The Finance Ministry has notified the GSTR-1A form, which will give taxpayers the option to change the sales return form.
Ministry of Finance: The Finance Ministry has notified the GSTR-1A form, which will give taxpayers the option to change the sales return form. The GST Council last month recommended a new optional facility through the GSTR-1A form to allow taxpayers to change details and/or declare additional details in the GSTR-1 form for a tax period. However, GSTR-1A has to be filed before filing the return in GSTR-3B for the said tax period.
The Finance Ministry notified the GSTR-1A form on July 10. Rajat Mohan, executive director of business advice company Moore Singhi, said that the Central Board of Indirect Taxes and Customs (CBIC) has significantly enhanced the GST compliance framework with the optional facility of GSTR-1A form. He said, ‘By providing the facility of timely correction, Form GSTR-1A ensures that the correct tax liability is automatically filled in Form GSTR-3B, which will reduce errors and promote a streamlined compliance process.’
Abhishek Jain, Head and Partner, Indirect Tax, KPMG, said that making provision to allow correction in GSTR-1 is a welcome step. This will help businesses to prevent unwanted disputes (especially inadvertent errors) on regular matching between GSTR-1 and GSTR-3B. Taxpayers with annual turnover up to Rs 5 crore can file GSTR-1 within the 13th day of the end of the quarter, while GSTR-3B is filed between the 22nd and 24th day of the next month.
