The journey of Goods and Service Tax (GST) is like of roller coaster with so much twist and turns and ups and downs. Recently, Government has decided to roll out some new changes in GST Return.
In this article let’s see the changes which are going to be implemented soon in details.
1. Is New GST Return System going to be introduced?
As per the 31st GST Council Meet, it was announced that New GST Return System would be introduced for taxpayers. However, now the government plans to improve the existing GST return filing system instead of rolling out a new GST Return filing model. They are going to introduce a new form GSTR 2B, which like the GSTR 2A will have details of purchases of the company or business with additional information on input tax credits. The existing GSTR 1 form, which captures sales related information, will be more detailed. The Form GSTR 3B, which gives the tax computation, will be auto-populated.
Read Also: GSTR-10 : FAQs on filing of Final Return under GST
2. Reflecting status of GSTR-3B to be filed by the supplier
Currently, portal shows the status of filing of GSTR-1 by the supplier. This keeps the ambiguity with respect to the actual payment of the GST received by the supplier. Since input credit of the GST paid is allowed only if it is actually paid by the supplier in their GSTR-3b. Soon the GST portal will show GSTR 3b status as well.
3. “Amendment” status of invoices is visible in the month of amendment
Presently, if any invoice filed in GSTR-1 is amended, it was not showing it’s month of amendment due to which difficulty was arising while reconciliation of the invoices amended. This issue could be solved if this amendment is implemented.
Read Also: Maintenance of books of Account and Records under GST law
4. Auto population of Details of computation of invoices in Table 8A of GSTR-9
As we know, details in Table 8A of GSTR-9 are auto populated from the GSTR-1 filed by the supplier. And the details in respect of these invoices are not available, reconciliation problem arises. List of invoices appearing in GSTR 2A is also now available. This problem could be solved to an extent if details in respect of amount reflected in table 8A of GSTR-9 are given.
5. Amount of Input credit of GST paid on Import will be Reflected
Currently, Input credit of GST paid on import of goods or services was not reflected anywhere in the GSTR-2A. But a new form GSTR-2B will be introduced in which details of input credit available on imports will be reflected.
6. Form GSTR-2B: New Statement of Input credit available
New statement for input tax credit available and not available will be introduced in form GSTR-2B. The statement will be generated on monthly basis and will be mailed to the registered mail ID of the assesse. The details in form GSTR-2B will be fetched from GSTR-2A and it will be reflected in systematic manner where invoice wise ITC available and ITC not available will be bifurcated.
Since the data reflected in GSTR-2A goes to the original tax period, it does not reflect whether credit is available or not. Here all the credits available to the assesse including import, input service distributor and many more, will be visible. This will bring ease in filing of form GSTR-3B.
Read More: GSTR-3B : 10 common mistakes every taxpayers should avoid
7. Filing of NIL GSTR-1 and GSTR-3B via SMS
Filing of NIL GSTR-1 and GSTR-3B via SMS is now available. This feature is already rolled out by the government on 08th June 2020. It’s beneficial since it avoids time as well as cost of the taxpayers. Read More: GSTR-1 SMS Filing of Nil statement from 1st July : CBIC
8. Linking of GSTR-1 with GSTR-3B
At present, the problem faced was difference in the amount of turnover in form GSTR-1 and GSTR-3B. But now two forms will be linked together and liability calculated in form GSTR-3B will be linked to the invoices filed in form GSTR-1 by the assesse. This will avoid the difficulty in mismatching of turnover in forms GSTR-1 and GSTR-3B.
9. Linking of GSTR-2A and 2B with form GSTR-3B
Input Tax credit statement in form GSTR-2B will be introduced,where data from GSTR-2A will be pulled. This information in the form of GST credit available and GST credit not available will be then linked to the form GSTR-3B which will reduce the ambiguity of reconciliation of GSTR-2A.
Read More: GST Input Tax Credit (ITC) Set-off Rules – Simplified with examples
10. E-invoicing
The 39th GST council meeting has decided to implement the GST e-invoicing of bills under the GST scheme and applicability of QR codes from 1st October 2020. The threshold limit is also increased from Rs 100 crore to Rs 500 Crores.
Since government is keen to implement the new changes for making filing of GST returns easy, these upcoming changes can be proved to be fruitful for business as well as professional community.
For any questions, you may reach us at Discussion Forum
The author of the above article is Sneha Bhalotia.
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