This GST Move Could Discourage Honest Taxpayers As Government Moves To Simplify GST Returns Filing financialexpress.com

As the Narendra Modi government on Monday released the draft new GST returns forms, formulated with an aim to simplify the processes for filers, tax expert Parag Mehta says that there is a provision in the proposed system that will be deterrent for honest taxpayers. The tax department has put up draft returns forms — Sahaj and Sugam — for feedback from stakeholders.

The new GST returns filing process proposes that the Input Tax Credit (ITC) will be allowed only if the vendor uploads the invoice. “The company may upload the invoice but if the vendor fails to upload it before or within a specified time, ITC availed will be recovered from the company. This provision in the act is a deterrent for honest taxpayers from inception,” Parag Mehta, Partner, NA Shah Associates LLP told FE Online.