New Delhi: Finance Minister Nirmala Sitharaman on Friday said that in order to simplify filing of returns of Goods and Services Tax (GST), businesses with less than Rs 5 crore annual turnover will need to file quarterly GST return.
“Tax payers having annual turnover of less than Rs. 5 Crore shall file quarterly return. Free accounting software for Return preparation has been made available to small businesses. A fully automated GST refund module shall be implemented. Multiple tax ledgers for a tax payer shall be replaced by one”, Sitharaman, presenting the Union Budget 2019 in Parliament said.
The threshold exemption limit for a supplier of goods is proposed to be enhanced from Rs 20 lakhs to an amount exceeding Rs 40 lakh.
Sitharaman also proposed to move to an electronic invoice system wherein invoice details will be captured in a central system at the time of issuance.
“This will eventually be used to prefill the taxpayers’ returns. There will be no need for a separate e-way bill. To be rolled out from January 2020, the electronic invoice system will significantly reduce the compliance burden”, she said.
The Finance Minister said that the landscape of Indirect Tax has changed significantly with the implementation of GST.
Terming it as a monumental reform, the Finance Minister said the GST regime has brought together the Centre and the States with the result 17 taxes and 13 cesses became one and multitude of rates instantly became four.
“Almost all commodities saw rate reduction. Tens of returns were replaced by one. Taxpayers’ interface with tax departments got reduced. Border checks got eliminated. Goods started moving freely across states, which saved time and energy. The dream of ‘One Nation, One Tax, One Market’ was realized,” she said.
Complimenting the GST Council, the Finance Minister said the Council, Centre and States proactively worked to resolve the teething problems witnessed during the initial phase of GST.
Sitharaman said that GST rates have been reduced significantly where relief of about Rs 92,000 crores per year has been given.