Pre-filled GST return form before next FY

The Ministry of Finance intends to roll out pre-filled Goods and Services Tax (GST) return forms before the start of the next financial year, which is expected to tackle the issue of massive data mismatches leading to tax notices, according to a senior government official.

The department is right now assessing the extra cost of enhancing the digital infrastructure to prevent the system from holding up or crashing as a result of culling data from several databases.

The pre-filled consolidated GST return form is still in progress. It is possible to complete it before the beginning of the next financial year. We have a massive problem with data mismatches, which is causing an increase in the number of unnecessary demand notices, etc.

The pre-filled GST returns will prevent mismatches while also making business easier. currently using several templates for it.

Using data analytics and challenges identified by the system, the automated scrutiny module for GST returns offers notices to assessors where the data differences are greater than 20%.

For several years, the Central Board of Direct Taxes (CBDT) has utilised a similar pre-filled template for income tax return forms.

The Central Board of Indirect Taxes and Customs (CBIC) is now evaluating the technological requirements and upgrades required, as well as debating the additional cost impact of the process slowdown.

The finance ministry must outline the technological demands for digital infrastructure and processes, as well as how much it would slow down the system and response time as we automate more. When we collect data from several databases and populate it, there is a procedure that takes time and processing space. How much of an effect will it have? If we do not want it to slow down, additional infrastructure for design and internal processes must be put in place. What is acceptable as an additional expense vs the benefit is a commercial problem that is disputable.

In the beginning, a pilot will test how the pre-filled GST return form works and how long it will take.

“It’s a matter of taxpayers’ convenience, so GST Council permission is not required to go ahead with it,” mentioned the official.