The proposed changes would include auto-population of outward supplies from sales returns and a non-editable tax payment table, according to the officials. This move would likely curb and control the menace of fake billing to some extent. The sellers would show higher sales in GSTR-1 in order to claim higher ITC which is Input Tax Credit. But the actual reports show suppressed sales in GSTR-3B to lower GST liability.
Currently, GSTR-3B of a taxpayer includes auto drafted input tax credit (ITC) statements based on inward and outward B2B supplies and also red flags any mismatch between GSTR-1 and 3B.
The following changes are proposed by the law committee of the GST council:-
A separate amendment table for liabilities may be introduced in GSTR-3B so that any amendment made in the form of GSTR-1 will automatically get reflected in GSTR-3B clearly. Similarly, an amendment table may also be incorporated in GSTR-3B to show any amendment in the ITC portion.
Once all the changes will get finalized and will get the approval of the GST council the revised form will be put in the public domain for stakeholder consultation. The GST council will later approve the final version of the form.
Currently, the taxpayers file outward supplies statements in GSTR-1 by the 11th day of the subsequent month, while taxes are paid by the filing of GSTR-3B form between the 20th, 22nd, and 24th date of every month for different categories.
According to the Rajat Mohan Senior Partner Associate of AMRG & Associates, tax filings are set to change for e-commerce operators. It is for rendering passenger transportation services, accommodation services, housekeeping services, and cloud kitchens. Such e-commerce operators are required to report supplies on behalf of suppliers in GSTR-1 and GSTR-3B forms.
Big e-commerce companies such as Zomato and Swiggy will see more changes in monthly tax filings that will ensure more data points for the government system for big data analytics.