To tackle evasion, officials propose checks in GST return filing system


Close to Rs 34,000 crore worth of tax liabilities may have been under-reported in GST returns filed between July and December.

He said the Group of Ministers on simplification of return filing and I-T experts would explore the models discussed in the meeting and recommend it to the council.

The Council could not decide on a simplified GST return form and hence entrusted the ministerial panel under Sushil Modi to chalk out a single page form which is simpler and evasion proof.

Finance Minister Arun Jaitley said the council discussed two alternative ways of return filing processes but no conclusive decision was taken.

The first group of states to roll out intra-state e-way bill from April 15 will be decided on April 7. Tax consultants, however, said that there could be valid reasons for the variation since at the time of payment of taxes, input tax credit accumulated over months is used, along with the current periods. "Each group will come under it every week after April 1 and efforts will be made to implement it across the country by April end", Jaitley said. "The existing system has been extended by three months", Jaitley told reporters after the meeting.

E-way bill is generated where the value of the consignment transported exceeds Rs 50,000. All the states will have the system in place by June 1. The Council, however, did not reach a consensus on the proposed simplification of returns filing process as the tax bureaucracy emphasised on removing any scope for evasion while moving towards an easier returns filing process.

E-way Bill will be implemented from April 1 for inter-state movement of goods, said Finance Minister Arun Jaitley today. Both e-way bill and RCM are anti-evasion measures under GST but traders have been protesting against these since inception.

In its meeting held on October previous year the Council had noted that exporters are experiencing difficulties of cash blockage on account of having to upfront pay GST / IGST on the inputs, raw materials etc. / finished goods imported / procured for purposes of exports.

Also, domestic procurement made under Advance Authorisation, EPCG and EOU schemes are being recognised as "deemed exports" with flexibility for either the suppliers or the exporters being able to claim a refund of GST/IGST paid thereon.

Further, a GST Implementation Committee (GIC) has been tasked with the work of redressing the grievances caused to the taxpayers arising out of IT glitches.

However, M.S Mani, senior director, Deloitte India, felt the introduction of e-way bills for intra-state transactions on a staggered basis would make compliance more complex for pan-India businesses.