Page 9 - Banking Finance June 2019

GST UPDATE

GST

B2B invoices have to be Fin min simplifies composition scheme GST filing
Making ease for composition scheme taxpayers under the GST, the finance min-
generated on govt portal
istry has allowed such businesses to file 'self-assessed
by Sept tax' return on quarterly basis in a simplified form.
All invoices for business-to-business Prior to that, businesses opting for composition
sales by enti- scheme needed to file tax returns every quarter in
ties beyond a GSTR- 4 which ran into seven pages approximately.
specified turn- According to CBIC notification, composition scheme
over threshold taxpayers will now file GSTR-4 annually by April 30
will have to for the previous financial year ending March 31. The CBIC has notified the sim-
be generated plified 'statement for payment of self-assessed tax' in Form GST CMP08 to be
on a centralised government portal filed by taxpayers who have opted for composition scheme, under which busi-
by September, a move aimed to con- nesses have to pay lower rate of tax on their turnover.
trol the issue of false invoices and
The CMP08, which has to be filed by the 18th day of the subsequent month
evasion of GST, officials said.
following the end of a quarter, will include details like outward supplies, inward
The official added that the revenue supplies attracting reverse charge including import of services; tax, interest
secretary is responsible to monitor payable; and taxes and interest paid. Composition scheme businesses will file
the progress of implementation of the April-June quarter returns in July as per the new format.
electronic or e-invoice project for
Small traders and manufacturers with a turnover of Rs 1.5 crore pay a 1 per
which an officers' committee has al-
cent GST, while service providers and suppliers of both goods and services up to
ready been set up, they added.
a turnover of Rs 50 lakh pays 6 per cent. Businesses that have not opted for
"E-invoice for B2B transactions will composition scheme have to file GST returns every month and also pay taxes as
be rolled out in next three-four per the GST slabs decided for the goods and services they deal in. Currently there
months in a phased manner. The is a 4-tier GST- 5, 12, 18 and 28 per cent.
entire invoice would have to be gen-
There are 1.21 crore businesses registered under Goods and Services Tax (GST),
erated on a government portal,"
of which 20 lakh are under composition scheme. AMRG & Associates Partner
another official remarked.
Rajat Mohan said composition taxpayers have been relieved from the burden
The measure will assist in lowering GST of filing a detailed and cumbersome quarterly return which would now be filed
evasion through issue of false invoices. only on an annual basis.
In addition, it would make the returns
He added, "For the purposes of tax payment composition taxpayer would now
filing process easier for businesses since
be filing a simplified quarterly statement for payment of self-assessment tax.
invoice data would already be captured
This initiative of government would act as an incentive for small and upcoming
by a centralised portal.
businesses to accept composition scheme without any fear of compliance."
BANKING FINANCE | JUNE | 2019 | 9