New GST Returns Scrapped by Government: Modified version of Existing to Continue

The government plans to improve the existing GST return filing system instead of rolling out a new model. The new system was supposed to be launched on 1 October this year. As per officials, this move is aimed at making compliance much easier.

The GST Network, the IT support of the GST regime, is working on modifying and improving the current returns. New Version will be soon announced. This will be an advanced version of the existing system.

New GST Returns Scrapped by Government: Modified version of Existing to Continue

They are going to introduce a new form GSTR 2B. Form will be like GSTR 2A, but will have more details of purchases of the company or business. This will be with added 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.

E-Invoicing turnover threshold to be increased to Rs 500Cr from Rs 100Cr

New features likely to be added in the new improved version of the existing return system include a matching tool for comparison of GSTR 2A with purchase register, the communication channel between buyer and seller, and an improved comparison table of tax liability and input tax credit or 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 the flow of ITC.

Meanwhile, Garg also said that the e-invoicing will be implemented from 1 October only for businesses with a turnover of Rs 500 crore or more. Earlier, it was planned to implement e-invoicing for businesses with a turnover of Rs 100 crore or more in a year.

You May Also Refer:

• GSTR-2A data to be linked with GSTR-3B for better ITC management
• Discussion on New GST Return Changes