The 27th GST Council was on Friday (May 4th), chaired by Arun Jaitley, Minister of Corporate Affairs. Here is a 2-minute takeaway pertinent to you as a business owner.
Simply put, when it comes to filing your returns, in this new amendment, the council has decided to reduce the return filing to a single return per month. This will increase the efficiencies in the Indian Taxation System. The HSN summary of the purchase is also now compulsory to avail GST, which will kick-in in stage 2 of the transition in the GST Tax Return system.
There will be a 2 stage transition to the new GST Tax Return. The current stage, Stage 1, will continue into the next 6-months. This mean the filing of GSTR-3B and GSTR 1 will continue but GSTR-2 and GSTR-3 will remain suspended for this period.
Post 6 months, as Stage 2 kicks-in, as mentioned earlier, the HSN summary of the purchase will be made a compulsory addition to avail GST Input.
Essentially, with the new plan, taxes will be filed and collected in one place, and GST Return will also now show the buyer invoices uploaded by the seller, thus allowing the buyer to check for discrepancies between the credit claimed by the seller and what is actually allowed to the seller.
Finally, when it comes to digital payments, there will be added incentives, but the nature of these incentives is yet to be decided.
Still a little confused? Don’t worry! Call us at Savage & Palmer to understand more about the Indian Taxation System and how your taxes are being filed by us!