New GST return system scrapped; Modified GST Returns Coming Soon!
Goods and Service Tax: The government plans to improve the existing GST return filing system instead of rolling out a new GST Return filing model. The new system was supposed to be launched on 1 October this year. Yogendra Garg, Principal Commissioner, GST Policy at CBIC, while speaking at a webinar hosted by Assocham, said that the move is aimed at making compliance much easier.
The GST Network (GSTN), the IT support of the GST regime, is working on modifying and improving the current returns and will soon announce an advanced version of the existing GST Return system.
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.
New features likely to be added in the new improved version of the existing return system include matching tool for comparison of GSTR 2A with purchase register, communication channel between buyer and seller, and an improved comparison table of GST liability and input tax credit (ITC) after incorporating ITC on IGST paid on imports.
The GSTN is also looking to reduce error on part of taxpayers by improving the process of linking GSTR1 with GSTR3B and GSTR2A data with GSTR3B for flow of ITC in the business chain .
Meanwhile, Garg also said that the e-invoicing, a form of electronically-authenticated invoices, will be implemented from 1 October only for businesses with turnover of Rs 500 crore or more. Earlier, it was planned to implement e-invoicing for businesses with turnover of Rs 100 crore or more in a year.
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