BIG UPDATE IN GST RETURN FOR TAXPAYERS | GSTR3B FILING NEW CHANGE FROM OCTOBER 2024

Summary

This video provides an important advisory for GST taxpayers regarding the new Bill-to-Bill matching system (IMS) for GSTR 3B filings starting from November 1, 2024. It explains the process of accepting, rejecting, or placing invoices on hold within IMS, and how any mistakes can be corrected before the GSTR 3B filing deadline. The video highlights how to reconcile errors, reverse actions, and recompute GSTR 2B to ensure accurate ITC and output liability before submitting the return. The key takeaway is the importance of reviewing IMS actions before filing to avoid complications.

Takeaways

• 😀 The GST filing for October 2024 is due by November 20, 2024, and it includes changes to the Invoice Management System (IMS).
• 😀 The Bill-to-Bill Matching System (IMS) is now live as of November 1, 2024, requiring taxpayers to manage invoice actions carefully before GSTR-3B filing.
• 😀 There are three possible actions for invoices in IMS: Accept, Reject, or Pending.
• 😀 Accepted invoices will automatically grant Input Tax Credit (ITC).
• 😀 Rejected invoices will not be eligible for ITC, and no credit will be provided.
• 😀 Pending invoices will not result in immediate ITC, but the credit will be carried forward to the next month.
• 😀 If a mistake is made in any action (e.g., rejecting an invoice that should have been accepted), it can be corrected before filing the GSTR-3B.
• 😀 Before GSTR-3B filing, you can reverse a rejected invoice by changing its status to 'Accept' in IMS and re-computing GSTR-2B.
• 😀 Once GSTR-3B is filed, no changes can be made to the IMS actions or the invoices in the return.
• 😀 The government has issued a new advisory to guide taxpayers on how to rectify mistakes made in the initial phase of IMS implementation.
• 😀 It’s important to review your invoices and ensure correct actions (Accept/Reject/Pending) are taken in IMS well before GSTR-3B filing to avoid errors and complications.

Q & A

What is the new change in GST filing for October 2024?

The new change is related to the implementation of the Invoice Matching System (IMS) for GSTR-3B filing. Starting November 1, 2024, the government has introduced a system where invoices are matched in real-time to calculate Input Tax Credit (ITC), and taxpayers need to carefully manage invoice actions like accepting, rejecting, or pending invoices.

What actions can be taken on invoices in the IMS?

In the IMS, taxpayers can take three actions on invoices: accept, reject, or pend. If an invoice is accepted, ITC will be granted. If rejected, no ITC will be allowed. If pending, the ITC will be carried forward to the next month.

What happens if I make a mistake while rejecting an invoice in IMS?

If you mistakenly reject an invoice in IMS, you can reverse the action before filing GSTR-3B. The invoice can be re-accepted, and the ITC will be reflected in GSTR-2B, allowing you to file the return with the correct details.

Can I make corrections to my invoice actions after filing GSTR-3B?

No, corrections cannot be made after filing GSTR-3B. Any changes, such as reversing a rejection or modifying an action, must be done before filing the return.

What is the purpose of the GSTR-2B statement in relation to IMS?

GSTR-2B is the auto-populated statement of ITC based on the invoice matching done in the IMS. When invoices are accepted in IMS, their details are automatically transferred to GSTR-2B, which then feeds into the GSTR-3B return for ITC claims.

How can I correct mistakes in the ITC details if they are auto-populated incorrectly in GSTR-2B?

If incorrect ITC details are auto-populated in GSTR-2B due to errors in IMS, you can edit and correct these details **before** filing GSTR-3B. Once the GSTR-3B is filed, no further corrections can be made.

What should I do before taking action on an invoice in IMS?

Before taking any action (accept, reject, or pend) in IMS, it’s crucial to first check your books of accounts. The action you take should align with the actual details in your records to avoid errors.

What happens if I reject an invoice but haven't filed GSTR-3B yet?

If you reject an invoice but haven’t filed GSTR-3B yet, you can still correct the mistake by reversing the action before filing. You can then re-accept the invoice and re-compute GSTR-2B to reflect the correct ITC.

What should be done if I am unable to resolve mistakes in IMS before filing GSTR-3B?

It’s important to resolve any errors in IMS before filing GSTR-3B. If mistakes are not corrected in time, they may result in incorrect ITC claims and output tax liabilities, leading to potential penalties or discrepancies.

How does the government advise taxpayers to handle errors during the initial phase of IMS implementation?

The government advises taxpayers to be extra cautious during the initial phase of IMS implementation. In case of inadvertent mistakes, they can edit the incorrect ITC details in GSTR-2B before filing GSTR-3B. This ensures accurate ITC claims and the correct output tax liability.