Future of GST Returns
The new system of GST returns was supposed to be launched by 1st October this year. But instead of rolling out a new GST Return filing model, the Government plans to improve the existing GST return filing system. The information in this respect was shared by Shri Yogendra Garg, Principal Commissioner, GST Policy at CBIC, in a webinar hosted by Assocham. He said that the move is aimed at making GST compliance much easier.
The Government is going to introduce a new form GSTR 2B, which will be like the GSTR 2A and will have details of purchases of the company or business 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.
New features likely to be added in the new improved version of the existing return system include matching tool for comparison of GSTR 2A with purchase register, communication channel between buyer and seller, and an improved comparison table of tax liability and input tax credit (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 flow of ITC.
The GST Network is working on modifying and improving the current returns and will soon announce an advanced version of the existing system.