GST norms in for major revamp

Sanjeev Sharma

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Tribune News Service

New Delhi, December 8

A major revamp of GST regulations is on the cards making compliance easier for traders and small businesses with an advisory panel recommending as many as 100 changes in the report submitted to the government.

Among the major recommendations by the GST Laws panel are reverse charge mechanism should be abolished, e-Way Bill should be deferred till 2019 and efforts may be made to bring some alternate method in place of e-Way Bill, inter-state transactions should be allowed in the composition scheme, 1% tax in composition scheme for traders, manufacturers and restaurants.

Other recommendations include in place of all types of returns there should be one consolidated return, return process should be simplified and rationalised, input tax credit (ITC) should be released within the same month while matching and adjustment may be done later.

The advisory group of the Law Review Committee was set up at the 23rd GST Council meeting on November 2. It has submitted its report to the Revenue Secretary. The recommendations of the Advisory Group have been referred to the Law Review Committee, consisting of senior officers of the central and the state governments, which, in turn, will examine these recommendations and take a final view. The next meeting of the Law Review Committee is scheduled to be held on December 13-14.

The panel also recommended that the return should be filed quarterly but tax may be paid monthly, doing away with HSN code in the invoice for easier return filing, classification of items should be such that the raw material and finished product are in the same slab which would make refunds faster.

It has also suggested that exempted or nil rated goods should not be counted in the aggregate turnover, all job work should be taxed at 5%, service providers should also be allowed to take composition scheme and revision in returns should be allowed. It has also recommended threshold exemption of Rs 20 lakh to all types of commission agents and relaxations to casual taxable person.

Advisory panel’s recommendations

• Reverse charge mechanism should be abolished
• e-Way Bill should be deferred till 2019
• Efforts may be made to bring some alternate method in place of e-Way Bill
• Inter-state transactions should be allowed in the composition scheme
• 1% tax in composition scheme for traders, manufacturers and restaurants