The GST Board will likely consider amending the Monthly Tax Return and Payment Form, GSTR-3B, at its meeting next month, to check for false input tax credit claims and expedite the resolution of genuine claims, an official said.
According to officials, the amended form will clarify the gross input tax credit (ITC) due to the taxpayer, the amount claimed in a given month, and the net amount remaining in the taxpayer’s ledger.
A meeting of the Goods and Services Tax (GST) Council, the highest decision-making body on GST, is scheduled to be held next month.
The amended form will help verify false ITC claims and ensure that honest taxpayers are able to take advantage of the ITC benefit in a timely manner.
“The GST Board Legal Committee is considering streamlining the GSTR-3B to further clarify disclosure of ITCs. The amended GSTR-3B should be presented to the Board at its next meeting,” the official told PTI. .
GSTR-3B, which is a monthly GST summary statement and remittance form, is filed on a staggered basis between the 20th, 22nd and 24th of each month for different classes of taxpayers.
Rajat Mohan, senior partner at AMRG & Associates, said changes to the monthly tax payment form would help identify taxpayers claiming an ineligible tax credit.
“The new form would bring changes to the reporting of gross tax credit by financial institutions, including banks and NBFCs, oil and gas companies, extra neutral alcohol manufacturing, public transport services , health and education services,” Mohan said.
Accurate reporting of the gross tax credit would also help smooth out delays in allocating tax revenue between the Center and the states, he added.
At its next meeting, the Council will also consider the report of the group of ministers on the applicability of the GST to casinos, racetracks and online gambling.
The group of Ministers of State has unanimously decided to increase the tax rate on these services to 28%, in addition to developing a method of assessing these services for the purpose of collecting this tax.
Currently, casino, horse racing and online gaming services are subject to 18% GST. The GoM would decide on the method of evaluating the services.
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