A simplified return format for GST is being introduced from April 2020, Finance Minister Nirmala Sitharaman said on Saturday.
In her second Budget presentation, the finance minister said GST has resulted in gains of Rs 1 lakh crore to consumers and removed inspector raj and also helped the transport sector. Goods and Services Tax (GST) rate cuts have led to an annual benefit of ₹1 trillion to consumers, enabling households to save as much as 4% of their monthly spending.
Central and state governments collected about ₹1.11 trillion in Goods and Services Tax (GST) in January, the second highest monthly collection since the GST roll out, an official statement from the finance ministry said earlier in the morning. This is also the third straight month of GST receipts crossing the ₹1 trillion mark.
What’s Going To Change?
In order to crack down on fake invoicing and fraudulent input tax credit (ITC) refunds under the goods and services tax (GST), the Budget has introduced strict penal provisions under the GST legislation, making it a non-bailable offence. The move has already been approved by the GST Council.
Besides, Finance Minister Nirmala Sitharaman announced that the new GST return framework and e-invoicing would be implemented from April 1, to improve compliance and plug the tax revenue leakages.
According to the government, the masterminds of fraudulent ITC rackets involve people like daily wagers, rickshaw pullers etc.
“With an eye on the future of Indirect tax regime in India, this year’s Budget has aimed at simplification of tax compliances. New GST return framework and E-invoicing would be implemented from April 1, 2020, primarily in an attempt to plug the tax revenue leakage on account of fake invoicing and fraudulent claims of input tax credit,” said Anita Rastogi – Partner, Indirect Tax & GST, PwC India.