Modi govt introduces four Bills in the Lok Sabha to simplify GST returns

The government on Tuesday introduced four Bills in the Lok Sabha to amend the goods and services tax (GST) laws, to provide for simplified returns and raise a threshold for the composition scheme under the indirect tax system. A draft framework for the simplified return was put in the public domain recently.

Micro, small, and medium enterprises (MSMEs) that have annual turnaround of up to Rs 50 million will be able to file quarterly returns once the Bills are passed.

The Central GST (Amendment) Bill, the Integrated GST (Amendment) Bill, the GST (Compensation to States) Amendment Bill, and the Union Territory GST (Amendment) Bill are likely to be passed in the current session of Parliament.

Also, those with annual turnover of up to Rs 15 million will be allowed to opt for the composition scheme. Now, the threshold is Rs 10 million. The scheme provides for a flat and concessional GST rate, but does not give input tax credit.