New return design for GST return approved
GST council has approved the new return design for GST based on the recommendations of the group of ministers on IT simplification. As per the new return design, returns shall be filed monthly with certain exceptions being given for composition dealers and also the facility to file a quarterly return has been provided to the dealers having nil transactions.
In the new return mechanism concept of invoice matching has also been excluded and now there is no need to upload purchase invoice. There will be a unidirectional flow of invoices from the seller which shall be visible to the buyer and shall be a valid document for availing the input credit. HSN at four digit level has been mandated for B2B transactions to maintain the uniformity in the reporting system.
Outward tax liability shall be calculated automatically by the system based on invoices uploaded by the seller and also on the basis of same invoices, input tax credit will be made available to buyers.
Automatic reversal of credit on non-payment shall not be there. Supplier side control has been introduced wherein if any supplier has defaulted in payment of outward tax then he shall not be allowed to upload the invoices to pass input tax credit. This was necessary so that input tax credit facility is not misused.
Transition to this new system has been proposed in three stages.
The relevant press release can be read as follows: