The Institute of Chartered Accountants of India (ICAI) has made several suggestions on the draft Form GSTR-3B, which is used for filing monthly GST returns by registered taxpayers. Here are some of the key suggestions made by ICAI:
The ICAI has suggested that the form should be designed in a way that it can auto-populate the relevant data from GSTR-1 and GSTR-2A, to avoid duplication of data entry.
The ICAI has suggested that the form should provide for a separate section for transitional credit, with clear instructions and guidance on the computation and utilization of such credit.
The ICAI has suggested that the form should clearly distinguish between exempt supplies and zero-rated supplies, and that there should be a separate section for exempt supplies.
The ICAI has suggested that the form should be designed in a way that the payment process is simplified, and that taxpayers should be allowed to make payment directly from the form.
The ICAI has suggested that the form should provide for claiming credit on missing invoices, and that taxpayers should be allowed to upload such invoices on a later date.
The ICAI has suggested that the form should allow for revision of returns filed earlier, in case of errors or omissions.
The government has extended the e-invoicing system to businesses with a turnover of Rs. 50 crore or more from April 1, 2021. Earlier, the system was applicable to businesses with a turnover of Rs. 100 crore or more.
The government has announced a waiver of late fees for GSTR-3B returns filed for the tax periods of July 2017 to April 2021, for taxpayers who have not filed the returns but have filed their GSTR-1 and GSTR-2A returns. The waiver is subject to certain conditions.
The GST Council has reduced tax rates on certain items, including COVID-19 related goods such as medical grade oxygen, oxygen concentrators and pulse oximeters, as well as certain other items such as hand sanitizer, temperature check equipment, and ambulances.
The GST Council has approved a proposal to make it mandatory for e-commerce operators to register themselves under GST, regardless of their turnover. The move is aimed at ensuring better compliance and preventing tax evasion.
The government has announced a new GST return filing system, which will be implemented in a phased manner from January 2020. The new system will have simplified forms and will require less manual intervention, making the return filing process more efficient and user-friendly for taxpayers.
These are some of the key suggestions made by ICAI on the draft Form GSTR-3B. It is important for the government to consider these suggestions to make the filing process more efficient and user-friendly for taxpayers.
Sure, here are some FAQs on ICAI suggestions on draft form GSTR-3B:
Form GSTR-3B is a monthly return form that businesses registered under GST need to file. It is a summary of the monthly outward and inward supplies made during the tax period, along with the tax liability and input tax credit (ITC) claimed.
The Institute of Chartered Accountants of India (ICAI) had made several suggestions on the draft form GSTR-3B, including the need to simplify the form, remove certain unnecessary details, and make the filing process more user-friendly. The ICAI also suggested that taxpayers should be allowed to file the form even if there are errors in the data.
The ICAI suggested simplifying the form to make it easier for taxpayers to file their returns, reduce the compliance burden, and avoid errors. The ICAI pointed out that the form has become more complicated over time, and that there are several unnecessary fields that need to be removed.
The ICAI's suggestions, if implemented, will benefit taxpayers by making the GSTR-3B form easier to understand and complete, reducing the compliance burden, and enabling faster and error-free filing. This will help businesses save time and effort and focus on their core operations.
Some of the ICAI's suggestions have been implemented, such as the removal of the field for reporting the HSN code for exempt supplies. However, some of the other suggestions, such as the removal of certain unnecessary fields, have not been implemented yet. The government continues to work on simplifying the GSTR-3B form and improving the overall GST compliance process.
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