Govt planning to set up GST centres to help small traders in return filing

New Delhi: Like Aadhaar centres, the government is planning to set up GST centres which will help small businesses in filing their returns as compliance remains a big issue with small traders, micro and small and medium enterprises. The ministry is also looking at a new app-based solution for filing returns, the Times of India said in a report citing sources.

GSTN, the company that provides the information technology backbone, has been asked to look at the option, where some of the professionals aiding business entities in filing returns will be roped in. GSTN is, however, of the view that the new tax alone may not generate sufficient footfalls and the idea could be expanded to cover income tax and even corporate filings, resulting a delay in finalisation of the plan, the publication mentioned.

Earlier also the govt had thought of helping small businesses file returns but nothing was done in this regard, despite compliance seen to be the biggest concern for over two-and-a-half years.

Large businesses, which were more organised, have managed to make a transition and some have devised ways to make their suppliers compliant. For instance, one of the largest FMCG multinationals has linked the release of payments to filing of GST returns by its suppliers. Similarly, another large corporate house is completing the filing formalities for its vendors, the publication mentioned.

However, those who are not part of the supply chain are still finding return filing difficult. Small businesses were depending on chartered accountants to file returns and maintain accounts. But CAs were themselves over-burdened and had taken up business beyond their capacity. In any case, a large part of the returns were being filed by accountants, who are working with CAs.

“Earlier, these accountants would come and collect papers from traders and file returns. A similar system needs to be devised since businessmen are still not confident,” the publication quoted a tax officer as saying. The idea is to tie up with some of the service providers who are handling filing part and make their services available at GST facilitation centres.