New GST Returns might be shelved. Turnover for E-Invoicing increased.

New GST Returns might be shelved. Turnover for E-Invoicing increased.

The Principal Commissioner for GST Policy at the Central Board for Indirect Taxes and Customs, Yogendra Garg has recently hinted in a webinar that the Centre might shelve the implementation of the New GST returns that were earlier supposed to be rolled out in April 2020 but were later rescheduled for an October 2020 launch. Instead, the Centre plans to launch an advanced version of the existing returns with a phased implementation from October 2020 to January 2021.

The GST Network is working on modifying and improving the current returns and will soon announce an advanced version of the existing system. The principal commissioner for GST policy at CBIC has hinted that the following modifications have been planned in the advanced version, and might be implemented starting October 2020. 

  • GSTR 2B - auto-drafted Input Tax Credit (ITC) statement to guide on the ITC to be availed or reversed (similar to earlier envisaged GSTR 2)
  • A better detailed GSTR 1
  • GSTR 3B to be auto-populated based on the data furnished in GSTR-1 (similar to earlier envisaged GSTR 3)
  • GSTR 2A to populate return filing status of both GSTR 1 and 3B;
  • Linking of GSTR 1 and GSTR 2A with GSTR 3B
  • A matching tool for comparison of GSTR 2A with the purchase register
  • A communication channel between the supplier and the recipient
  • Improved comparison table for tax liability and ITC

While the New Returns System might be shelved, the implementation of eInvoicing remains on schedule and is expected to roll out in October 2020. However, the mechanism which is currently limited to companies with an annual turnover of ₹100 crores,  might be initially made applicable only to businesses having an annual turnover of more than INR 500 crore for all B2B Supplies.

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