What Are The Measures Taken To Simplify The GST Return Filing Process?

Simplifying GST Return Filing in India

Introduction of New Return Filing System:

1. New Return Filing System (Sahaj, Sugam, and Normal):

The government introduced a new simplified return filing system comprising Sahaj, Sugam, and Normal returns to cater to the varying needs of taxpayers based on their turnover and complexity of transactions.

2. Sahaj and Sugam Returns for Small Taxpayers:

Sahaj and Sugam returns are simplified forms designed for small taxpayers with less complex transactions. Sahaj is for B2C (business-to-consumer) transactions, while Sugam is for B2B (business-to-business) and B2C transactions.

3. Normal Return for Regular Taxpayers:

The Normal return is for regular taxpayers with more complex transactions. It allows for reporting of input tax credit (ITC) and outward supplies in detail.

Quarterly Filing for Small Taxpayers:

1. Quarterly Return Filing for Small Taxpayers:

Small taxpayers with an annual turnover of up to ?5 crore have the option to file their returns quarterly instead of monthly. This reduces the frequency of compliance for small businesses and eases the compliance burden.

Auto-Population of Data and Matching Mechanism:

1. Auto-Population of GSTR-2B:

The government introduced GSTR-2B, an auto-drafted return that provides taxpayers with the details of their input tax credit (ITC) as available from their suppliers' GSTR-1 filings. This simplifies the reconciliation process for taxpayers.

2. Real-Time Invoice Matching:

The GSTN (Goods and Services Tax Network) system facilitates real-time invoice matching to detect mismatches between the supplier's and recipient's invoices. This helps in identifying discrepancies and ensuring accurate reporting of transactions.

Simplification of Other Processes:

1. Offline Tools and APIs:

The GSTN provides offline tools and application programming interfaces (APIs) to assist taxpayers in preparing and filing their returns offline. This accommodates taxpayers who may not have access to reliable internet connectivity.

2. Digital Signatures and EVCs:

Taxpayers can digitally sign their returns using digital signatures or authenticate them using electronic verification codes (EVCs), eliminating the need for physical signatures and paperwork.

3. Communication and Guidance:

The GST authorities regularly communicate with taxpayers through emails, SMS, and notifications on the GST portal to provide guidance and updates on the return filing process and compliance requirements.

Continuous Improvement and Feedback Mechanism:

1. Feedback Mechanism:

The GST authorities gather feedback from taxpayers through surveys, workshops, and consultations to identify areas for improvement in the return filing process and address any challenges faced by taxpayers.

2. Continuous Upgradation of Systems:

The GSTN continuously upgrades its systems and infrastructure to enhance the user experience, improve data security, and ensure the smooth functioning of the return filing process.