WHAT THE GOVT PLANS TO DO

Reduce the number of returns filed each month from three to one

Shift reconciliation of invoices from online to offline

The matching of invoices is currently done through the GSTN platform

The proposal is to do this offline at the level of buyers and sellers

This is something businesses are familiar with under the VAT system in many states

Undertake more rigorous audits and assessments of taxpayers

How it impacts business

Responsibility to ensure the vendors have uploaded the invoices would be with the purchasers

Businesses have to be more diligent in following up with vendors to ensure compliances and rectify errors on a timely basis

It could mean closer scrutiny of the vendor ecosystem and preference for larger and more compliant vendors

Another round of reconfiguration of the IT applications in line with the changes

Be ready for more detailed reconciliation. Documents would be needed at the time of assessment and audit

As the onus of disclosure is on the tax payer, audits and assessments in the initial couple of years are expected to be very rigorous

Chances of potential disputes with tax authorities are high initially