CBIC is Working on Introduction of Revised GST Return Filing Option for Taxpayers by April 2025
In a potential game-changer for taxpayers, the government is considering the introduction of a revised GST return filing option as early as April 2025. This move, currently pending approval from the GST Council, aims to empower taxpayers, reduce litigation, and streamline the indirect tax framework.
Key Points:
Benefits for Taxpayers:
The proposed revision would allow taxpayers to rectify their GST returns comprehensively, including the computation of taxes. Currently, limitations exist for revising returns, only allowing minor corrections for invoice details on the portal. This change is expected to provide relief for unintentional miscalculations or omissions.
Industry Advocacy and Supreme Court Petition:
Industry stakeholders have long advocated for this provision, and there is already a petition before the Supreme Court on the matter. The absence of a revision option has been a persistent challenge, and the proposed facility aligns with existing practices under income tax regulations.
Streamlining the Process:
The Central Board of Indirect Taxes and Customs (CBIC) is actively working on the specifics of this revision, which will then undergo scrutiny by the law committee of the GST Council and the council itself. Initially, the facility may be implemented for yearly returns, with plans to extend it to quarterly filings thereafter.
Timeline and GST Network Upgrade:
Post-GST Council approval, the entire process is estimated to take 8-9 months, requiring a significant upgrade to the Goods and Services Tax Network (GSTN). A new technology vendor will be engaged for the GST portal, as the current contract with Infosys concludes on September 30, 2024.
Optimism and Challenges:
Officials from GSTN express optimism, aiming for a smooth implementation by April 2025. Experts emphasize the importance of timely updates to GST return forms, addressing natural human errors, and aligning with the robust compliance framework of GST.
Business Benefits and Real-Time Data Processing:
Businesses stand to benefit from the option to revise returns, especially when coupled with pre-filled returns. However, experts highlight the necessity of real-time data processing, validation, and the ability for businesses to edit all fields in auto-populated returns. Tax payment computations should be based on data populated by businesses to ensure accuracy in the revised filing process.
Conclusion:
The potential introduction of a revised GST return filing option by April 2025 is poised to be a significant step forward, offering flexibility and relief for taxpayers while aligning with the evolving landscape of indirect taxation. Stay tuned for further developments as the proposal progresses through the necessary approvals and implementation stages.
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