27th GST Council Meeting

The 27th GST Council Meeting is set to be held on May 4th, 2018 over video conferencing. In the 27th GST Council Meeting, the major agendas to be taken up by the Government and GSTIN are:

• Simplification of the GST return filing forms
• Change of ownership of the GST Network
• Imposition of cess on sugar to clear the dues of farmers.

Check out the major decision taken in the 26th GST Council Meeting.

Simplification of GST Return Filing

One of the major agendas to be taken up in the 27th GST Council is the simplification of GST Return Filing. Initially, a taxpayer was required to file GSTR1 return, GSTR2 return and GSTR3 return. However, as there was trouble with filing forms GSTR1, GSTR 2 and GSTR3, the Government introduced a simplified return called GSTR3B upto December 31, 2017. GSRT 3B return filing was further extended upto June 2018. GSTR 2 and GSTR 3 returns were not required to be filed until further notification from the Government.

Now, in the 27th GST Council Meeting, the Government will try to streamline the GST return filing and decide the fate of GSTR 2 and GSTR 3 returns. GSTR 2 and GSTR 3 returns are key in invoice matching and input tax credit disbursement. However, introducing more returns will make compliance burdensome for many entities. Hence, the Government is keen on approving the new system for tax payment, credit disbursement and compliance monitoring (via a semi-automatic invoices-matching).

Hence, under a new model to be taken up in the 27th GST Council meeting, a new model would be considered wherein the taxpayers would not have to file additional returns. The system will automatically generate reports based on monthly returns file by a taxpayer based on supply data uploaded and inward supplies accepted. Based on this data, the system would generate a list of suppliers defaulting on tax payment and GST officials will use this for curbing tax evasion.

Changes to GSTN Ownership

Currently GSTN is owned by the Government (Central and State) along with five private financial institutions — HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment and LIC Housing Finance. GSTN is incorporated as a Section 8 Company.

Since, the data handled by GSTN is very sensitive, there has been representations made to change the ownership of the GSTN. This will be taken up in the 27th GST Council Meeting as well.

CESS on Sugar

The 27th GST Council Meeting will also take up the issue of levying GST Cess on sugar. The proposed Cess levied on sugar will be used by the Government to finance the gap between the cane price mills pay to farmers in accordance with a revenue-sharing formula recommended by the Rangarajan Committee and the benchmark rate – fair and remunerative price (FRP) — fixed by the Central Government. The proposed Cess could be in the range of Rs.1 to R.1.50 per kg of sugar.

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