It may recommend filing of one form every month to detail business transactions. A major respite could be on the way for trade and industry trapped in the GST maze. A law panel tasked to suggest changes in the GST law to make it simpler could recommend complete overhaul of rules to ease compliance burden.
Accordingly, it will recommend filing of only one form every month instead of current requirement of three forms to detail business transactions.
The report could be submitted to the all-powerful GST Council by December after incorporating inputs from the industry.
“Based on the recommendations from the law panel and GST Council’s view on them, the government will move amendments in the GST law,” an official said.
The panel, headed by M Vinod Kumar, GST chief commissioner for Karnataka, is considering an alternative to the three monthly GSTR forms. If accepted by the government, it could be announced in the next Union budget.
Government sources said the focus has now shifted from tax rates to compliance and return filing and therefore more steps would be taken in the coming months in this direction.
In the last GST Council meeting, it has extended the simplified form GSTR3B till March 2018, introduced simplified GSTR3B with indicative filing facility and form for those businesses, which have nil tax liability or have no transactions to file in invoice.
In a big relief to the industry, the GST Council had in its last meeting allowed taxpayers to file a simplified form GSTR3B form, introduced temporarily to reduce compliance burden, till March 2018.
It set up a committee under GSTN chairman Ajay Bhushan Pandey to look into making GSTR-2 and GSTR-3 simpler for the assessees. For filing of details in GSTR-1 till March 2018, the Council divided the taxpayers into two categories based on the taxpayers’ annual turnover.
Companies with annual sales of Rs 1.5 crore are required to file the GSTR-1 quarterly while those with a higher turnover are required to file the form quarterly. As per current GST law, businesses are required to file detailed returns for their transactions in three GST return forms relating to supplies made, purchases and a comprehensive one.
While GSTR-1 contains details of outward supplies of goods or services in the prescribed format, the GSTR-2 records details of inward supplies of goods or services.
The GSTR-3 is the monthly return filed by businesses registered on the GST portal on the basis of finalisation of details of outward supplies and inward supplies along with the payment of amount of tax.
The GSTR3B is a simple return form introduced by the CBEC for the months of July and August, following the roll out of the goods and services tax from July 1. But filing in this format has been extended to March 2018 in the face of difficulties faced by taxpayers in compliance.
“We would propose to allow filing of returns in GSTR3B form till the new tax regime stabilises. It may continue till March 2019,” said Praveen Khandelwal, national secretary general at Delhi-based Confederation of All India Traders (CAIT).
Khandelwal currently serves as member on the GST advisory panel formed by the government to give suggestions to make the indirect tax regime more business-friendly.
The other members of the group are Araghya Sen Gupta, research director, Centre for Legal Policy and Om Prakash Mittal, president, Laghu Udyog Bharti.  The committee would submit its report to the law panel by November-end.

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