GST to become taxpayer-friendly as government plans 46 amendments to law

The government had earlier claimed that the fresh draft would bring in more entities with an aim to help the citizens.

New Delhi: In a bid to simplify the current Goods and Services Tax (GST) regime, apanel comprising government officials have floated a draft amendment, proposing certain compliance-related changes to the inderct taxation system.

The changes have been recommended in at least 46 categories of the integrated tax system.

As per reports, the draft changes, if amended, would enable the employers in companies to leverage the fresh changes to claim input tax credit on a slew of facilities like food, transport, insurance that is provided to employees.

The government had earlier claimed that the fresh draft would bring in more entities with an aim to help the citizens.

It may be noted that there are several amendments that have been planned to streamline the regime – omission of liability to pay tax on reverse charge has been touted to be one of the biggest changes; the new return filing procedures are expected to make compliance easier and would allow more service providers to opt for the composition scheme.

The draft notification is open for stakeholder and public comments till July 15.

The draft amendments will be placed before the GST council, during their meet on July 21, after it gets a final nod from the revenue department.

Following discussions at council meet, the recommendations will be placed before the Parliament and state legislatures during the Monsoon Session for amending them.

“Provided that the input tax credit in respect of such goods or services or both shall be available, where the provision of such goods or services or both is obligatory for an employer to provide to its employees under any law for the time being in force,” the draft amendments said.

However, it will not apply in for other services such as membership to health and fitness centres, clubs, and other transport benefits offered by the employer.

Under the fresh amendments e-commerce companies are also not required to seek registration under GST if their annual turnover is less than Rs 20 lakh, the report added. Other than that, they are not required to collect tax at source as per Section 52.

The government said that the measures are aimed at making the regime taxpayer-friendly, with an aim to help small e-commerce firms and most other small-scale employers. The government, on July 1 celebrated GST Day, claiming that it has helped in significant growth and exuded confidence that it would do be able to streamline it to make it an easier indirect taxation system.


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