By TIOL News Service

NEW DELHI, MAY 04, 2018: THE GST Council at its latest meeting through video conferencing today took several critical decisions pending for long. It has approved the simplified format of GST Return - known as the Fusion Model. The new return will take minimum six months to go online. And it would require the businesses to upload Sales invoices and also claim PROVISIONAL credit which is to be reconciled over a period of six months. And do so, the buyers would be talking to sellers to upload their missing invoices and once the same is done, it would get reconciled with the provisional credit taken. And such a process would be required to be completed over a period of six months for making it final reconciliation for the credit purpose. In other words, the GST taxpayers are heading for another round of transition phase which would take another one year to settle down.

Meanwhile, the Council has decided to extend the validity of GSTR-3B for another six months. In other words, the CODING of new format would take six months and if it takes more time, the GSTR-3B would continue to be in existence till such time the new GSTR is designed and tested.

The GST Counci also took a decision to take over the GSTN by acquiring 100% equity. And once it is done, the equity would be divided between the Centre and the States as per the ratio of revenue collections. However, the GSTN would be allowed to hire talents from the market for carrying on its necessary operations at attractive terms and conditions.

The Council also decided to set up a Committee of five State Finance Ministers who would discuss and suggest possible measures to raise funds in circumstances of contingencies. Such a decision was taken in the background of the propsal to levy CESS on sugar in order to compensate cane farmers in distress. Though the decision on imposition of sugar cess stands deferred but a mechanism is going to be worked out to raise additional funds to meet any sort of contigencies. And one of the debated measures was to hike the present tax rate to achieve the purpose.

Another Group of Ministers is going to be set up to crystallise divergent views on the proposal to incentivise Digital Payments. Certain States did not favour it. But the majority voted in its favour. A few States proposed tailoring of negative list of transactions which would not be entitled to any incentive. However, the initial proposal was to give an incentive of Rs 100 per voucher if 100% amount is paid in a transaction through any digital mode.

The Council also expressed its happiness over the improvement in revenue collections and hoped that it would grow further.