20-April-2024
Taxation
 
GSTR 1 and 3B to be linked to determine input tax credit and liability
08-Aug-2020

In an effort to plug goods and services tax (GST) evasion and frauds and ease compliance, the existing GST return filing system is being enhanced to have an in-built invoice matching system to determine input tax credit and liability. The returns will be auto-populated to minimize errors, ease reconciliation and simplify compliance. The group of ministers (GoM) on Information Technology (IT) led by Bihar deputy chief minister Sushil Kumar Modi took stock of the preparedness and the timelines in a meeting held on Friday. The load handling capacity of GST Network (GSTN) has also been enhanced to 300,000 taxpayers at one point of time as against 150,000 taxpayers earlier to avoid glitches during peak hours. A dedicated team of 60 tech persons has been set up to expeditiously deliver functional changes to the GST System under ‘Returns Enhancement and Advancement Project’ (REAP), which started in April. Being developed as an alternative to the earlier proposed simplified return system that was put in abeyance in March, the new approach revolves around advancing and enhancing the existing return filing system to ensure ease of taxpayers. It is divided in five teams and various components are being developed.

News Source:- https://www.business-standard.com/article/economy-policy/gstr-1-and-3b-to-be-linked-to-determine-liability-and-input-tax-credit-120080701909_1.html