From Rs 2 cr to Rs 10 cr – CBIC think-tank for raising revenue limit for GST returns

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New Delhi | Published: September 22, 2018 2:29:30 AM

DGGST has raised reservations about some provisions in the new return filing system.

CBIC think-tank for raising revenue limit for GST returns

A think-tank within the Central Board of Indirect Taxes and Customs (CBIC) has recommended that the revenue threshold for annual GST return be raised to Rs 10 crore from Rs 2 crore currently to avoid burdening smaller taxpayers.

The tax department recently issued the format for GSTR-9C, which is required to be furnished by taxpayers with revenue of above Rs 2 crore. These assessees are also required to get their books audited by a chartered accountant.

“Filing of annual returns will involve compiling of lots of information/data and for small taxpayers it will be a huge burden. Accordingly, it is proposed that the threshold limit for filing annual return-9C may be increased to `10 crore,” the Directorate General of GST (DGGST) wrote to the GST policy wing last week. The DGGST assists the policy wing of GST as a think-tank.

Additionally, the department suggested that offline utility for annual forms be provided to taxpayers quickly for them to practise in real-time basis. “A check should be incorporated in the GSTR-9 and GST-9A formats, which wouldn’t allow taxpayers to file the annual return unless they have filed all GSTR-1 and GSTR-3B returns for the financial year for which annual return is being filed,” the letter seen by FE said.

In another letter dispatched earlier this month, the DGGST had raised reservations about some of the provisions in the new return filing system, which is being readied by the GST Network.

It flagged the provision of allowing a supplier to amend invoices before it is locked by the recipient as being prone to misuse.

“No change should be permitted in the quantity of goods; it will provide a legal channel to unscrupulous suppliers to supply goods clandestinely/without payment of tax,” the DGGST said.

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