Authorities to introduce further reforms in GST to mark 2 years of rollout

Celebrating 2 years of the GST implementation, the finance ministry will on Monday give you further reforms inside the indirect tax system with introduction of new return system, rationalisation of cash ledger system and a single refund-disbursing mechanism, amongst others.

Minister of state for Finance and company Affairs Anurag Thakur will preside over the event along key secretaries and officers of numerous departments, the finance ministry stated in a launch on Sunday.

The introduction of GST was a game changer for the Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regime, it said.

The ministry stated it will introduce the new return system on an ordeal foundation from July 1 and on mandatory basis from October 1.

"Sahaj & Sugam returns for small taxpayers are proposed," it stated.

With regards to single cash ledger, the government will rationalise the ledger in a way that earlier 20 heads are now merged into 5 important heads, it added.

There is one cash ledger for tax, interest, penalty, fees and others.

A single refund-disbursing mechanism will come into play wherein the authorities which sanctions refund disburses all four important heads of refunds in particular CGST, SGST, IGST and cess, the ministry said.

Threshold restriction of Rs forty lakh is obtainable of providers of products as in line with the choice of states. Introduction of composition scheme for small service providersupto an annual turnover of Rs 50 lakh with a tax rate of 6 percent, electronic invoicing system in a phase wise mannerfor B2B transactions is proposed to be added and GST Appellate Tribunals are being established at various state headquarters and region benches additionally," it stated.

The goods and service tax (GST) was implemented through a gala ceremony held in the central hall of Parliament at the midnight of June 30, 2017 and came into effect from July 1, 2017.

By eliminating cascading of taxes and lowering transaction costs, it'll enhance ease of doing commercial employer and offer an impetus to 'Make in India' campaign.

The relevant Board of Taxes and Customs' officers who were tasked with the herculean job of implementation of GST might be awarded 'GST Commendation certificates' through Thakur, release stated.

The GST has been one of the boldest steps that the government has taken to streamline the tax system. There are already benefits like more coverage, online systems and even increase in the amount of taxes collected. It needs to be seen how the latest round of improvements are implemented.