LINKING OF GSTR-1 WITH GSTR-3B AND GSTR-3B WITH GSTR-2A

As per the decision taken by the GST Council in its 39th meeting in consultation with Sh. Nandan Nilekani, outward liability as shown in GSTR-1 will be linked with outward liability to be shown in GSTR-3B and inward supplies as shown in GSTR-3B will be linked with GSTR-2A.

For this, the extract of press release of 39th GST Council Meeting is as under :

In the 39th meeting of the GST Council, held on 14.03.2020, Shri Nandan Nilekani, on behalf of Infosys, made a presentation addressing the system related issues that are being faced by the taxpayers in the GST system. He first gave the summary of the recently observed IT issues and the way forward to resolve them.

He suggested that in order to smoothen the rollout of the new return system, and to ensure a better uptake of the new return, the transition to the new return system may be made in an incremental manner. He suggested that the process may be initiated by addressing the compliance related issues first so that the problem of tax evasion and gaming of the system due to non-linking of FORM GSTR-1 and FORM GSTR-3B is addressed immediately. The journey could start with linking of the details of the statement of outward supplies in FORM GSTR-1 to the liability in FORM GSTR-3B. This would be followed by the linking of the input tax credit in FORM GSTR-3B to the details of the supplies reflected in the FORM GSTR-2A. In order to tackle evasion and preventing the gaming of the system, implementation of Aadhaar authentication and spike rules would also be initiated.

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