GST Network starts providing auto-drafted input tax credit statement to taxpayers

GST Network starts providing auto-drafted input tax credit statement to taxpayers

Goods and Service Tax Network (GSTN), the information technology backbone provider for GST introduced new return filing form which has auto-populated input tax credit.

The new form – GSTR 2B – has been activated for July 2020, and will be available for each month on the 12th day of the succeeding month.

“It is expected that GSTR-2B will help in reduction in time taken for preparing return, minimising errors, assist reconciliation & simplify compliance relating to filing of returns,” GSTN said in a statement Saturday.

The GSTR-2B will contain information on import of goods from the ICEGATE system, will have summary statement on all the ITC available and non-available under each section and have document level details of all invoices, credit notes, debit notes etc.

GSTR-2B will be generated for every registered person on the basis of information furnished by his suppliers in their respective GSTR-1, GSTR-5 (non resident taxable person) and GSTR-6 (input service distributor).

However, GSTN has clarified that GSTR-2B for the month of July has been made available on the common portal on trial basis, and feedback has been sought from taxpayers.

Abhishek Jain, Tax Partner, EY said, “There were discussions on these linkages from a long time and were awaited by both industry and Government. These linkages would definitely aid the Government in checking tax evasion and also help industry in verifying the credits proposed to be availed by them”.

“Auto-population of ITC based on new report GSTR-2B may impact the working capital of businesses to a great extent. Businesses would appreciate it if instead of making numerous changes on a piecemeal basis, tax authorities come with a list of comprehensive changes in one go finalized after suitable trade participation,” said Rajat Mohan, senior partner at AMRG Associates.

Meanwhile, two new tables have been inserted in GSTR-2A for displaying details of import of goods from overseas and inward supplies made from special economic zones (SEZ) units or developers.

The insertion will enable taxpayers to self-reconcile the taxes paid and the taxes reflected in the system online. taxpayers can view their bill of entries data which is received by the GST System (GSTN) from ICEGATE System (Customs). This has been enabled on trial basis for feedback.

Source: Economic-Times.

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