GST returns filing: Sushil Modi panel unveils new fusion model

The Group of Ministers (GoM) headed by Bihar Deputy Chief Minister Sushil Modi on Tuesday worked out a new ‘fusion’ model for the tax filing by the companies, as it looks to simplify the return filing process under the Goods and Services Tax (GST). The ministerial panel was also unanimous that there should be only one return per month.

The panel met the industry representatives, tax experts and the state tax officials on simplifying the return process. Nandan Nilekani, non-executive chairman of Infosys, was also present in the deliberations. GST Network (GSTN), the IT backbone of GST, has been implemented by software firm Infosys.

As per the fusion model, the Input Tax Credit (ITC) could be given on a provisional basis once the supplier uploads the sales invoice, sources said.

Another model presented before the panel earlier suggested that the provisional credit should not be granted until the taxpayer pays taxes and files returns. The second model allows for granting provisional credit, even as taxes can be paid later.

The credit is reversed if the tax returns are not filed within the stipulated time.

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Both the models were discussed during the GST Council meeting headed by Finance Minister Arun Jaitley last month. Meanwhile, in the GoM meeting, “fusion of both the models was deliberated for return simplification and will be presented to the GST Council for approval.

Source: DNA Money