Changes in GSTN Return filing system

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Changes in GSTN Return filing system

The government, in its continuous efforts to improve the GSTN and return filing system, has come up with the new GSTN return filing system. The primary objective behind this is to make the GSTN better and easy to use with the help of technology.

What kind of changes are expected?

GSTN will now focus on:

  • Development of new return filing system
  • Improving the user interface
  • Business Intelligence and analysis

The changes are expected in the following areas that will make it easier for taxpayers:

New Return filing system

The new return filing system will be equipped to avoid frauds/errors by providing the following information directly to the users.

  • Details of mismatches between figures reported in GSTR-1 & GSTR-3B.
  • Details of mismatches between figures reported GSTR-3B and that computed by the system in GSTR-2A.
  • Information about taxpayers who have generated e-way bill but not filed tax returns

Improving the user interface

The government acknowledges that improving the user interface is an on-going process. Hence, regular feedback from users will help the system to get better, easier and equipped. Currently, the following initiatives are taken

  • To avoid errors by taxpayers, a questionnaire for filing GSTR-3B will be issued
  • To avoid deposit of Cash in wrong Head by the taxpayers, an option to generate pre-populated Challan by the system will be available
  • For taxpayers with Nil returns, one click Nil return filing will be introduced.
  • The taxpayer will be informed about the utilisation of ITC for discharging tax liability.
  • Contextual help for GST transactions like Registration, Returns, Payment, etc.

Business Intelligence (BI) and analysis

GSTN has initiated the work on BI & Analytics tool. Various areas covered under this include:

  • Persona-based Analysis,
  • Predictive Analysis,
  • Fraud/Anomaly Detection,
  • Statistical Scoring,
  • 360-degree view of taxpayers,
  • Circular Trading & Network Analysis, etc.

Information sharing with Tax Authorities

BI and analytics tool is also helping the tax authorities by sharing relevant information to them so that they can take appropriate action. Following reports are already available and shared with tax authorities for their action:

  • Tax Comparison of GSTR-1 & GSTR-3B for liability analysis,
  • GSTR-2A & GSTR-3B for comparison of ITC being claimed by taxpayers, and
  • Analysis regarding taxpayers who have generated e-way bill but not filed tax returns

The above was announced by the government by a press release issued on 8th February 2019. Press Information Bureau


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About CA Ankita Khetan 164 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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