Will the GST return filing to be made quarterly instead of monthly?

Introduction

The government of India is planning big changes in the GST law because it has not gone well between the taxpayers especially the small taxpayers. Further, out of all the prime changes that may be proposed, the idea of deferring the GST returns filing from monthly to quarterly and reducing GST tax rates can work as a big boon to all the taxpayers across country and can help in boosting growth.

As said, many taxpayers’ especially small taxpayers are facing difficulty in complying with the GST each month and hence, deferring the GST return on quarterly basis will really serve the purpose and will bring ease of doing business in India

Why it is most likely that GST will see big changes?

The Prime Minister Narendra Modi assured during his speech yesterday that he has asked GST council to review the problems being faced by traders & the government is willing to make changes as per the suggestions.

He further assured that Government very well understands the value of your hard earned money, our policies and schemes are focused at bettering life of the poor and middle class.  I will not let the present problems jeopardize the future of the country.

Hence, one can see that government is looking very flexible in the approach and therefore, will surely make changes.

The government may make the following changes to GST:

• The government may allow a large number of the taxpayer to file quarterly return instead of monthly return.
• Further, the government may introduce a saral (One page return) like return for small taxpayers having turnover up to Rs.20 lakhs.

• The government may also allow easier norms for taking ITC.

• The government will also introduce relief for exporters. It may also resume the advance authorisation scheme for exports under GST.

• The government may also provide the reduction in tax rates. E.g. the 28% may be reduced to 24% and for 12 & 18%, an average 15% may be introduced.

Further, as per report, the 95% of the taxes are paid by the 4 lakh entities and over 60% pays the remaining 5%. Hence, we can expect easier norms for over 60% taxpayers.

Further, the finance minister of West Bengal writes to Arun Jaitley to allow the taxpayers having turnover up to 75 lakh to file quarterly returns. Hence, now, it is more than a possibility that filing of return may be done quarterly instead of monthly.

Conclusion

In case you want to file your GST return, please email us at info@hubco.in.