After the 27th Goods and Services Tax (GST) Council meet on Friday, Union Finance Minister Arun Jaitley announced a new and simplified return filing process, based on the recommendations of the Group of Ministers on IT simplification.
The key elements of the new return design are as follows:
One monthly return: All taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having Nil transaction shall have a facility to file quarterly return.
Unidirectional flow of invoices: There shall be unidirectional flow of invoices uploaded by the seller on anytime basis during the month which would be the valid document to avail input tax credit by the buyer. A buyer would also be able to continuously see the uploaded invoices during the month. There shall not be any need to upload the purchase invoices also. Invoices for the B2B transaction shall need to use HSN at four digit level or more to achieve uniformity in the reporting system.