Draft GST Return Forms To Be Put Up On 'myGov.in' Portal On Nov 1 For Public Comments

In an attempt to minimise mismatch notices under the Goods and Services Tax, the Finance Ministry will on November 1 put up on 'myGov.in' for consultation the revamped GST return forms, including the GSTR-1 in which businesses report outward supplies, a senior official said on Thursday.

The draft GST forms -- GSTR-1/1A/IFF-- were approved at the 57th meeting of the GST Council, comprising Centre and state finance ministers, on October 8. The changed forms will be applicable from April 1, 2027.

The Central Board of Indirect Taxes (CBIC), under the Finance Ministry, will put up the forms for public comments on 'myGov.in' portal and the consultation process would be open till November 30.

CBIC, Commissioner (GST Policy Wing), Gaurav Singh, said a major painpoint in GST currently is the mismatch of returns and almost 80 per cent of notices are issued due to such mismatches.

At present, businesses can modify or edit GSTR-3B (self declared summary return and monthly tax payment form), which leads to mismatches with GSTR-1.

Singh said based on industry responses on the reasons why businesses edit their GSTR-3B, the GST forms have been tweaked and the invoice management system (IMS) has been improved.

"Based on the industry responses, we are modifying GSTR-1 form, we are improving the IMS so that the need for editing 3B does not arise. If the need does not arise, there won't be any case for notice based on mismatches. We will put the forms on 'myGov' for comments on November 1 with a 30-day window," Singh said.

If reforms in GST returns system can be implemented successfully, the integrity issues in the supply chain get resolved. This would be the foundation for further reforms, he added.

Invoice Furnishing Facility (IFF) is an optional monthly statement filed by taxpayers under the GST Quarterly Return Monthly Payment (QRMP) scheme.

GSTR-1 is a monthly invoice-wise sales return, while GSTR-1A is an amendment statement that allows taxpayers to correct errors or add missed invoice details before filing their monthly GSTR-3B return.

The GST Council had on October 8 approved an alternate mechanism for making amendments to tax liabilities and input tax credit (ITC) claims in GST returns to minimise mismatches and reduce notices/intimations.

The Council approved enhancements in GST Forms GSTR-1/1A/IFF to enable better reconciliation of the details furnished in these forms with the details reported in the returns in monthly tax payment form GSTR-3B.

It approved a mechanism of correct reporting and correction/rectification of liability in the returns, so that tax liability in GSTR-3B aligns with the details of liability furnished in GSTR-1/1A/IFF. Also, the Council cleared changes in GST DRC-03 Form, which is filed to declare details of the invoices for which payments have been made.

The Council approved insertion of sub-rule (6A) in the rule 60 of the CGST Rules, 2017, for IMS to allow a recipient to accept, reject or keep pending a document pertaining to inward supply, for the purpose of generation of statement of ITC in GSTR-2B form (a system-drafted ITC statement which lists out available tax credits).

It also approved a mechanism of correct reporting and correction/rectification of ITC in the return, so that ITC availed in the return in GSTR-3B aligns with the details of ITC made available in GSTR-2B.

The Council also approved insertion of a rule 86D in the CGST rules to provide for filing of an electronic statement of tax paid on reverse charge basis and input tax credit claimed.