Headings

Recommendations

1. Roadmap for auto-generation of GSTR-3B from GSTR-1:

• Auto-population of liability from the GSTR-1 filed by the taxpayer w.e.f. 01 January 2021; and
• Auto-population of Input Tax Credit (‘ITC’) from suppliers’ GSTR-1 through GSTR-2B w.e.f. 1 January 2021 (for monthly filers) and 1 April 2021 (for quarterly filers);

1. In order to ensure auto population of ITC and liability in GSTR-3B as detailed above, GSTR-1 mandatorily required to be filed before GSTR-3B w.e.f. 01 April 2021
2. Present GSTR-1/ GSTR-3B return filing system to be extended till 31 March 2021 and the GST laws to be amended to make the GSTR-1/ GSTR-3B return filing system as the default return filing system

•  Earlier recommendation pertaining to allow filing of returns on a quarterly basis with monthly payments by taxpayers (whose Aggregate Annual Turnover (‘AT’) < INR 5 crore) is to be implemented w.e.f. 01 January 2021
• For the first 2 months of the quarter, such taxpayers have option to pay 35% of the net cash tax liability of the last quarter using an auto generated challan

(w.e.f. 01 April 2021)

• 6 digits level HSN/ SAC – for taxpayers with AT above INR 5 crores
• 4 digits level HSN/ SAC for B2B supplies – for taxpayers with AT up to INR 5 crores
• Government would have power to notify 8 digit HSN/ SAC on notified class of supplies by all taxpayers

• Levy of Compensation Cess to be extended beyond the transition period of 5 years i.e. beyond June, 2022, for such period as may be required to meet the revenue gap
• Refund to be paid/ disbursed in a validated bank account linked with the PAN and Aadhaar of the taxpayers w.e.f. 01 January 2021