Everything you must know about the latest updates on the GST portal

The Goods and Services Tax Portal or GST Portal has recently been rolling out some new features in its functionality. These include change to forms, access to data etc. Here’s a run down on all the latest updates on the GST portal. 

Data from 2017 can now be accessed by taxpayers

Recently, taxpayers were suddenly unable to access and download data of July 2017 returns from the GST portal causing much concern. After taxpayers wrote complaints to the GSTN, the GST network issued the following statement, ‘Facility to view, file and download returns of the period July 2017 has been restored on the portal. The functionality to enable taxpayers for filing revocation applications again, in view of ROD order No.01/2020 has been implemented w.e.f. 6th August, 2020’

New features on GSTR-9 returns form

In a move that will provide much relief, taxpayers will now be able to download details of invoices that have been mentioned in the annual return form, GSTR-9. Earlier, Table 8A under GSTR9 only featured financial figures. This made it practically impossible for use as data when a taxpayer wished to file a reconciliation claim as they were unable to provide a break up of the invoices. 

Tax professionals and taxpayers had expressed inconvenience regarding the same while filing the annual return for FY 2017-2018. However, this has now been corrected and taxpayer’s have the option to access and download an invoice wise break up of input tax credit under Table 8A. 

GSTR-1 and GSTR-3B to be linked to determine input tax credit and liability

In yet another initiative to curb fraudulent claims for input tax credit through fake invoices, the GSTN is implementing an in-built invoice matching system to determine input tax credit and liability. 

As per the current system, taxpayers are required to file GSTR-1 for outward supplies and GSTR-3B, a summary return for sales and input tax credit and GSTR-2A, which is a purchase-related tax return. The GSTR-2A form is automatically generated for each business by the GST portal. So, when a seller files their GSTR-1 form, the information is automatically captured in GSTR-2A.

But since GSTR-1 and GSTR-3B are not linked, it allows taxpayers to file different values which means taxpayers can make mistakes or even file fraudulent invoice details. This will now be correct and the two return forms will now be linked and will provide taxpayers with a system generated functionality for auto-populating values from GSTR 1 and GSTR 3B. This new initiative is expected to auto-populate returns thereby minimize errors, ease reconciliation and simplify compliance. 

Meanwhile, the load handling capacity of GST Portal has also been enhanced to 300,000 taxpayers at one point of time as against the earlier 150,000 taxpayers to help avoid glitches during peak hours of return filing. 

GSTR-2B to be introduced for claiming ITC 

Another measure for curbing fraudulent ITC claims that will be implemented soon will be the introduction of GSTR-2B form for claiming input tax credit. At present, input tax credit is claimed on a self-declaration basis often resulting in a mismatch and ultimately increased reconciliation cases. Under the new system, GSTR-2B will be generated on the basis of GSTR-1 that is filed between two due dates by counter-party suppliers, for availing credit in GSTR-3B in a month. 

A number of indirect tax initiatives have been delayed or shelved or altered mainly due to the pandemic. But the GSTN is expected to make a strong comeback with fresh initiatives to ease tax compliance and simultaneously keep tax fraud in check.