GST Council recommends Changes in GSTR-1 for E-Commerce Portal Supplies

The 48th GST Council Meeting held in National Capital Delhi on today i.e. 17th December through virtual mode, has decided to to do some modification in GSTR-1 for the supplies made through e-commerce portals enclosed under section 52 and section 9(5) of CGST Act, 2017.

FORM GSTR-1 will be modified to require the supplier to provide information of supplies made through ECOs regulated by section 52 and 9(5) of the CGST Act, 2017, as well as reporting by the ECO in respect of supplies made under section 9(5) of the Central GST Act, 1961.

Subject to certain limitations, the GST Council granted in-principle approval to allow unregistered suppliers and composition taxpayers to make intra-state supply of products through E-Commerce Operators (ECOs) during its 47th meeting.

The Council authorised amendments to the GST Act and GST Rules, as well as the issue of appropriate notifications, to permit this. Furthermore, taking into account the time required for the development of the required features on the platform as well as ensuring the time for ECO preparation, Council has suggested that the scheme be implemented on October 1, 2023.

Rule 88C and FORM GST DRC-01B to be inserted in the CGST Rules, 2017 for informing the taxpayer, through the common portal, about the difference between liability reported by the taxpayer in FORM GSTR-1 and liability reported by the taxpayer in FORM GSTR-3B for a tax period, where such difference exceeds a specified amount and/or percentage, allowing the taxpayer to either pay the differential liability or explain the difference.

Furthermore, clause (d) is to be inserted in sub-rule (6) of rule 59 of the CGST Rules, 2017 to restrict the filing of FORM GSTR-1 for a subsequent tax period if the taxpayer has not deposited the amount specified in the intimation or has not provided a reply explaining why the amount remains unpaid. This would allow taxpayers to pay/explain the difference in such liabilities stated by them without the assistance of tax officers.

Form GSTR-1 is a monthly/quarterly Statement of Outward Supplies that must be filed by all regular and casual registered taxpayers who make outward supplies of goods and services or both, and it provides information on those outward supplies.