Govt may consider alteration of the monthly tax form
NEW DELHI: The Goods and Services Tax (GST) Council is likely to consider modification in the summary return and monthly tax payment form, GSTR-3B, in its meeting next month, to check fake input tax credit claims and expedite settlement of genuine ones, an official said.
The modified form will provide clarity with regard to gross input tax credit (ITC) due to the taxpayer, the amount claimed in a particular month and the net amount left in the taxpayer’s ledger, the official said.
A meeting of the GST Council, the highest decision making body in the GST matter, is likely to be held next month.
The modified form will help check bogus ITC claims and ensure that honest taxpayers are able to avail the ITC benefit.
“The law committee of the GST Council is looking at streamlining the GSTR-3B so that there is further clarity on ITC disclosure. The modified GSTR-3B is expected to be put up before the Council in its next meeting,” the official said.
GSTR-3B, which is a summary statement and monthly GST payment form, is filed in staggered manner between 20th, 22nd and 24th of every month for different categories of taxpayers.
AMRG & Associates Senior Partner Rajat Mohan said the changes in monthly tax payment form would help identify taxpayers who are claiming ineligible tax credit.
“The new form would bring in changes in the reporting of gross tax credit by financial institutions, including banks and NBFCs, companies in the oil and gas sector, extra neutral alcohol manufacturing, public transportation services, healthcare and educational services,” Mohan said.
Precise reporting of gross tax credit would also iron out the delays in the distribution of tax revenues between the Centre and states, he said.
The council will also consider the report of the panel of ministers on applicability of GST on casinos, race courses, and online gaming. The group of ministers unanimously decided to hike the tax rate on these services to 28%, and also worked out a method of valuing these services for the purpose of levying this tax.