The Finance Ministry will invite feedback from businesses on proposed changes to monthly Goods and Services Tax (GST) return forms from November 1, with the consultation period running until November 30. The amended forms are scheduled to come into effect from April 1, 2027.
Gaurav Singh, Commissioner in the GST Policy Wing of the Central Board of Indirect Taxes and Customs (CBIC), said the department would also work on streamlining the GST audit process to reduce difficulties for taxpayers, minimise mismatches and reduce notices and intimations issued to businesses. The proposed changes aim to improve reconciliation between GST returns, minimise mismatches and reduce notices and intimations issued to businesses.
The GST Council had approved the proposed changes at its 57th meeting, held on October 8. The approved changes cover Forms GSTR-1, GSTR-1A and the Invoice Furnishing Facility (IFF), with the aim of improving reconciliation between information reported in these forms and the monthly tax payment return, GSTR-3B.
The Council also approved an alternative mechanism to amend tax liabilities and input tax credit (ITC) in GST returns. The changes are intended to reduce discrepancies and limit the notices and intimations issued to taxpayers.
The notifications and circulars related to the decisions taken at the 57th GST Council meeting had been vetted by the Law Department and were expected to be made public on Friday, October 23.
Singh said resolving issues related to the integrity of the ITC chain would support further reforms in the GST system. He also said the department needed to review the audit process to ensure taxpayers were not subjected to harassment.
Currently, businesses operating across multiple states can face separate audits by GST authorities in each of those states. Streamlining the process is expected to be part of the department’s efforts to make tax compliance easier for businesses.
The consultation will give businesses an opportunity to identify practical difficulties with the proposed return forms before their implementation. The effectiveness of the changes will depend on whether they make reconciliation more straightforward and reduce inconsistencies between returns. The proposed review of GST audits is also relevant for businesses operating in several states, where separate state-level audits can add to compliance work. The publication of the detailed notifications and circulars, followed by the consultation process, will provide greater clarity on the final requirements.
Source from: https://propnewstime.com/latestnewsstories/Mzg4MDE=/gst-return-forms-to-be-open-for-public-comments-from-november-1-new-format-to-apply-from-april-2027
