1. ‘New GST guidelines have eased compliance burden’

‘New GST guidelines have eased compliance burden’

With the changes made in the rules related to return filing and transition stocks by the GST Council, the process has been significantly untangled

By: | New Delhi | Published: June 6, 2017 6:19 AM
gst, gst news, gst regime, gst india, gst guidelines, gst impact, gst benefits, benefits of gst, gst law, gst board, gst council The new rules will only require the GST identification number of the supplier and recipient, invoice and debit note number and tax amount to be matched, said PwC. (PTI)

With the changes made in the rules related to return filing and transition stocks by the GST Council, the process has been significantly untangled, leading to a smoother transition to the new taxation regime with better compliance, industry sources and other stakeholders said.

“Under the new rules related to filing returns, the businesses will not be required to match claim of input tax credit with the taxable value. The new rules will only require the GST identification number (GSTIN) of the supplier and recipient, invoice and debit note number and tax amount to be matched,” PwC said in a note.

The changes are particularly beneficial to electronic commerce operators. “It seems the government has understood the practical problems which sellers were facing in the states where currently data is shared with VAT departments and is attempting to simplify compliance for sellers,” a spokesperson of the all India online vendor association said.

Additionally, annual return for the electronic commerce operator in the prescribed has been introduced which includes empowerment of the commissioner to extend the date of matching in all cases of discrepancies, on recommendation of council.

“The recent amendments to the rule have definitely simplified the process of return filing for the industry. The changes need to be proactively adopted by the industry to ensure the compliance burden under GST is reduced,” Rakesh Biyani, joint MD, Future Retail said.

Moreover, the rules related to transition stock has also provided the dealers with much needed relief. The deemed input credit for the excise paid, where the person does not have any duty paying document, has been increased to 60% from 40% for goods that will attract levy of 18% and above.

The new transition rule has also introduced 100% input tax credit for goods valued above Rs 25,000 and bearing a serial number as part of inventory management. For goods like motor vehicle, fridges, etc, the manufacturer will issue a credit transfer document, and the dealer will be able to claim full credit of the excise duty paid.

On the changes made in transition stock rules, he added that the new rule would help sellers of branded products as they will be able to sell stock at the old retail price and then once it is liquidated they can procure new stock based on GST rates.

  1. D
    Dr.Damodar Biswal
    Jun 6, 2017 at 3:28 pm
    The traders need massive awareness to enable them to file papers correctly.Many traders r unaware of the procedure n r scared.
    Reply

    Go to Top