GST Council approves making GST-Network a government entity; simplifies return filing process

Since its implementation on 1 July 2017, the GST Council has made some 376 changes by amending rules. Talking about the GSTN’s ownership structure, Finance Minister Arun Jaitley, the Chairman of the Council, said the GSTN is currently 24.5 percent owned by the central government, and a similar percentage is held by state governments collectively. Digital payments, sugar & ethanol Jaitley said the Council has referred the issue, of giving a two percent incentive for digital payments, to a five-member committee of state finance ministers. Experts’ take Abhishek Jain, Tax Partner, EY India, told Firstpost: “The GST Council in its 27th Meeting today has in principle approved the contours of the new return design; the said being in a phased manner with GSTR1 and GSTR 3B continuing for six months, single return with possibility of provisional credit for another six months and only a single return with credits of only invoices uploaded by supplier thereafter. Some of the highlights being a single return with staggered due dates basis turnover, real time credit eligibility basis invoices uploaded by suppliers, no reversal or recoveries in most scenarios from buyer on non- payment of tax, among others.” While some of the ideas are welcome, an inability, from a buyers’ standpoint, to upload missing invoices or take provisional credit, could lead to losses for businesses where the suppliers are not traceable and tax has been paid to them.