Michaela Merz

India – GST Council temporarily extends the present system of filing of returns and export benefits for procurement of goods and recommends implementation of e-way bill scheme in a phased manner from 01 April 2018

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Introduction
In its 26th meeting held on 10 March 2018, the GST Council has decided to extend the present system of compliance for taxpayers for another 3 months up to June 2018, and the export benefits for procurement of goods for another 6 months up to 01 October 2018. The e-way bill scheme would be implemented in a phased manner from 01 April 2018. Some of the key recommendations of the GST Council are highlighted below:

GST compliance

The GST Council decided to continue the present system of compliance up to 30 June 2018.

Filing of GST Returns

Assesses to file GSTR-3B and GSTR 1 up to the month of June 2018, till the new system of filing Returns is finalised. A Group of Ministers would discuss and finalise the new system.

Liability under RCM

The liability to pay GST under RCM has been deferred till 30 June 2018. A Group of Ministers would look into the modalities of implementation.

Implementation of the TDS/ TCS scheme

  • The provisions relating to deduction of tax at source (TDS) as well as collection of tax at source (TCS) have been suspended till 30 June 2018.
  • The modalities for linking State and Central Governments’ accounting system with GSTN are still being worked out for implementation to make available seamless credit to registered traders whose are subject to TDS/ TCS.

Export Benefits

Exemptions for procurement of goods for export

The GST Council has decided to continue the present exemptions up to 01 October 2018. This includes:

  •  Exemptions on imported goods for exports (i.e. Advance Authorisation, EPCG and EOU schemes).
  • Deemed export benefit for domestic procurements made under Advance Authorisation, EPCG and EOU schemes.
  • Procurement of goods by merchant exporters on payment of GST @ 0.1%.

e-Wallet scheme

  • The e-Wallet scheme provides for use of virtual/ notional currency by exporters for payment of GST on domestic procurement of goods and imports.
  • The scheme is being finalised and has been deferred up to 01 October 2018.

Export refunds
The GST Council reviewed the progress in grant of export refunds of both IGST paid on exports and input tax credit and directed speedy disposal of pending claims for immediate sanction and disbursal.

E-way Bill Scheme
The GST Council has recommended implementation of the e-way bill scheme in the following manner:

  • Inter-State Movement of goods: With effect from 01 April 2018.
  • Intra-State Movement of goods: Phased manner with effect from a date to be announced, but not later than 01 June 2018.

Grievance Redressal Mechanism
The responsibility for redressal of grievances of the taxpayers arising out of IT glitches will be handled by the GST Implementation Committee.

The takeaways

While the temporary extension of the present return filing system till finalisation of a new system and the export benefits is welcomed, the delay in finalising the new system is creating a lot of anxiety and uncertainty amongst the assesses. The IT glitches in the returns filing process or the e-way bill scheme is still a matter of significant concern for the trade and industry. The phased implementation of e-way bill scheme is also likely to complicate the system for multi-locational units having presence in different States, as it involves re-alignment of their IT systems in time with the introduction of scheme in different States.

While the implementation of various schemes are being deferred and the Government is taking a lot of initiatives and efforts to address most issues, trade and industry is concerned about the readiness of the IT infrastructure to handle the complexities in GST.

 

Bildquelle: Dieter Schütz  / pixelio.de

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