Since launching GST in 2017, there have been several amendments to make the process simpler. The new process had some hurdles initially. As time passed, things started to become clearer. With the GST council, the government is taking measures to overcome these issues.

The recent amendments regarding the GST filing have several modifications. Experts believe that these will help the small and medium businesses significantly. This help them with an efficient filing system and will ensure that they do not lose businesses.

What are the amendments?

There are several changes from which small players can benefit. These changes are:

Increase in small taxpayer cap

The new regulation will consider players with up to 5 crores turnover as small taxpayers. Earlier it was 1.5 crores.

Single form

Earlier tax filing process included multiple forms. Now, it is just one GST RET-1 with two annexures GST ANX-1 and GST ANX-2 for all categories of taxpayers.

Continuous upload

The system to upload revenues at the time of filing is scrapped. Now, the players can use a mechanism that will help them in uploading revenue invoices on a real-time basis.

Input tax credit

It will no longer require self-declaration. The system will calculate it by taking a cue from the supplier’s revenue invoices.

Missing invoices

Anyone, who missed filing an invoice or amendment, can now do it by filing an Amendment Return form. Earlier, people had to file it with the return of the following tax period.

Suspension of payment

Earlier, till the completion of the suspension process, people had to pay tax. Now, it will be till the moment they fill-up the form of cancellation.

How are small businesses going to benefit?

The review meetings try to simplify the process for the commoners. This is to maintain clarity and help people under its purview who benefit from it.

• This simpler process will encourage them to file without much delay.
• Instead of multiple forms, one form will help them by saving time and complications.
• Regular invoice updates from supplier’s end on a real-time basis can simplify the procedure.
• The reviewed process has extended the threshold limit. This will take out almost 10 lakh traders from the GST compliance burden.
• Players have to file tax every month. But small taxpayers will benefit from the new regulation. They can do it quarterly.
• The new form has three different categories; Normal, Sahaj, and Sugam. Small businesses can fill up any one of the forms to file their taxes.

Conclusion:

The Indian government has noted it earlier that a substantial amount of tax comes from small businesses. Many of them are not adept at handling digital proceedings. Bringing them under the digital tax filing system is a huge challenge.

This will also simplify dealings between small and big businesses. It is a welcome relief for many as it has untied the complex knots and simplified business dealings with medium and large companies.