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2020 ] NEWS DESK J69
Under the new system, GSTR-2B will be generated on the basis of
GSTR-1 (sales return), filed between two due dates by counterparty suppliers, for
availing of credit in GSTR-3B (summary return) in a month. The functionality
will be ready by September and rolled out after approval by the GST Council.
The Forms - GSTR-1 (sales return) and GSTR-3B (summary return) - will be
linked, which will help taxpayers ascertain their tax liability. This will be sys-
tems-generated. A functionality is being developed to auto-populate values from
GSTR-1 and GSTR-3B, reducing the compliance load on assessees. “The new re-
turn filing mechanism will help buyers identify suppliers that are non-compliant
and follow up with them to file returns,” Bihar Deputy CM Sushil Modi, who
heads the GoM on IT under GST, said.
[Source : Business Standard, New Delhi, dated 10-8-2020]

No returns’ overhaul; ITC loopholes to be plugged

The Goods and Services Tax (GST) Council is likely to shelve the plan
announced last year to usher in a new format of tax returns and continue with
the existing system, with some improvements and modifications to plug loop-
holes.
A GoM, headed by Bihar Deputy Chief Minister, Sushil Modi, met last
week and agreed on linking GSTR-1 (outward sales return) and GSTR-3B
(monthly summary return), and introducing GSTR-2B document which would
provide exact Input Tax Credit (ITC) details to the taxpayers, according to a
source.
The group also decided to allow quarterly filing of GSTR-3B for taxpay-
ers below ` 5 crore turnover threshold, which could be introduced by November.
The relaxation for filing GSTR-1 returns once in a quarter is already
available to smaller taxpayers.
The linking of two returns - GSTR-1 and GSTR-3B - will eventually lead
to auto-population of GSTR-3B from GSTR-1. This would reduce the liability and
ITC mismatch currently reported, and the functionality is expected to come
online by the end of this month.
Further, the GST Network (GSTN) will deploy GSTR-2B this month, a
document which would be auto-populated with details of ITC available to tax-
payers. The data would be extracted from GSTR-1 filed by the counter-party
suppliers of a particular taxpayers. This would ensure that the assessee knows
the exact amount of credit to claim in GSTR-3B return.
A tax official said GSTR-2B is also expected to help the department to ef-
fectively implement its policy of restricting credit availability to those taxpayers
whose suppliers fail to upload invoices for the purchases otherwise claimed by
the assessee for availing ITC.
“GST taxpayers have been using the current system of GSTR-3B and
GSTR-1 returns for three years now and so it was considered appropriate to con-
tinue with the same broad system, instead of overhauling it with ‘Sahaj’ and
‘Sugam’ returns proposed earlier” the source said. Nandan Nilekani, Chairman
of Infosys had proposed these returns to the GST Council in July, 2018. The
GSTN, for which Infosys is the designated IT service provider, released the for-
mats for these return about a year later.
However, the source quoted above said as the development of these
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