The GST Network, the IT support of the GST regime, is working on modifying and improving the current returns and will soon announce an advanced version of the existing system.
They are going to introduce a new form GSTR 2B, which like the GSTR 2A will have details of purchases of the company or business with added information on input tax credits. The existing GSTR 1 form, which captures sales-related information, will be more detailed. The Form GSTR 3B, which gives the tax computation, will be auto-populated.
New features likely to be added in the new improved version of the existing return system include matching tool for comparison of GSTR 2A with purchase register, communication channel between buyer and seller, and an improved comparison table of tax liability and input tax credit (ITC) after incorporating ITC on IGST paid on imports.
Also, delinking of Credit Note with the particular invoice is in the list. So, it will help a lot.
The GSTN is also looking to reduce error on part of taxpayers by improving the process of linking GSTR1 with GSTR3B and GSTR2A data with GSTR3B for flow of ITC.
E-invoicing under GST – Starting from 1-10-20
Right now, transactions between buyer and seller are not authenticated by the government.
Under the new system, business transactions will be authenticated electronically by GSTN maintained by the government. The system would enable complete trail of B2B transactions, eliminate fake invoices, control over fictitious ITC claims, real time data access by tax authorities and ultimately, the reduction of tax evasion significantly.
- Previously it was plan to introduce this system for the business with turnover of Rs. 100 Crore
- But now, as per new talk, it may start with business which turnover of Rs. 500 Crores.
Lets See and wait, until something concrete came.