As the 27th meeting of the Goods and Services Tax (GST) Council to be held on Friday, the Government is expected to take decision on return simplification model, which is the prime agenda for the council.
Sources privy to development also told The Pioneer that the Sushil Modi-led Group of Ministers (GoM) is also likely to put the three models of new return form for discussion before the council. “Besides, the GSTN proposal to make it into a Government company may also come up for consideration in the meeting. The stake-holding pattern may be discussed in the meeting,” sources added.
The meeting comes at a time when GST mop-up achieved a record high by exceeding Rs 1 lakh crore milestone in April. The Finance Minister Arun Jaitley-headed Council, comprising state finance ministers, will meet through video conferencing. “As Jaitley has been advised by doctors to stay in isolation to avoid contracting infection, the meeting would be conducted through video conferencing,” said the sources.
Apart from simplification of return filing form, the council is likely to consider converting GSTN into a Government-owned company with equal holding of states and the Centre. As of now, five private financial institutions — HDFC ltd, HDFC Bank ltd, ICICI Bank ltd, NSE Strategic Investment Co and lIC Housing Finance ltd — hold 51 per cent stake in GSTN, which was incorporated on March 28, 2013, in the erstwhile UPA regime. The remaining 49 per cent stake is with the Centre and states.
Jaitley had earlier this month asked Finance Secretary Hasmukh Adhia to ‘examine the possibility’ of converting GSTN into a majority Government company or a 100 per cent government company. GSTN provides the IT backbone for the new indirect tax regime.
The council, sources added, will deliberate on the new simplified form to be common for both small and large taxpayers and providing some relief for NIl return filers by allowing them to file return quarterly. One of the models of new return form stipulates that provisional credit should not be granted unless the taxpayers file returns and pay taxes.
The second model provides that provisional credit could be granted to a taxpayer, but returns have to be filed within 3-4 months and taxes have to be paid or else the credit amount would be reversed.
After consulting the stakeholders, the GoM earlier this month worked out a third model for return filing as per which credit could be extended once the invoice uploaded by the supplier is verified by the purchaser on the GSTN portal.
It is learnt that the Government may incentivise digital transactions by providing cash-backs to businesses and price benefits to consumers. As per the proposal being worked out by the Revenue Department, consumers paying through digital mode would be offered a discount over the maximum retail price (MRP). The discount would be capped at Rs 100. Businesses, on the other hand, could get a cash-back based on the quantum of turnover through the digital mode.