The Goods and Services Tax Network (GSTN) has issued an advisory to clarify certain misconceptions circulating about recent changes in the GST return filing process, particularly concerning the Invoice Management System (IMS) and Input Tax Credit (ITC) flow.
No Change in ITC Auto-Population Process
GSTN has confirmed that the existing process for ITC auto-population will continue unchanged. The Input Tax Credit (ITC) will still be auto-populated from GSTR-2B to GSTR-3B without any manual intervention by taxpayers. This means businesses do not need to make any adjustments or modifications in the auto-filled ITC data during return filing.
GSTR-2B Generation Schedule
The GSTR-2B statement, which provides a summary of eligible and ineligible ITC, will continue to be generated automatically on the 14th of every month. Taxpayers can rely on this statement for accurate ITC computation and compliance.
Flexibility in Invoice Management System (IMS)
A key feature of the updated Invoice Management System (IMS) is that taxpayers can take actions even after GSTR-2B generation. This includes verifying, accepting, or marking invoices as pending. Importantly, if any modifications are made in IMS post-generation, taxpayers have the option to regenerate GSTR-2B to reflect the latest data.
Handling of Credit Notes
For credit notes, GSTN has clarified that recipient taxpayers have the flexibility to keep them pending if they choose not to adjust them immediately. In such cases, taxpayers can manually adjust the ITC reversal amount in GSTR-3B to correctly reflect the ITC impact.
Key Takeaways
- No manual intervention needed for ITC auto-population from GSTR-2B to GSTR-3B.
- GSTR-2B will continue to be generated automatically on the 14th of each month.
- Taxpayers can act on invoices in IMS even after GSTR-2B is generated and regenerate it if necessary.
- Flexibility provided for handling credit notes and ITC reversals.
The GSTN advisory thus reassures taxpayers that the recent system updates aim to enhance flexibility and transparency without altering the fundamental return filing process. Businesses are advised to stay updated through official GSTN communications and avoid reliance on unverified social media reports.