The GST Network, the IT support of the GST regime, is working to modify and improve current returns and will announce an advanced version of the existing system soon
Instead of rolling out a new model, the Government aims to develop the current GST return filing system. Governments this move will make compliance much easier. It is Supposed to be launched on 1 October of this year.
The government will implement a new form GSTR 2B which, like the GSTR 2A, will have client or business purchase details with added input tax credit information. The existing GSTR 1 form, which collects information relating to sales, will be more comprehensive. Form GSTR 3B, which provides the tax computation, will be auto-populated.
New features likely to be added in the Updated version of the existing return system includes:-
- A Matching tool to compare GSTR 2A with the register of purchases
- The communication channel between buyer and seller
- Improved Tax Liability and Input Tax Credit (ITC) comparison table since integrating ITC into IGST paid on imports.
The GSTN also seeks to reduce taxpayers’ error by improving the process of linking GSTR1 to GSTR3B and GSTR2A data with GSTR3B for flow of ITC.
A Form of electronically-authenticated invoices will be introduced for companies with a turnover of Rs 500 crore or more from October 1. Earlier, it was proposed to introduce e-invoicing for companies with a turnover of Rs 100 crore or more in a year.