Draft paper released on changes to GSTR-3B

Draft paper released on changes to GSTR-3B


The Central Board of Indirect Taxes and Customs (CBIC) has released a concept paper, suggesting comprehensive changes in the GSTR-3B – a self-declared summary of goods and services tax (GST) returns filed by taxpayers – to make compliance easier and curb tax evasion.

The draft, approved by the GST Council in its 47th meeting held last month, has incorporated many recommendations by the industry such as auto population of values and streamlining process of input tax credit and IGST settlement, and allowing negative values.

The new GSTR-3B will also include auto-population of outward supplies from sales return and non-editable tax payment tables.

This will provide clarity to the taxpayer and tax officers, and minimise requirement of user input in GSTR-3B, easing its filing process, officials said.

This will also help curb the menace of fake billing, whereby sellers would show higher sales in GSTR-1 to enable buyers to claim input tax credit (ITC), but report suppressed sales in GSTR-3B to lower GST liability, they said.

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