GST Council likely to consider amendment in GSTR-3B form

New Delhi: The GST Council in its meeting next week is likely to consider a proposal for making changes in the monthly tax payment form -- GSTR-3B, which would include auto-population of outward supplies from sales return and non-editable tax payment table, officials said.

The move would help curb the menace of fake billing, whereby sellers would show higher sales in GSTR-1 to enable purchasers to claim input tax credit (ITC), but report suppressed sales in GSTR-3B to lower GST liability.

Currently, GSTR-3B of a taxpayer includes auto drafted input tax credit (ITC) statements based on inward and outward B2B supplies and also red flags any mismatch between GSTR-1 and 3B.

As per the changes proposed by the Law Committee of the GST Council, there will be auto-population of values from GTSR-1 into GSTR-3B in specific rows to establish one-to-one correspondence to a large extent between rows of the two return forms, thereby providing clarity to the taxpayer and tax officers.

The change would minimize the requirement of user input in GSTR-3B and ease the GSTR-3B filing process, an official said.

The tax payment table in Form GSTR-3B will be auto-populated from other tables in the form and will be non-editable, as per the amended form recommended by the Law Committee of the Council.

Noting that amendment in Form GSTR-3B, as far as feasible, should flow from amendment in Form GSTR-1, with regard to outward liabilities, the Committee suggested that for giving more clarity to the taxpayers, separate amendment table (for liabilities) may be introduced in GSTR-3B, so that any amendment made in Form GSTR-1 gets reflected in GSTR-3B clearly.

Similarly, an amendment table may also be incorporated in GSTR-3B to show any amendment in the ITC portion, the Committee suggested.

Once the changes proposed by the Law Committee gets an in-principle approval of the GST Council, the revamped form will be put in public domain for stakeholder consultation. The GST Council in a meeting later will then approve the final form.

Currently, taxpayers file statements of outward supplies in GSTR-1 by the 11th day of the subsequent month, while taxes are paid by filing GSTR-3B between 20th, 22nd and 24th of every month for different categories of taxpayers.

Moreover, The GST department may soon issue a host of clarification on certain vexed issues in tax rates, including exemptions to assisted reproductive technology (ART) or in vitro fertilization (IVF) as well as applicability of GST on payment of honorarium to guest anchors.

A committee of tax officers from the Centre and states, referred to as the Fitment Committee, has informed the GST Council that healthcare services provided by a clinical establishment, an authorised medical practitioner or para-medics are exempt under Goods and Services Tax regime and a clarification be issued regarding GST exemptions to ART/IVFs.

GST law defines healthcare services as any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India.

It also includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma.

The ailment of infertility is treated using ART procedure such as IVF. Such services are covered under the definition of healthcare services for the purpose of above exemption notification, the fitment committee said adding a clarification may accordingly be issued by way of a circular.

The recommendations of the committee which will be placed before the GST Council meeting on June 28-29 also include a clarification on the issue of applicability of GST on payment of honorarium to the guest anchors.

The committee gives its recommendation regarding tax rates, after analysing demands from stakeholders, in every meeting of the Council.

The panel has received requests for a clarification since some of the guest anchors have requested payment of GST at the rate of 18 per cent on the honorarium paid to them for such appearances.