The government will today introduce the new return system on a trial basis on the second anniversary of Goods and Services Tax (GST).
It will come into force from 1st of October this year on a mandatory basis.
The Finance Ministry has also proposed Sahaj and Sugam returns for small taxpayers for the current fiscal.
The government will rationalize a single 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 and others.
The government has brought in various changes in the GST system in the last two years, both pertaining to the quantum of taxes, inclusion and exclusion of items. GST was launched on the 1st of July, 2017 from the Central Hall of Parliament on the midnight of 30th June that year.
The Finance Ministry says 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.
It has also integrated India into a single, common market by breaking barriers to inter-State trade and commerce.
Minister of State for Finance and Corporate Affairs Anurag Thakur will preside over the function to be held in New Delhi to mark the occasion.