GST Return Filing Reforms: Starting September, taxpayers in India will need to adjust their GST return filing practices due to significant changes aimed at enhancing compliance and financial transparency. These updates, which include revised reporting thresholds and new liability adjustments, will impact all taxpayers, according to a report by the Hindustan Times.
One of the key changes involves the reporting of high-value transactions. In another significant update, taxpayers will now be able to report negative liability in GSTR-3B’s Table No. 3, which will automatically be carried forward to the following month's return.
Additionally, from September 1, taxpayers who have not added and validated their bank account details in their GST registration will find their GSTR-1 or IFF filings blocked. Sharma highlighted the importance of this update, warning that failing to comply will prevent taxpayers from filing their returns.
These updates coincide with a 10 per cent increase in gross GST collections in August, which reached approximately Rs 1.75 lakh crore, indicating higher domestic consumption. Government data shows that GST revenues from domestic transactions grew by 9.2 per cent to about Rs 1.25 lakh crore, while revenues from imports rose by 12.1 per cent to Rs 49,976 crore. For comparison, July’s gross GST mop-up was Rs 1.82 lakh crore, while August 2023 saw collections of Rs 1.59 lakh crore, according to the Hindustan Times.
Despite the month-on-month decline, economic experts suggest that the growth in GST collections since its introduction remains robust. Manoranjan Sharma, Chief Economist at Informerics Ratings, pointed out that maintaining a high growth rate on a larger base is challenging. He highlighted the need to consider historical data for a more comprehensive analysis, as reported by ANI.
For 2024, GST collections have totalled Rs 9.13 lakh crore so far, representing a 10.1 per cent increase compared to Rs 8.29 lakh crore during the same period in 2023.
GSTN To Launch Invoice Management System From Oct 1
The GST Network (GSTN) will introduce the Invoice Management System (IMS) on October 1, aimed at helping taxpayers match their records and invoices with those issued by their suppliers, ensuring accurate Input Tax Credit (ITC) claims.
In an advisory to GST payers, GSTN announced that the IMS will enable taxpayers to efficiently handle invoice corrections or amendments with their suppliers through the portal. "This system will also assist taxpayers in matching their records and invoices with those issued by their suppliers to claim the correct ITC," GSTN stated.
IMS will allow recipient taxpayers to accept, reject, or keep an invoice pending in the system for future use. This feature will be available on the GST portal starting October 1.