GST return form changes open for public feedback from November 1, implementation planned for 2027

Businesses will be able to submit suggestions on proposed changes to monthly Goods and Services Tax (GST) return forms from November 1, with the consultation process remaining open until November 30, a senior Finance Ministry official said on Thursday.

The amended forms are expected to come into effect from April 1, 2027, following the public consultation process.

Gaurav Singh, Commissioner in the GST Policy Wing of the Central Board of Indirect Taxes and Customs (CBIC), said the proposed changes would be published on the MyGov portal to gather feedback from businesses and other stakeholders.

The initiative follows decisions taken at the 57th meeting of the GST Council, comprising finance ministers from the Centre and states, which approved an alternative mechanism to amend tax liabilities and input tax credit (ITC) in GST returns. The changes are intended to minimise discrepancies, improve reconciliation and reduce notices and intimations issued to taxpayers.

Revised forms aim to improve GST reconciliation

The GST Council approved enhancements to Forms GSTR-1, GSTR-1A and the Invoice Furnishing Facility (IFF). The proposed changes are intended to improve reconciliation between the information furnished through these forms and the details reported in GSTR-3B, the monthly return used for tax payments.

The alternative mechanism for amending liabilities and ITC is expected to help address mismatches in reported information and reduce the need for tax authorities to issue notices or intimations to businesses.

Singh said the notifications and circulars relating to decisions taken at the GST Council's 57th meeting, held on October 8, had been vetted by the Law Department. These documents would be placed in the public domain on Friday.

Government looks to streamline GST audits

Alongside changes to return forms, the CBIC is also looking at ways to streamline the GST audit process and make it less burdensome for taxpayers.

Singh said the department needed to review the existing audit framework to ensure that the process did not result in harassment of businesses.

"With regard to audit, we need to have a look," he said, stressing that the process should be designed so that taxpayers face "no harassment".

At present, businesses operating across multiple states can face separate audits by GST authorities in each of those states. Reviewing the process could help address the compliance burden arising from multiple audits.

Resolving ITC issues key to further GST reforms

Singh said resolving integrity issues in the input tax credit chain would provide fresh momentum to further reforms in the indirect tax system.

ITC allows businesses to claim credit for GST paid on eligible purchases against their tax liabilities. Discrepancies in the credit chain can lead to mismatches between returns, additional scrutiny and notices from tax authorities.

The proposed changes to GST return forms are aimed at improving reconciliation and reducing such discrepancies. The public consultation beginning November 1 will give businesses an opportunity to flag operational difficulties and suggest improvements before the revised forms become applicable from April 1, 2027.