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GST Return Filing Changes

by Isha Jagi Blogger

The New Return System is very likely to be scrapped according to a recent statement in one of those ASSOCHAM Webinar.

A senior GST Official who engaged in a recent summit of ASSOCHAM about July 23 2020, 'ASSOCHAM e-Conclave about 3 decades of GST -- Additional streamline needed? ', implied that the Government is currently considering streamlining the present GST Return System and will crap the New Returns.

In addition, he indicated that the Central Board of Indirect Taxes and Customs (CBIC) will at a week's time come out with a telling about executing e-invoicing, from 1 October 2020 just for companies with turnover of Rs 500 CR or longer. Earlier that was anticipated to go livefor companies with turnover of Rs. 100 CR and over.

2 decades ago, New Returns were suggested from the 27th GST Council meeting having a goal to simplify compliance for the majority of the taxpayers by introducing one return filing model. The rollout that was expected to take place over a span of a year is invisibly because in the aftermath of non-readiness of this System.

From the recently held 39th GST Council Meeting, the New Returns were further postponed to 1st October 2020. Nonetheless, within this practice, it had been declared that the GST Policy Wing is focusing on optimizing the present system itself instead of introducing a totally new system.

The maximizing will happen in 2 ways:

Intro of New Forms/New APIs (such as GSTR 2B, Liability of 3B auto-compute in GSTR1)

Amending the Present Forms (such as GSTR 1)

Here's a listing of changes anticipated:

1. GSTR 1

1. Delinking of Invoice and Credit and Debit Notes: After this change is executed on GST portalsite, you'd no more should give invoice number as a reference in each debit or credit note.

2. Additional data fields for CDN: Following additional Data Fields will be provided for Debit and Credit Notes

3. Position of Supply

4. Reverse Charge

5. Invoice form (B2B, DE, SEWP, B2CL etc.. )

6. Modification in GSTR 1: Any modifications/update/change at GSTR-1 will soon be inserted along with their initial invoices to prevent double accounting entries.

7. Including of Month to Amended Invoices: Position of'amendment from the invoice' will probably be revealed along with the month at which the amendment has been created.

2. GSTR 2A

1. Delinking of Invoice and Debit and Credit Notes.

This may definitely mean with delinking in GSTR1, if buy invoices are populated on your GSTR2A there'll no more be one to one (or several ) mapping involving debit or credit notes and invoice. Hence reconciliation by netting off credit notes from an invoice won't be possible.

2. Expanded to add Import transactions details:

Covers import transactions under bill of entry, from overseas in addition to SEZ. This will comprise ITC auto-population in ICEGATE portal site (such as IGST paid in the time of Imports). Access to import details can help to calculate ITC maintain whilst filing of GSTR-3B.

3. Additional Information in GSTR 2A:

Following additional information will be provided in GSTR 2A:

· GSTR3B filing standing

· GSTR 1 filing period of the supplier, filing date of supplier

· Date of cancellation of supplier

· The interval where'original invoice' is observable in the Event of amendment

· Sort of amendment

By ITC promising standpoint, these are significant data points. GSTR 2A fetch will probably have this excess information. But it's uncertain if that additional information will be accessible henceforth and for the former period invoices.

3. GSTR 2B

This is a brand new return to be released. After functionalities could be anticipated:

· A stationary statement will be produced monthly. This is going to definitely be in the PDF format and it may be sent

· it's supposed to display Available and Unavailable ITC in Document-level

· ITC Summarization is going to be matched with GSTR 3B

· Immediate Download of PDF and Excel will be supplied

· Filter and Search Choices will be offered and there'll be innovative search to see files beyond 1000 documents

· Filter and Search Choices

4. GSTR 3B

· Auto-population of tax liability from GSTR1: Though ready independently, both of these returns- GSTR 1 and 3B, are connected. Thus far, taxpayers are receiving notices for disagreements between GSTR 1 and 3B. With this attribute (also as API) accessible, taxpayers are going to be in a better position to evaluate and track their own return data.

· ITC Calculation: Linking GSTR-2A/ GSTR-2B and ICEGATE data with ITC tables at GSTR-3B

· GSTR3B PDF: PDF Mail of registered GSTR-3B are also accessible.

5. Other Changes

· Department 8A at GSTR 9 reflects"ITC according to GSTR-2A (Table 3 & 5 )" that is non-editable. With GSTN supplying the details, the invoices considered rather than considered is now made accessible.

· Delinking of Debit credit note using invoice will also be completed in GSTR6 rescue and likewise GSTR 6A fetch data will also no longer have the invoice benchmark.

Read more about the GST Rule change from 1April 2021

Disclaimer: The above-mentioned upgrades will be subject to change since the official statement is awaited in the government.

Aside from these, changes of similar character are intended for returns that are registered by article traders and other taxpayers.

Being GSP, GSTN has shared their strategy with us along with the aforementioned changes will be published in staggered style from middle of July 2020 to middle of Aug 2020. The draft API specifications for all these changes are published, and a few GSTR 1 and 2A APIs will also be published on sandbox for testing.

Our evaluation on specifications and analyzing about sandbox is on and we're sharing our observations together with the GSTN staff and a few changes to the specifications may be anticipated.

The new changes will be implemented in IRIS GST in sync using the GSTN program and will be released incrementally. We're also researching what more insights and value added features we could provide along with the additional information that will now be accessible.

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