Input tax credit: GST council may consider changes to monthly tax payments

The GST Council may consider changes to the summary return and monthly tax payment form, GSTR-3B, at its meeting next month to examine counterfeit input tax credit claims and expedite the settlement of the original, an official said.

According to officials, the modified form will clarify the gross input tax credit (

) 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, could be held next month.

The modified form will help to check bogus ITC claims and ensure that honest taxpayers are able to avail ITC benefits in a timely manner.

“The GST Council’s Legislation Committee is looking at streamlining GSTR-3B to provide more clarity on ITC disclosure. The revised GSTR-3B is expected to be tabled at the next meeting of the Council,” the official told PTI.

GSTR-3B, which is a summary statement and monthly GST payment form, is surprisingly filed between 20th, 22nd and 24th of every month for different categories of taxpayers.

Rajat Mohan, senior partner at AMRG & Associates, says changes to the monthly tax payment form will help identify taxpayers who are claiming ineligible tax credits.

“The new form will change the gross tax credit report by banks and financial institutions, including NBFCs, companies in the oil and gas sector, extra neutral alcohol production, public transport services, healthcare and education services,” Mohan said.

Specific reporting centers of gross tax credits and delays in the distribution of tax revenue between states will also be eliminated, he added.

The council will also consider in its next meeting the report of the panel of ministers on the applicability of GST on casinos, race courses and online gaming.

The Council of Ministers unanimously decided to increase the tax rate on these services to 28 per cent, as well as to formulate a system of evaluation of these services for the purpose of levying these taxes.

Currently, casino, racing and online gaming services attract 18 percent GST. GOM will decide on the method of evaluation of services

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