Finance Ministry notifies GSTR-1A for revision of outward supply form

Finance Ministry notifies GSTR-1A for revision of outward supply form

The image has been used for representational purpose only.

Image used for representational purpose only. | Photo Credit: Getty Images/iStockphoto

The Finance Ministry has notified the GSTR-1A form, which will give taxpayers the option to make amendments in the outward supplies or sales return form.

Also read: GST revenue growth hits three-year low in June; no official statement

Last month, the GST Council had recommended providing a new optional facility through Form GSTR-1A to allow taxpayers to revise details and/or declare additional details in Form GSTR-1 for a tax period.

However, GSTR-1A needs 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.

Moore Singhi Executive Director Rajat Mohan 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.

Also read: Moving forward: On GST and reform

He said, “By providing the facility of timely correction, FORM GSTR-1A ensures that the correct tax liability is auto-populated in FORM GSTR-3B, thereby reducing manual errors and leading to a streamlined compliance process.”

Mr. Mohan said this amendment not only reduces the risk of penalty and interest on account of incorrect filing but also significantly reduces the compliance burden, which underlines CBIC’s commitment towards a more responsive and taxpayer-friendly GST regime.

Abhishek Jain, Head & Partner, Indirect Tax, KPMG, said the provision to allow rectification in GSTR-1 is a welcome move and will help businesses prevent unwanted disputes (especially inadvertent errors) arising on routine matching between GSTR-1 and GSTR-3B.

“Further, the prescribed methodology should not significantly impact the input tax credit reconciliation process for businesses,” Jain added.

This will facilitate the taxpayer to add any details of supplies of the current tax period which have been missed while reporting in FORM GSTR-1 of the said tax period or to modify any details already declared in GSTR-1 of the current tax period (for quarterly taxpayers, including details declared in Invoice Furnishing Facility (IFF) for the first and second month of the quarter, if any), so as to ensure that the correct liability is auto-populated in GSTR-3B.

Currently, GST taxpayers file outward supply return GSTR-1 by the 11th day of the following month, while GSTR-3B is filed in a phased manner between 20th-24th day of the following month.

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 can be filed between the 22nd and 24th day of the following month.

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