India - GST Simplification Plans

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In the latest meeting of India’s Goods and Services Tax (GST) Council on May 4th plans were approved to simplify GST filing obligations.

The key updates of the meeting were that most taxpayers will be required to file a return monthly. Return filing dates will be staggered based on the turnover of the registered person and composition dealers and dealers that have not made taxable transactions may be able to file returns quarterly.

A number of agendas were agreed but in terms of the VAT return filing process there will be three phases.  The standout features of each phase are as follows:

Phase 1 (first six months) - Current process of filing GSTR-3B and GSTR-1 will continue and software for the new system to be under development

Phase 2 (following six months) - Monthly system of filing returns to be introduced for all taxpayers except persons with nil liability and composition dealers who will be able to file quarterly returns

Phase 3 (after one year) - The new system of return filing to be fully implemented with no facility of provisional credit. Credit only to be available on the basis of details of invoices uploaded by the supplier

We will keep you posted on how the planned implementation progresses.

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