Upcoming Option for Taxpayers and Businesses to Rectify Submitted GST Returns

To simplify the experience for taxpayers and minimize legal challenges related to indirect taxes, the government is contemplating the possibility of allowing individuals and businesses to file revised Goods and Services Tax (GST) returns.

While such a provision is already in place for income tax filers, the current GST system only permits minor adjustments in invoice details, lacking the flexibility for comprehensive revisions. Various organizations and industry bodies have advocated for the inclusion of this feature.

An official noted that enabling the revision of GST returns could streamline the filing process and contribute to a reduction in legal disputes. This would be particularly beneficial in cases where taxpayers unintentionally miscalculate or overlook certain information, emphasizing the intent to facilitate rather than evade tax.

The Central Board of Indirect Taxes and Customs (CIBIC) is in the process of finalizing the specifics of this proposal, which will subsequently be presented to the Law Committee of the GST Council.

The proposal will eventually be presented to the GST Council, with an initial focus on incorporating this provision for annual returns, followed by potential expansion to include quarterly returns.

Pending approval, the implementation of this provision would necessitate a substantial upgrade to the GST network. According to a GSTN official, if all aspects proceed smoothly, the new facility could be enforced by April 2025.

Several sources highlight the importance of regular updates to the GST return form to align with financial changes. This includes adapting the yearly return form to reflect revised input tax credit reporting introduced in monthly returns. The emphasis is on real-time data collection and validation, with businesses having the flexibility to edit all fields in the auto-populated return.

Tax authorities have issued around 33,000 GST notices to businesses for discrepancies in filed returns and underpayment of taxes during the 2017-18 and 2018-19 financial years.

Finance Minister Nirmala Sitharaman, on December 4, reported that the average monthly total collections for this financial year have reached Rs 1.66 trillion. Highlighting that GST collections have consistently surpassed Rs 1.50 trillion each month, she noted a record-breaking Rs 1.87 trillion in April 2023.

Also Read: December 31 Deadline for ITR Filing: Learn the Process and Applicable Penalties for Late Returns

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