A recent report by a panel on Income Tax return forms has recommended separate returns for input and output. With this move, India Inc will now have to file monthly returns with due invoices of business-to-business (B2B) transactions under the proposed goods and services tax (GST) regime. The panel, which has officials from Centre as well as the state governments, has presented its fourth report after the previous ones on registration, refund and payment process.
The report stated that there will be common e-return for central GST, state GST, integrated GST and additional tax. According to the report, vendor management would also be very important and details of inward supplies would be auto populated in the return of the buying entity and any difference with actual books of accounts would have to be reconciled. Besides, the panel has mooted a separate return form for non-resident tax payers.
Tax department has recently given an assurance that the Goods and Service Tax (GST) will be implemented anytime during a year once the bill is passed in Rajya Sabha. GST, once rolled out, will include various levies like excise, service tax, sales tax, octroi, etc, and ensure a single indirect tax regime for the entire country. GST, seen as the most comprehensive reform of indirect taxes since independence, is expected to lift the country's GDP by one to two percentage points.