New Delhi, June 30: To commemorate the second anniversary of the GST implementation, the Modi government is set to introduce a new tax return system and other reforms tomorrow, July 1. Besides the new GST return system, rationalisation of cash ledger system and a single refund-disbursing mechanism are among other reforms that would be rolled out by the government.

According to a press release from the Ministry of Finance, 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 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. Income Tax Exemption Limit Would Be Raised by Modi Government, Says Survey.

The goods and services tax (GST) was launched at a majestic ceremony held in the Central Hall of Parliament at the midnight of June 30, 2017, and came into effect from July 1, 2017. At the event to mark two years of the GST implementation, a book on ‘GST for MSME’ will also be released. The government said GST has integrated India into a single common market by breaking barriers to inter-state trade and commerce. GST Day 2019: History and Significance of The Day Commemorating the Introduction of Goods and Services Tax in India.

GST reforms to be introduced:

New return system: Introduction of New Return System on trial basis from 01.07.2019 and on mandatory basis from 01.10.2019. SAHAJ & SUGAM Returns for small taxpayers are proposed

Single Cash Ledger: Rationalisation of Cash Ledger in such a manner that earlier 20 heads are merged into 5 major heads. There is only one Cash Ledger for Tax, interest, penalty, fee & others.

Single Refund Disbursing: The Central or State Government which sanctions refund disburses all four major heads of refunds namely CGST, SGST, IGST and Cess.

Threshold limit for goods: Threshold Limit of Rs 40 Lacs is offered of suppliers of goods as per the choice of States.

Composition Scheme for Services: Composition Scheme for small service providers up to annual turnover of Rs 50 lacs with a tax rate of 6%.

E-invoicing system: Electronic invoicing system in a phase-wise manner for B2B transactions is proposed to be introduced.

GSTAT: GST Appellate Tribunals are being established at various State Headquarters and area benches also.

The Central Board of Indirect Taxes and Customs’ officers who have put in hard work in the implementation of GST will be awarded ‘GST Commendation Certificates’ by Thakur, said the Finance Ministry.

(The above story first appeared on LatestLY on Jun 30, 2019 07:51 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).