The Finance Ministry will invite public comments on revised monthly GST return forms from November 1, as the government moves to cut mismatches in tax liability and input tax credit (ITC) claims.
Central Board of Indirect Taxes and Customs (CBIC) Commissioner (GST Policy Wing) Gaurav Singh said on Thursday that the amended forms will be put up on the MyGov portal on November 1. Businesses can send their comments till November 30. The revised forms will apply from April 1, 2027.
Singh added that the department will also work to streamline the GST audit process.
What the Council approved
The changes follow the 57th meeting of the GST Council on October 8. The Council is made up of the Centre and state finance ministers. It approved an alternate way to amend liabilities and ITC in GST returns, so that fewer mismatches arise and fewer notices and intimations go out to taxpayers.
The Council also approved changes to GSTR-1, GSTR-1A and the Invoice Furnishing Facility (IFF). These will help match the details given in these forms with the details reported in GSTR-3B, the monthly form used to pay tax.
According to the Council's press release, it also recommended a new rule 86D, which will create an electronic statement of tax paid under reverse charge and ITC claimed on the GST portal. It recommended a new sub-rule (1A) in rule 61 as well, so that the liability shown in GSTR-3B lines up with the details in GSTR-1, GSTR-1A and IFF. A circular will also explain how to report ITC and its reversal in GSTR-3B.
The Council has recommended that the new mechanism come into force from the April 2027 return. It also asked that the proposed changes be placed in the public domain for a time-bound consultation.
The notifications and circulars on the Council's decisions have been vetted by the Law department. They will be put in the public domain on Friday, Singh said. He said that once the integrity issues in the ITC chain are resolved, it will give a push to further GST reforms.
On audits, he said, "With regard to audit, we need to have a look." The process should be such that taxpayers face "no harassment", he added.
At present, businesses that operate in more than one state face separate audits by GST authorities in each of those states.
(With inputs from PTI)
Central Board of Indirect Taxes and Customs (CBIC) Commissioner (GST Policy Wing) Gaurav Singh said on Thursday that the amended forms will be put up on the MyGov portal on November 1. Businesses can send their comments till November 30. The revised forms will apply from April 1, 2027.
Singh added that the department will also work to streamline the GST audit process.
What the Council approved
The changes follow the 57th meeting of the GST Council on October 8. The Council is made up of the Centre and state finance ministers. It approved an alternate way to amend liabilities and ITC in GST returns, so that fewer mismatches arise and fewer notices and intimations go out to taxpayers.
The Council also approved changes to GSTR-1, GSTR-1A and the Invoice Furnishing Facility (IFF). These will help match the details given in these forms with the details reported in GSTR-3B, the monthly form used to pay tax.
According to the Council's press release, it also recommended a new rule 86D, which will create an electronic statement of tax paid under reverse charge and ITC claimed on the GST portal. It recommended a new sub-rule (1A) in rule 61 as well, so that the liability shown in GSTR-3B lines up with the details in GSTR-1, GSTR-1A and IFF. A circular will also explain how to report ITC and its reversal in GSTR-3B.
The Council has recommended that the new mechanism come into force from the April 2027 return. It also asked that the proposed changes be placed in the public domain for a time-bound consultation.
The notifications and circulars on the Council's decisions have been vetted by the Law department. They will be put in the public domain on Friday, Singh said. He said that once the integrity issues in the ITC chain are resolved, it will give a push to further GST reforms.
On audits, he said, "With regard to audit, we need to have a look." The process should be such that taxpayers face "no harassment", he added.
At present, businesses that operate in more than one state face separate audits by GST authorities in each of those states.
(With inputs from PTI)