New Delhi: Kicking off celebration to mark two years of the GST implementation, the finance ministry will on Monday come up with further reforms in the indirect tax system with introduction of new return system, rationalisation of cash ledger system and a single refund-disbursing mechanism, among others.
Minister of State for Finance and Corporate Affairs Anurag Thakur will preside over the event alongside key secretaries and officials of various departments, the finance ministry said in a release on Sunday.
The introduction of GST was a game changer for the Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regime, it said.
The ministry said it will introduce the new return system on a trial basis from 1 July and on mandatory basis from 1 October.
"Sahaj & Sugam returns for small taxpayers are proposed," it said.
With regards to single cash ledger, the government will rationalise the ledger in such a manner that earlier 20 heads are merged into 5 major heads, it added.
There is only one cash ledger for tax, interest, penalty, fee and others.
A single refund-disbursing mechanism will come into play wherein the government which sanctions refund disburses all four major heads of refunds namely CGST, SGST, IGST and cess, the ministry said.
"Threshold limit of ₹40 lakh is offered of suppliers of goods as per the choice of states. Introduction of composition scheme for small service providers up to an annual turnover of ₹50 lakh with a tax rate of 6%, electronic invoicing system in a phase-wise manner for B2B transactions is proposed to be introduced and GST Appellate Tribunals are being established at various state headquarters and area benches also," it said.
The goods and services tax (GST) was implemented through a gala ceremony held in the central hall of Parliament at the midnight of 30 June 2017 and came into effect from 1 July 2017.
The government said GST has integrated India into a single common market by breaking barriers to inter-state trade and commerce.
By eliminating cascading of taxes and reducing transaction costs, it will enhance ease of doing business and provide an impetus to 'Make in India' campaign.
During the course of the past two years, the government brought in various changes in the GST system both with regard to quantum of taxes and inclusion and exclusion of items (goods and services).
At the event, a book on 'GST for MSME' will also be released.
The Central Board of Indirect Taxes and Customs' officers who have put in hard work in the implementation of GST will be awarded 'GST Commendation Certificates' by Thakur, release said.