GST: India Inc may have to file monthly returns for B2B deals

A recent report by a panel on Income Tax return forms has recommended separate returns for input and output. Owing to this move, India Inc will now have to file monthly returns with due invoices of its B2B transactions under the proposed GST regime.

Not just this, but Uber, which plans to set-up its workplace in India, will be able to file returns from outside the country as the panel has mooted a separate return form for the non-resident tax payers. This information was revealed in an Economic Times report.

The report says that “there will be common e-return for central GST, state GST, integrated GST and additional tax.”

The panel, which has officials from Centre as well as the state governments has presented its fourth report after the previous ones on registration, refund and payment process.

Pratik Jain, partner, KPMG in India, told ET, "Filing of monthly returns and providing invoice level details for B2B supplies would mean that compliances for industry (particularly the service sector) would increase substantially. This would require handling voluminous data and strong IT systems for large organisations."

Experts, however, believe that business processes needs to be aligned with the law.

"The processes envisaged in the GST return report need to be integrated with the actual law and Place of Supply Rules. The proposed return process appears quite involved which will drive up compliance costs," reveals Bipin Sapra, partner at EY.

As per an Economic Times report, GST, which is seen as the most comprehensive reform of indirect taxes since independence, is expected to lift the country's GDP by one to two percentage points.

"Given the quantum of changes entailed in compliance with these requirements, the businesses would need to assess the impact on their current IT systems and make a robust plan for transition. Timely release of these reports therefore should help the industry and is a welcome step," KPMG's Jain tells the business daily.
Image: indatimes