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This Tax Alert summarizes the recent advisory[1] issued by Goods and Services Tax Network (GSTN) on hard-locking of auto populated values in GSTR-3B.
The highlights of the advisory are:
GSTN has improved the GST return filing process by providing a pre-filled GSTR-3B form with auto-populated tax liability from GSTR-1/1A/invoice furnishing facility (IFF) and input tax credit (ITC) from GSTR-2B, along with a detailed pdf report.
Taxpayers can now amend incorrect outward supplies in GSTR-1/ IFF through GSTR-1A before filing GSTR-3B and manage inward supplies for accurate ITC claims using the Invoice Management System (IMS).
Starting tentatively from January 2025, the GST Portal will restrict changes in auto-populated tax liability in pre-filled GSTR-3B to improve accuracy. Necessary changes should be made through GSTR-1A.
However, locking of auto-populated ITC in GSTR-3B will be implemented after IMS rollout, with a separate advisory to be issued post addressing IMS-related issues.
Comments
IMS serves as a tool for taxpayers to match their invoices against those issued by the suppliers, ensuring accuracy in ITC claims. While initially implemented as a recommendatory measure, in due course the Government seems to move towards making this process mandatory by introducing a feature that locks auto-populated data of ITC in GSTR-3B.
Taxpayers may examine the legality of this advisory becoming a compulsory practice, in the absence of any legal provision in this regard.