GST Council likely to consider changes in monthly tax payment form.

A taxpayer's GSTR-3B contains automatically drafted input tax credit (ITC) statements based on incoming and outgoing B2B suppliers, and it also highlights any mismatch between GSTR-1 and 3B.

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GST Council

Officials said that the GST Council is likely to take into consideration a proposal for changes to the GSTR-3B monthly tax payment form, which would include auto-population of outward supplies from sales returns and a non-editable tax payment table.

The move would help curb the menace of fake billing, whereby sellers would show higher sales in GSTR-1 to enable purchasers to claim an input tax credit (ITC), but report suppressed sales in GSTR-3B to lower GST liability.

As per the changes proposed by the Law Committee of the GST Council, there will be auto-population of values from GTSR-1 into GSTR-3B in specific rows to establish one-to-one correspondence to a large extent between rows of the two return forms, thereby providing clarity to the taxpayer and tax officers

According to an official, the modification will simplify the GSTR-3B filing procedure and reduce the amount of user input required.

According to the revised form suggested by the Law Committee of the Council, the tax payment table in Form GSTR-3B will be auto-populated from other tables in the form and will not be editable.

A separate amendment table (for liabilities) may be introduced in GSTR-3B to provide more clarity to the taxpayers. This will ensure that any changes made to Form GSTR-1 are accurately reflected in GSTR-3B. The Committee noted that, to the extent possible, changes to Form GSTR-3B should follow changes to Form GSTR-1 concerning outward liabilities.

The Committee suggested adding an amendment table to GSTR-3B to show any changes made to the ITC part.

The revised form will be made available to the public for stakeholder feedback when the GST Council gives its preliminary approval to the revisions proposed by the Law Committee. The final version will then be approved by the GST Council at a subsequent meeting.

Currently, taxpayers must submit GSTR-1 declarations of outbound supplies by the eleventh day of the next month, and GSTR-3B tax payments must be made between the twentieth and twenty-fourth day of each month, depending on the category of taxpayer.

Rajat Mohan, Senior Partner at AMRG & Associates, commented on the planned revisions to GSTR-3B and stated that tax filings will change for online retailers offering passenger transportation services, lodging services, housekeeping services, and cloud kitchens. Such online retailers would now be required to disclose supplies on behalf of suppliers in separate cells on their GSTR-1 and GSTR-3B forms.

According to Mohan, “e-commerce companies like Uber, Swiggy, Zomato, and MMT would witness some modifications in their monthly tax filings, ensuring more data points for the government’s big data analytics engine.”

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