Date for returns filing extended beyond 2019 Lok Sabha elections

Apart from rate cuts on 23 items, the 31st meeting of the GST Council on Saturday decided to simplify the current returns filing process. 

The new return filing system would be rolled out on a trial basis on April 1, 2019, while it would be made mandatory from July 1, 2019, -on the second anniversary of GST. 

The annual returns filing date, which was extended from December 31 to March 31, 2019, has been further extended to June 30, 2019 but with a penalty, if filed after April 1. The 2019 Lok Sabha elections are scheduled to end by May 2019. 

Revenue secretary Ajay Bhushan Pandey said several decisions to simplify processes for the taxpayer have been taken in the GST Council meeting. 

“Instead of keeping 20 different cash ledgers — for tax paid, late fee, interest, penalty under each tax head (for example Central GST, State GST, Integrated GST and Compensation Cess) — the taxpayer now needs to maintain only one ledger for each tax head, reducing the requirement to four cash ledgers," he said while addressing the media after the meeting. 

On refunds, a simplified system would be implemented on pilot basis. Under this, the GST system will pay out refunds after the state or Centre issue a sanction order. The settlement between the Centre (CGST) and states (SGST) in case of any mismatch between actual refund liability and the payout would be done at a later stage, officials said on the sidelines of the meeting. 

"After the review on pilot basis, the subject will be taken up in the subsequent GST Council meeting for full implementation," Pandey said.