CBIC has released a 93-page consultation paper proposing an alternate mechanism for liability amendments and ITC adjustments.
Key proposals include:
🔹 GSTR-1/1A Improvements: Better classification of sales and supplies to ensure correct details are automatically reflected in GSTR-3B.
🔹 More Flexibility in GSTR-1A: Businesses can correct details of earlier periods and fix incorrect recipient GSTINs before filing GSTR-3B.
🔹 No Direct Changes to Tax Liability in GSTR-3B: Any mistakes in sales details must be corrected through GSTR-1 or GSTR-1A.
🔹 DRC-03 Invoice Linking: Linking tax payments with specific invoices to avoid paying tax twice and help buyers claim eligible ITC.
🔹 Separate RCM Statement (PMT-02B): A separate record to track tax paid under RCM and the ITC claimed against it.
🔹 ITC Reversal and Reclaim Statement (PMT-02A): ITC can be reclaimed only to the extent allowed, with a separate section in GSTR-3B for reporting these details.
🔹 PMT-10 for Excess ITC Reversal: A facility to correct cases where more ITC was permanently reversed than required in earlier periods.
🔹 Improved ISD Reporting: Clearer reporting of ineligible ITC without unnecessarily reducing the eligible ITC available to businesses.
🔹 Improved GSTR-2B: More accurate ITC details to make checking and matching purchase records easier.
🔹 Easier Discrepancy Reporting: PMT-04 can now also be used to report differences or errors in the new ITC statements.
Have suggestions? Now is the time to share them.
📅 Deadline: 30 November 2026.
📍 Submit your feedback at
https://innovateindia.mygov.in/ministry/ministry-of-finance/
