Two major enhancements on GST portal to make monthly return filing easier
– GSTN deployed two major functionalities in view of the simplifying GSTR-3B filing
– System will compute liability and Input tax credit availability for the filer
– 1.03 crore normal taxpayers are required to file monthly tax return, GSTR-3B
New Delhi, 13th September 2020: The filing of the monthly return for normal taxpayers is going to be a far better experience from this month onwards. Thanks to the enhancements made by GSTN in form of linking of returns which is aimed to simplify the filing process of GSTR-3B. Usually, the taxpayers face two main issues while filing their GSTR-3B which are related to their liability and Input Tax Credit (ITC). Till now, taxpayers had to do a lot of exercises to compute these two data. Now, this job will be completed by the system itself through two important functionalities.
1. System to compute liability for filing of GSTR-3B: Just after the filing monthly GSTR-1, the outward supply statement, the system will compute liabilities along with the break-up and will make it available as a PDF document on the GSTR-3B dashboard of the taxpayer. This data can be used for filing of GSTR-3B for August 2020 and onward after reconciliation. Currently, this facility is available for monthly GSTR-1 filers. For quarterly filers of GSTR-1, this functionality will come in next few months.
2. Auto-drafted Input Tax Credit statement: In this enhancement, system will auto-generate the invoice-wise ITC statement based on information furnished by the suppliers of the taxpayer. It essentially means that the taxpayer can know how much ITC is available for the month. A new form GSTR-2B has been launched for this purpose which is, unlike GSTR-2A a static statement and will be made available for each month on the 12th day of the succeeding month.
The linking of returns is expected to give GSTN a big edge in curbing under-reporting of liability and over-reporting of ITC which has been a major concern for the Government. Once taxpayers get used to these two statements, the data from them will start automatically start flowing into GSTR-3B. In other words, GSTN will auto-populate the GSTR-3B return of the taxpayers.