CBIC Invites Public Consultation on Alternate Mechanism for Amendment of Liability and ITC in FORM GSTR-3B :

The Central Board of Indirect Taxes & Customs (CBIC), Ministry of Finance, is inviting suggestions from taxpayers, CAs, CSs, CMAs, tax practitioners, industry associations, and other stakeholders on the proposed Alternate Mechanism for Amendment of Liability and ITC in FORM GSTR-3B.

In the 57th Goods and Services Tax (GST) Council meeting held on October 08, 2026, an Alternate mechanism was proposed for making amendments to liabilities and input tax credit in GST returns to minimise mismatches and reduce notices/intimations on account thereof.

According to official sources, the public consultation is open from November 01 to 30, 2026. The government has highlighted that every suggestion and feedback means a lot to them and will contribute in enhancing the proposed mechanism and making possible changes in GST liability.

The following are certain key amendments proposed:

• Outward Liability Alignment: Outward-liability corrections will route through GSTR-1, GSTR-1A, or the Invoice Furnishing Facility (IFF) rather than direct manual edits in GSTR-3B.

  

• ITC Matching & Reclaims: Non-RCM ITC will map directly to GSTR-2B through an enhanced Invoice Management System (IMS), with separate reporting mechanisms for reclaimed ITC.

• Reverse Charge Mechanism (RCM): Introduction of rule 86D and an Electronic Statement to streamline RCM tax payment and ITC reporting.

• Error Adjustments via PMT-10: Erroneous permanent reversals or reclaimable reversals are proposed to be managed via PMT-10/PMT-02A routes subject to Section 39(9) timelines.