Kicking off celebrations to mark two years of the Goods and Services Tax 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.
"Sahaj & Sugam returns for small taxpayers are proposed," it said.
Single Cash Ledger
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.
Single Refund-Disbursing Mechanism
A single refund-disbursing mechanism will come into play wherein the government which sanctions refunds, disburses all four major heads of refunds namely CGST, SGST, IGST and cess, the ministry said.
Threshold limit of Rs 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 Rs 50 lakh with a tax rate of 6 percent, 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 alsoFinance Ministry Statement
GST was rolled out at a ceremony held in the central hall of Parliament at the midnight of June 30, 2017 and came into effect from July 1, 2017.
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