The Finance Ministry has notified the GSTR-1A form. This will give taxpayers the option to amend the outward supply or sales return form. The GST Council last month recommended providing a new optional facility through the GSTR-1A form to allow taxpayers to modify details and/or declare additional details in the GSTR-1 form for the tax period. According to the news of Bhasha, however, GSTR-1A will have to be filed before filing returns in GSTR-3B for the said tax period.
Streamlined compliance process will be strengthened
According to the news, the Finance Ministry notified the GSTR-1A form on July 10. Rajat Mohan, Executive Director of business consultancy firm 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 that 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 errors and promoting a streamlined compliance process.
Will help prevent errors
Abhishek Jain, Head of Indirect Tax and Partner, KPMG, said that making a provision to allow correction in GSTR-1 is a welcome step. This will help businesses 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 last quarter, while GSTR-3B is filed between 22nd and 24th day of the following month.
