GoM’s efforts on Simplification on GST return filing process:

The GoM has invited suggestions from industry and tax experts within a week, which will be incorporated in a report and tabled before the GST Council. A meeting was held between the Group of Ministries and industry representatives and tax experts.

The government had suspended GSTR 2 (buyers’ returns) and GSTR3 (input-output returns) — and had asked a committee headed by GST Network Chairman A B Pandey to suggest simplification of returns. The committee had given different options to the GOM.

Till the time returns are simplified, GSTR1 — sellers’ returns, and GSTR3B — summary input-output returns, will be in place. Earlier, the government had said that these will be there till June, but now it said that it would continue to be there till returns are simplified.

One of the main issues discussed was whether input credit paid on tax can be provided on a provisional basis or linked to tax payments. It was  suggested that several options be kept, including having the seller upload all invoices and giving the buyer credit for the bills he acknowledges. As per this suggestion, no credit will be made available if the buyer claims there are missing invoices, an official involved in the deliberations told BloombergQuint on the condition of anonymity.

Another suggestion was to give provisional credit to buyers in case the seller fails to upload an invoice. If seller disputes that transaction, the credit should be given to the buyer would be reversed. It was then suggested that the best of these two models should be incorporated into a final return filing framework that protects government’s revenue and is also convenient for taxpayers.