models presented before the council insisted that provisional credit should not be granted unless the taxpayers file returns and pay taxes. The second model stated that provisional credit could be granted to a taxpayer but returns will have to be filed within four months.
After consulting the stakeholders, the centre worked out a third model for filing return as per which credit could be extended once the invoice uploaded by the supplier is verified by the purchaser on the GSTN portal. Explaining the contours of proposed model, an official said that the Central Board of Indirect Taxes and Customs is working on mechanism to deal with instances of non-payment of taxes even after availing credit.
The model for simplified return filing that is being worked out would safeguard revenue interest and avoid inconvenience to taxpayers. As per the structure being worked out, businesses having zero tax liability for six consecutive months may be required to file returns only twice a year.