- GSTN has introduced two important functionalities to make GSTR-3B filing easier.
- The system will calculate the liability and availability of input tax credit for those filing returns.
- It is mandatory for 1.03 crore general taxpayers to file monthly tax return GSTR-3B (GSTR-3B)
Filing monthly returns in the Goods and Services Tax system this month will be full of better experiences for common taxpayers. The GST Network (GSTN) has provided some important features on its portal to link returns, which aims to simplify the filing process of GSTR-3B.
There are two problems
Typically, taxpayers face two main problems when filing GSTR-3B. These relate to their liability and input tax credit (ITC). Till now, taxpayers had to spend a lot of time to calculate both these figures. Now this work will be automatically completed by the system through two important functionalities.
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Liability calculation system for GSTR-3B filing
The outward supply statement will calculate the liability with a system break-up right after filing the monthly GSTR-1 and making it available as a PDF document on the taxpayer’s GSTR-3B dashboard. After matching this data can be used for filing GSTR-3B in August 2020 and beyond. At present, this facility is available to those filing monthly GSTR-1. This functionality will be available in the next few months for those filing GSTR-1 quarterly.
Auto-drafted input tax credit statement
Under this facility, the system will auto-generate the ITC statement with an invoice break-up based on the information provided by the taxpayer’s supplier. This means that the taxpayer can know how much ITC is available for the month. A new form GSR T-2B has been launched for this purpose. This is different from the GSTR-2A statement, as 2B is a static document. It will be made available on the 12th day of the following month for each month.
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Prohibit under-reporting of liability
The linking of returns is expected to curb GSTN’s under-reporting of Liability and ITC’s over-repotring of ITC. This has been a matter of concern for both governments. Once these two statements are used by the taxpayers, the data from them will automatically start being transferred to GSTR-3B. In other words, TOGSTN will auto-populate taxpayers’ GSTR-3B returns.