Welcome to our latest post on GST laws. The government may now propose more changes in GST laws to ease the rules and procedures for the businesses.

More changes in GST laws may include the following:

  • Simplifying the tax return filing process
  • To make Composition scheme simple
  • Whether to continue with reverse charge mechanism (RCM), tax deducted at source (TDS) and tax collected at source (TCS).

The Goods and Services Tax Council are likely to consider the recommendation of the law advisory group at its next council meeting in January at New Delhi.

The law advisory committee will submit its report on January 1, with some recommendations pertaining to amendments in laws and rules to make the new tax system simple, one of the officials said.

Certain changes  may require amendments in some of the five GST laws such as:

  • Central GST (CGST)
  • State GST (SGST)
  • Integrated (IGST)
  • Union Territory GST (UTGST)
  • GST (Compensation to states)

The amendments to the above GST laws will be done after the announcement of the Union Budget in February 2018.

The law review group will look at the provisions which need to be changed. Traders concerns will definitely be taken into consideration.

Since the GST implementation from July 1, 2017, the new indirect tax system has faced many difficulties. Owing to the troubles like lack of clarity on the filing of returns, errors in invoice matching and many technical issues the IT portal GSTN.

Also, the government has repeatedly extended return filing dates to ease compliance issues and simplify procedures. Currently, in the month of November, the Council allowed tax assessees to file only two sets of forms- GSTR-1 and GSTR-3B.

Currently, the small taxpayers with an annual turnover of less than 1.5 crores will file the returns quarterly. The taxpayers with a higher turnover will file the returns monthly.

The return filing process may change completely as the concept of invoice matching may not exist. “There are various possibilities such as bringing in fresh return forms and formats,” an official said.

Similarly, whether concepts such as RCM, TDS, and TCS will exist under GST or not will be decided by the law advisory group. The Council has currently deferred the implementation of all these concepts to March 31, 2018.

This ends our post on GST laws. What is your view on these upcoming changes? Drop a comment and let us know.