GST Return Filings: GST Council recommends major changes

The GST Council 55th meeting, held in Jaisalmer, Rajasthan, recommended some major changes in the GST return filing. The first change was to amend section 38 of CGST Act, 2017 and rule 60 of CGST Rules, 2017 to provide a legal framework in respect of generation of FORM GSTR-2B based on the action taken by the taxpayers on the Invoice Management System (IMS).

The Invoice Management System facility is available on GST Portal, but it is not mandatory to take action on invoices in IMS dashboard for GSTR-2B generation.

Section 39 (1) of CGST Act, 2017 and rule 61 of CGST Rules, 2017 will also be amended to provide that FORM GSTR-3B of a tax period shall be allowed to be filed only after FORM GSTR-2B of the said tax period is made available on the portal.

Reversal of ITC in case of Credit Notes

New GST rule 67B in CGST Rules, 2017, will be inserted on the recommendation of GST Council to prescribe the manner in which the output tax liability of the supplier shall be adjusted against the credit note issued by him.

Section 39 (1) of CGST Act, 2017 and rule 61 of CGST Rules, 2017 will be amended to provide that FORM GSTR-3B of a tax period shall be allowed to be filed only after FORM GSTR-2B of the said tax period is made available on the portal.