The GST Council in its assembly subsequent week is prone to take into account a proposal for making modifications within the month-to-month tax fee type — GSTR-3B, which would come with auto-population of outward provides from gross sales return and non-editable tax fee desk, officers mentioned.
The transfer would assist curb the menace of faux billing, whereby sellers would present increased gross sales in GSTR-1 to allow purchasers to say enter tax credit score (ITC), however report suppressed gross sales in GSTR-3B to decrease GST legal responsibility.
Currently, GSTR-3B of a taxpayer consists of auto drafted enter tax credit score (ITC) statements primarily based on inward and outward B2B provides and in addition purple flags any mismatch between GSTR-1 and 3B.
As per the modifications proposed by the Law Committee of the GST Council, there might be auto-population of values from GTSR-1 into GSTR-3B in particular rows to determine one-to-one correspondence to a big extent between rows of the 2 return types, thereby offering readability to the taxpayer and tax officers.
The change would reduce the requirement of person enter in GSTR-3B and ease the GSTR-3B submitting course of, an official mentioned.
The tax fee desk in Form GSTR-3B might be auto-populated from different tables within the type and might be non-editable, as per the amended type really useful by the Law Committee of the Council.
Noting that modification in Form GSTR-3B, so far as possible, ought to movement from modification in Form GSTR-1, with regard to outward liabilities, the Committee recommended that for giving extra readability to the taxpayers, separate modification desk (for liabilities) could also be launched in GSTR-3B, in order that any modification made in Form GSTR-1 will get mirrored in GSTR-3B clearly.
Similarly, an modification desk can also be included in GSTR-3B to point out any modification within the ITC portion, the Committee recommended.
Once the modifications proposed by the Law Committee will get an in-principle approval of the GST Council, the revamped type might be put in public area for stakeholder session. The GST Council in a gathering later will then approve the ultimate type.
Currently, taxpayers file statements of outward provides in GSTR-1 by the eleventh day of the following month, whereas taxes are paid by submitting GSTR-3B between twentieth, twenty second and twenty fourth of each month for various classes of taxpayers.
Commenting on the proposed modifications in GSTR-3B, AMRG & Associates Senior Partner Rajat Mohan mentioned tax filings are set to alter for e-commerce operators rendering passenger transportation providers, lodging providers, housekeeping providers, and cloud kitchens. Such e-commerce gamers would now be made liable to report provides on behalf of suppliers of their GSTR -1 and GSTR-3B in separate cells.
“E-commerce players like Uber, Swiggy, Zomato and MMT would see few changes in monthly tax filings that will ensure more data points for the government system for big data analytics,” Mohan added.