As the indirect tax regime of Goods and Services Tax (GST) completes two years on July 1, the government has outlined measures such as the introduction of the new returns system, single refund window, electronic invoice system, composition scheme for services and single cash ledger in the current fiscal.
The Finance Ministry will mark the completion of two years of GST, with Minister of State for Finance and Corporate Affairs Anurag Thakur presiding over the event alongside key secretaries and officials of various departments, the finance ministry said in a release on Sunday.
The new returns system will be introduced on a trial basis from July 1 and on a mandatory basis from October 1.
Sahaj and Sugam returns for small taxpayers are proposed, the release said.
With regards to single cash ledger, the government will rationalize the ledger in such a manner that the previous 20 heads are merged into five major heads, it added. There is only one cash ledger for tax, interest, penalty, fee, and others.
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A single refund-disbursing mechanism will come into play wherein the government which sanctions refund disburses all four major heads of refunds namely central GST, state GST, integrated GST and cess, the ministry said.
Threshold limit of Rs 40 lakh is offered of suppliers of goods as per the choice of states. Introduction of composition scheme for small service providers up to an annual turnover of Rs 50 lakh with a tax rate of 6 percent, electronic invoicing system in a phase-wise manner for B2B (business-to-business) transactions is proposed to be introduced and GST Appellate Tribunals are being established at various state headquarters and area benches also, it further said.
GST subsumed more than a dozen central and state levies like excise duty, service tax, and VAT when it was implemented on July 1, 2017.
However, its implementation on five petroleum products – petrol, diesel, natural gas, crude oil, and aviation turbine fuel (ATF) was deferred.
The government said GST has integrated India into a single common market by breaking barriers to inter-state trade and commerce.
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By eliminating cascading of taxes and reducing transaction costs, it will enhance ease of doing business and provide an impetus to Make in India campaign, it added.
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.
A book on GST for MSME will also be released during Monday s event. Officers of the Central Board of Indirect Taxes and Customs (CBIC) will be awarded GST Commendation Certificates by Thakur, the release said.