Taxpayers Could Gain the Ability to File Revised GST Returns From 2025

The government is looking for a significant change in the Goods and Services Tax system by considering the introduction of the option for taxpayers to file updated or revised returns. The move is designed to bring about benefits for taxpayers while simultaneously reducing litigation associated with the indirect tax regime. 

Scope of Revision

Taxpayers will have the ability to rectify various aspects of their returns, including the computation of tax. Currently, there is no provision for filing revised returns under GST, except for minor corrections in invoice details.

Legal Status

The industry has been demanding the facility for revised returns, and a petition in this regard is before the Supreme Court.

The initiative aligns with industry demands and echoes a provision already present in the income tax system. 

Ease of Filing Returns and Reduce Litigation

Allowing updated returns is expected to enhance the ease of filing returns and reduce litigation, particularly in cases where there is no intent to evade tax.

Implementation Process

The Central Board of Indirect Taxes and Customs is working on the details, which will then be reviewed by the law committee of the GST Council and subsequently by the council itself.

The facility may be introduced initially for yearly returns and later expanded to quarterly returns.

Implementation is expected to take 8-9 months post GST Council approval, requiring a significant upgrade of the GST Network.

Technology Vendor Transition

The GST Network (GSTN) will assign the task to the next technology vendor for the GST portal as the contract with the current service provider, Infosys, ends on September 30, 2024.

The new facility is anticipated to be implemented by April 2025 if the transition to the new vendor proceeds smoothly.

Importance of Timely Updates

Timely updates to GST return forms are considered crucial to reflect the changing fiscal landscape.

The proposal includes revising the annual return form to accommodate altered input tax credit reporting implemented in monthly returns since August 2022.

Expert Perspectives

Experts emphasize that the proposal would be beneficial for businesses, especially in correcting natural human errors.

They stress the importance of ensuring real-time data pickup, validation, and the ability for businesses to edit all fields in auto-populated returns.