The Goods and Service Tax (GST) is a kind of Indirect tax, which is used in our country on the supply of goods and services. These goods and services are categorized into five different tax slabs for collection of tax as- 0%, 5%, 12%, 18%, and 28%. This tax came into existence from 1 July 2017 by replacing the existing multiple taxes levied by the central and state governments.
Experts from the industry say that smooth execution sans technical glitches is critical for the revamped and simplified goods and service tax (GST) return filing system. Before its proposed roll-out in September, they have batted for adequate testing of the new facility by GST network. In July 2020, the roll-out of the Goods and Service Tax subsequently shows several glitches in return filing and multiple deferments of deadlines.
Mr. Harpreet Singh, partner for indirect taxes at KPMG India, a leading provider of Tax, and Advisory services highlights that the businesses would expect that adequate sandbox testing is done by GSTN and there are no perfunctory changes, which ultimately impact their current compliance set-up. The government is planning to link GSTR 1, which is a form used to fill the outward supplies, with GSTR 3B, used to fill returns summary, which will reduce the mismatch of information through auto-population and the linking would also lead to certain reduced cases of input tax credit mismatch, tax evasion, and also prevent unintended errors.
The new form GSTR 2B will be introduced for the taxpayers as a statement providing all the necessary details on available input tax credit and ineligible credit. The quarterly filing facility of GSTR 3B for taxpayers will less than Rs 5 crore annual turnover, is also in the pipeline.
Mr. MS Mani, partner at Deloitte India said that the linkages of the various pieces of information filed by taxpayers to minimize the manual data interventions so, taxpayers would assist all businesses. Instead of developing a new one, the government decided to revamp the existing system for ensuring the stability for taxpayers that have been complaining of glitches and errors in the system. Experts from the industry added that if a new system is planning to set up, it could have lead to changes in ERP systems, which would mean an additional cost of compliance for taxpayers.
