NEW DELHI: The finance ministry will soon release a consultation paper seeking public comments on the revamped goods and services tax (GST) return processes, said Gaurav Singh, commissioner, GST Policy Wing – I, Central Board of Indirect Taxes and Customs.
The draft paper on rules, forms, and the circular related to GST returns will be put up for consultation on the ‘myGov.in’ portal, Singh said. “We request everyone to examine the rules, the forms, and the circular we are proposing. It will be open for a 30-day window from November 1 till November 30,” Singh said at the National Conclave on GST 2.0 organised by the Associated Chambers of Commerce and Industry of India.
The consultation on the revamped processes follows the GST Council’s decisions earlier this month to streamline and simplify the return filing process to minimise mismatches in liability and input tax credit in returns. The Council recommended bringing into force the provisions for an alternate mechanism to amend liability and input tax credit in the GST return from April.
It had approved enhancements to various GST forms, including GSTR-1/1A/IFF to enable better reconciliation of the details furnished in these forms with the details reported in the returns in monthly tax payment form GSTR-3B.
The Council also recommended placing the proposed revised mechanism in the public domain for a time-bound consultation, which will be done from November 1. Finance Minister Nirmala Sitharaman has been authorised by the Council to approve requisite changes and modifications based on feedback received from the stakeholders.
“One of the persistent challenges under GST has been the inability to revise GSTR-3B once filed, even where errors arise from genuine reporting mistakes, timing differences or subsequent adjustments. This often results in system-generated intimations and avoidable disputes, even when the underlying differences are capable of reconciliation,” said Manoj Mishra, partner and tax controversy management leader, Grant Thornton Bharat.
Singh said that the mismatch of returns is a major pain point, and almost 80% of GST notices are issued due to such mismatches in returns. Based on responses from industry, the government is modifying the GSTR-1 form and improving the Invoice Management System so that the need for editing GSTR-3B does not arise, Singh said.
“The effectiveness of these reforms will depend on how the correction mechanism is operationalised, particularly the treatment of prior-period adjustments, genuine timing differences and safeguards against duplicate claims,” Mishra said. “If implemented with adequate flexibility and clear rules, the reform could materially reduce mismatch-driven notices and shift compliance from post-filing dispute resolution towards error prevention,” he added.
Singh said that while the latest GST Council meeting focussed on simplifying processes, a lot remains to be done regarding GST audits. He asked the industry to give suggestions on how audits can be improved.
“Audit is one thing which is a pain point, which we could not much about this time because I didn’t have the bandwidth to look at audit this time. But audit is one thing that I think we need to have a look (at),” Singh said.
“In audit, a lot of the things the machine can do. Why should the officer go through the same process again. So we would like the industry to come back to us with suggestions on how to do audit in better ways,” Singh said.
Source: The Financial Express
