GSTN issues advisory on hard-locking of auto-populated values in Form GSTR-3B

 This Tax Alert summarizes the recent advisory 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.