The GST Council may take this decision in its next month’s meeting. According to the source, the GST council may consider modifying the summary return and monthly tax payment form, also known as GSTR-3B in its meeting next month. This decision is taken with a view to check fake input tax credit claims and expedite the settlement of genuine ones.
According to the GST council, the modified GSTR-3B form will help in identifying fake and bogues claims from genuine ones. It will further make the process more efficient and transparent. The modified form will also ensure that the honest taxpayers are paying the tax on time and are able to avail of the ITC i.e Input Tax Credit benefit.
This decision of modifying the GSTR-3B will further bring more clarity to ITC disclosures. The modified GSTR-3B form is expected to be presented on the desk in the upcoming meeting of the GST council.
The modification in the GSTR-3B form will help in identifying the taxpayers who are claiming the ineligible tax credits according to the senior associate partner of AMRG & Associates. The new form will also bring changes in reporting the gross ITC by the financial institutions including banks and NBFCs.
Precise reporting of ITC will also reduce the unusual delays in the distribution of tax revenues between the center and states. In the next meeting, the council will also discuss hiking the tax from 18 percent to 28 percent on casinos, racecourses, online gaming, etc.
GSTR-3B form is a type of summary statement and monthly GST payment form that is filled in a staggered manner between the 20th, 22nd, and 24th of every month for different categories of taxpayers.