The government plans to improve the existing GST return filing system instead of rolling out a new model. The new system was supposed to be launched on October 01, 2020 this year. Yogendra Garg, Principal Commissioner, GST Policy at CBIC, while speaking at a webinar hosted by Assocham, said that the move is aimed at making compliance much easier.
The GST Network, the IT support of the GST regime, is working on modifying and improving the current returns and will soon announce an advanced version of the existing system.
They are going to introduce a new Form GSTR-2B, which like the GSTR-2A will have details of purchases of the company or business with added information on input tax credits. The existing GSTR-1 form, which captures sales-related information, will be more detailed. Form GSTR-3B, which gives the tax computation, will be auto-populated.
New features likely to be added in the new improved version of the existing return system include a matching tool for comparison of GSTR-2A with purchase register, the communication channel between buyer and seller, and an improved comparison table of tax liability and input tax credit (ITC) after incorporating ITC on IGST paid on imports.
The GSTN is also looking to reduce errors on part of taxpayers by improving the process of linking GSTR-1 with GSTR-3B and GSTR-2A data with GSTR-3B for the flow of ITC.
Meanwhile, Garg also said that the e-invoicing, a form of electronically-authenticated invoices, will be implemented from October 01, 2020 only for businesses with a turnover of Rs 500 crore or more. Earlier, it was planned to implement e-invoicing for businesses with a turnover of Rs 100 crore or more in a year.