Major Changes In GST Return Filing For Taxpayers

Major Changes In GST Return Filing For Taxpayers

Sections 37, 39, 44, and 52 of the CGST Act, 2017 will be changed to limit the amount of time in which returns and statements may be filed to a maximum of three years following the applicable return or statement’s due date.

The FORM GSTR-1 will be changed to allow the supplier to report details about supplies made through ECOs that are covered by sections 52 and 9(5) of the CGST Act of 2017 and the ECO to report information about supplies made under section 9(5) of the CGST Act of 2017.

Rule 88C and FORM GST DRC-01B to be inserted in CGST Rules, 2017 for intimation to the taxpayer, by the common portal, about the difference between liability reported by the taxpayer in FORM GSTR-1 and in FORM GSTR-3B for a tax period, where such difference exceeds a specified amount and/ or percentage, for enabling the taxpayer to either pay the differential liability or explain the difference. Further, clause (d) to be inserted in sub-rule (6) of rule 59 of CGST Rules, 2017 to restrict furnishing of FORM GSTR-1 for a subsequent tax period if the taxpayer has neither deposited the amount specified in the intimation nor has furnished a reply explaining the reasons for the amount remaining unpaid. This would facilitate taxpayers to pay/ explain the reason for the difference in such liabilities reported by them, without intervention of the tax officers.

To reduce uncertainty and legal disputes regarding the taxation of OIDAR Services, the meanings of “non-taxable online recipient” under section 2(16) of the IGST Act, 2017 and “Online Information and Database Access or Retrieval Services (OIDAR)” under section 2(17) of the same act have been modified.

To prevent a person’s PAN from being misused by dishonest individual people without the permission of the said PAN-holder, a PAN-linked mobile number and email address (fetched from the CBDT database) must be captured and recorded in FORM GST REG-01. OTP-based verification must also be carried out at the time of registration on such PAN-linked mobile number and email address.

The recommendations of the GST Council have been presented in this release containing major item of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law.


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