In a vital update for Goods and Services Tax ( GST ) taxpayers across India, the Goods and Services Tax Network ( GSTN ) has announced impending changes to the GST return filing process. Aiming to minimise human errors and enhance accuracy, GSTN has continuously improved its portal, but now itĀ has issued an advisory warning of Hard-Locking of the GSTR-3B returns.
Pre-Filled GSTR-3B Forms for Filing
To assist taxpayers in filing their returns more efficiently, the GST Portal now offers pre-filled GSTR-3B forms. These forms automatically populate tax liabilities based on declared supplies in GSTR-1, GSTR-1A, or the Invoice Furnishing Facility (IFF).
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Additionally, the Input Tax Credit (ITC) is auto-populated from GSTR-2B. Taxpayers receive a detailed, system-generated PDF of the auto-populated GSTR-3B, allowing for easy verification and reducing the likelihood of manual errors.
New Amendment Facility via GSTR-1A
Recognizing that mistakes can occur, GSTN has introduced a facility for taxpayers to amend incorrectly declared outward supplies in GSTR-1 or IFF through GSTR-1A. This feature provides an opportunity to correct liabilities before filing GSTR-3B, ensuring that returns are accurate and compliant with GST regulations.
Invoice Management System (IMS)
To further assist taxpayers in managing their inward supplies and claiming accurate ITC in GSTR-3B, GSTN has made available the Invoice Management System (IMS). This system allows taxpayers to take informed actions by accepting, rejecting, or marking inward supplies as pending. The IMS serves as a comprehensive tool to reconcile invoices and streamline the ITC claim process.
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Hard-Locking of Auto-Populated Values Starting January 2025
In a significant move, GSTN has tentatively scheduled, starting from the January 2025 tax period, to restrict any changes to auto-populated values in pre-filled GSTR-3B forms derived from GSTR-1, GSTR-1A, IFF, or GSTR-2B.
GSTN advises taxpayers that any required changes to auto-populated values should be made through GSTR-1A or the IMS. This approach ensures that all amendments are systematically recorded and reduces discrepancies between sellers and buyers.
Implications for Taxpayers
The upcoming restrictions mean that taxpayers must be more vigilant when declaring their supplies and claiming ITC. Errors or omissions in initial filings could become more challenging to correct once the hard-locking mechanism is in place. Therefore, leveraging the amendment facilities now and familiarise oneself with the IMS is crucial.
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The GSTN Advisory on 17th October stated that, āAttention ā Hard – Locking of auto-populated values in GSTR-3B
1.In order to assist taxpayers in filing their returns and minimizing human errors, GSTN has continuously improved the GST return filing process and in this endeavor the GST Portal now provides a pre-filled GSTR-3B form, where the tax liability is auto-populated from the declared supplies in GSTR-1/ GSTR-1A/ IFF, while the Input Tax Credit (ITC) is auto-populated from GSTR-2B. A detailed system generated pdf of the auto populated GSTR-3B is also provided to all the taxpayers.
2.Now, taxpayers also have a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing them an opportunity to correct their liabilities before filing their GSTR-3B. Additionally, to manage inward supplies and ensure accurate ITC claims in GSTR-3B, taxpayers have the option to take informed actions of accept/reject/pending on inward supplies via the Invoice Management System (IMS) which is now available to the taxpayers.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
3.It may be noted that tentatively from January 2025 tax period, the GST Portal is going to restrict making changes in auto-populated values in pre-filled GSTR-3B from GSTR-1/1A/IFF or GSTR-2B to further enhance accuracy in return filing system. It is once again suggested hereby that in case any change is required in auto-populated values, the same may please be handled through GSTR-1A or IMS.ā
Taxpayers are encouraged to utilise the auto populated GSTR-3B forms for ease of filing.
It is also recommended to amend any discrepancies through GSTR-1A promptly and dopt the IMS for managing inward supplies and ITC claims.
It is also wise to prepare for the upcoming hard-locking by ensuring all data is accurate before submission.
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