The GST Board, at its meeting next week, will likely consider a proposal to make changes to the Monthly Tax Payment Form – GSTR-3B, which would include auto-filling of outgoing supplies from the sales statement and tax payment chart cannot be changed, officials said.
The move would help reduce the threat of mis-invoicing, whereby sellers would post higher sales in GSTR-1 to allow buyers to claim an input tax credit (ITC), but report suppressed sales in GSTR-1. 3B to reduce GST liability.
Currently, a taxpayer’s GSTR-3B includes automatically generated input tax credit (ITC) statements based on incoming and outgoing B2B supplies and also flags any incompatibilities between the GSTR-1 and 3B.
In accordance with changes proposed by the GST Board Laws Committee, there will be auto-filling of values from GTSR-1 in GSTR-3B into specific rows to match one-to-one to a large extent between the rows of the two forms of declaration, thus bringing clarity to the taxpayer and to the tax officials.
The change would minimize the requirement for user input into GSTR-3B and make the GSTR-3B filing process easier, an official said.
The fee payment table on Form GSTR-3B will be automatically populated from the other tables on the form and cannot be changed, in accordance with the modified form recommended by the Council’s Law Committee.
Noting that the amendment to Form GSTR-3B, to the extent possible, should flow from the amendment to Form GSTR-1, with respect to outgoing liabilities, the Committee suggested that, to provide greater clarity to taxpayers, a separate change table (for liabilities) can be entered into GSTR-3B, so that any changes made in the GSTR-1 form are clearly reflected in GSTR-3B.
Similarly, a modification table can also be incorporated into GSTR-3B to show any modification in the ITC part, the Committee suggested.
Once the changes proposed by the Laws Committee have been approved in principle by the GST Board, the revised form will be released to the public domain for stakeholder consultation. The GST Board at a later meeting will then approve the final form.
Currently, taxpayers file outbound supply returns in GSTR-1 by the 11th day of the following month, while taxes are paid by filing GSTR-3B between the 20th, 22nd and 24th of each month for different categories of taxpayers .
Commenting on the proposed changes in GSTR-3B, Rajat Mohan, Senior Partner at AMRG & Associates, said tax reporting should change for e-commerce operators providing passenger transport services, accommodation services, housekeeping services and cloud kitchens. These e-commerce players would now be required to report deliveries on behalf of suppliers in their GSTR-1 and GSTR-3B in separate cells.
“E-commerce players like Uber, Swiggy, Zomato and MMT would see little change in monthly tax filings that will secure more data points for the government’s big data analytics system,” Mohan added.