Two proposals for effecting procedural changes in the filing of tax returns under the GST regime could come as a boon for businesses currently reeling under complex returns filing processes.

A ‘Committee on Invoice’ set up by the GST Council is set to present these proposals before the Council in the coming days. A Hindu Business Line report claims that these proposals if implemented can do away with the business’ needs to file GST returns.

The first proposal which relates to business to business (B2B) transactions envisages the usage of a Distinct Invoice Number (DIN) which would be procured by the seller from the GST server. Each invoice would carry the DIN, and the buyer would be required to cite the DIN in the purchase invoice while raising his own selling invoice after value addition from his end. With both invoices being uploaded to the GST server, a match between the same would enable the buyer to avail tax credit.

A key reason behind this proposal is to capture the details of the invoice which is the single most important document in any transaction which also captures details of the value chain and the taxes to be paid. Currently, it was recognised that the “invoice, as such, is not being captured in its raw form anywhere”.

The second proposal aims to check the evasion of tax at the business to consumer (B2C) level by conferring a consumer number to every citizen. After the procurement of any service or good, the consumer could log on the GST portal and match the DIN in his invoice with his consumer number which would act as proof of his GST payment. If the seller, in this case, does not discharge GST, then he could be caught and punished thus checking a source of tax leakage.

distinct invoice number

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