oppn parties Making GST Good and Simple

News Snippets

  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
  • India has moved to the 40th spot in the innovation index, up 6 spots from last year
  • DGGI has alleged that top insurance companies, banks and NBFCs has committed a fraud of Rs 800cr by claiming input tax credit without underlying supplies
  • The Centre will borrow Rs 10000cr less than planned earlier due to good revenue collections
  • At $23.9bn, India's current account deficit widened to 2.8% in Q1, the worst in four years
  • Stocks continue to flounder on Thursday: Sensex sheds 188 points to 56409 and Nifty 40 points to 16818
  • The 36th National Games were declared open on Thusrday by PM Modi in front of a record crowd in Motera near Ahmedabad
  • Jasprit Bumrah most likely to miss T20 World Cup due to recurrence of back injury
  • PFI's political wing, the SDPI is on EC radar and action will follow soon if discrepancies are detected
  • Ashok Gehlot to meet Sonia Gandhi today, says all issues will be sorted out soon
  • Referring to the PFI ban, most Muslim organizations ask the government to take similar action against right wings organizations like the RSS, Bajrang Dal, VHP and the like
In a landmark order, Supreme Court rules that all women, married or unmarried, are entitled to safe and legal abortion up to 24 weeks of pregnancy as per the MTP Act
oppn parties
Making GST Good and Simple

By Ashwini Agarwal
First publised on 2018-01-19 18:37:44

The GST Council, in its meeting on January 18 at New Delhi, has decided to make e-waybill mandatory even for inter-state movement of goods of value over Rs 50000. It has decided to review the composition scheme as it feels the scheme is being misused. The Council revised the rates on 29 items and 53 services. It also decided to simplify compliance by moving towards a one-stage return filing very soon.

The first measure outlined above is driven by the Council’s perception that there is widespread evasion and underreporting by traders. Once the inter-state e-waybill system is in place, the government would come to know whether the goods for which the e-waybill number was generated are reflected in sales and purchase invoices and shown in returns. That way, evasion will become almost impossible.

The second measure of reviewing the composition scheme is necessitated by paltry collections from traders who have opted under this scheme. This scheme allows traders who have sales under Rs 20 lakhs to just pay 1% as GST, without of course input benefits on their purchases. But only Rs 307cr have been collected from more than 17 lakh traders registered under the scheme. This amounts to an absurd figure of just Rs 1806 per trader. Hence, the government’s suspicions, that the scheme is being misused, are well founded.

The Council also received a detailed presentation from a group, comprising of Bihar deputy CM Sushil Modi and Nandan Nilekani, among others, on simplifying processes to make return filing user friendly on the one hand and anti-evasion on the other. Carrying this forward, the Council has agreed in principle to do away with GSTR1, GSTR2 and GSTR3 forms and replace them with a single form, the GSTR3B, along with the uploading of supply invoices. That will ease compliance in a major way.

The GST regime is a vital cog in taking the economy forward by doing away with multiple and confusing taxes. It is also necessary to plug the loopholes that were available to unscrupulous traders to beat the system and avoid paying taxes. Hence, it is imperative that the GST itself is made super simple. Just naming it “good and simple” tax will not do and the government and the Council have realized that. That is why all efforts are being made to simplify the regime and make it less taxing for traders and industry. It is now upon the taxpayers to come forward and report each and every transaction and pay the tax due on them.