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charge basis. Previously, in BGR Energy’s case, the Madras High Court conclud-
ed that the exporter is liable to pay Service Tax, as it is the recipient of services.
He added that the ratio of this judgment is relevant for taxpayers and
banks in the GST regime as well.
The Central Board of Indirect Taxes and Customs (C.B.I. & C.) had pro-
vided a contrary clarification that the Indian bank receives services from the
overseas correspondent bank.
[Source : Business Standard, New Delhi, dated 8-8-2020]

GST filing without technical glitches is critical : Experts

Smooth execution sans technical glitches is critical for the revamped and
simplified Goods and Services Tax return filing system, said experts. They also
underlined the need to conduct adequate testing of the new facility by the GST
Network (GSTN) before its proposed rollout in September.
Since the introduction of GST in July, 2017, the return filing system has
seen several glitches, forcing deferments of the deadlines multiple times.
“Businesses would expect that adequate sandbox testing is done by
GSTN and there are no perfunctory changes, which ultimately impact their cur-
rent compliance setup,” said Harpreet Singh, Partner for Indirect Taxes at KPMG
India.
The Government plans to link GSTR-1, the form used to fill outward
supplies, with GSTR-3B, which is used to provide the returns summary. This is
expected to reduce mismatch of information through auto-population. The link-
ing is expected to lead to reduced cases of input tax credit mismatch, unintended
errors and also help prevent tax evasion.
A new Form, GSTR-2B, will be introduced as a statement for taxpayers
providing details on available input tax credit and ineligible credit. A quarterly
filing facility of GSTR-3B for taxpayers with less than ` 5 crore of annual turno-
ver is also in the pipeline.
“Linkages of the various pieces of information filed by taxpayers in or-
der to minimise manual data interventions by taxpayers would assist all busi-
nesses,” Deloitte India Partner M.S. Mani said.
“...issues related to downloading of returns filed and re-credit in case of
refund rejections should be looked into to improve the system further, ” PwC
India Partner Pratik Jain said.
Insiders said the Government decided to revamp the existing system, in-
stead of developing a new one, to ensure stability for taxpayers who had been
complaining of glitches and errors in the system. The GST Council had also
asked the GSTN to beef up the system to reduce the number of complaints.
[Source : The Economic Times, New Delhi, dated 11-8-2020]

GST tech overhaul to ease compliance

Filing Goods and Services Tax (GST) returns will be easier with techno-
logical changes set to be introduced over the next few months, while putting on
hold the simplified return-filing system, which had been proposed earlier.
Instead of completely changing the return forms, the effort is now to in-

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