Revised GST Returns may be Implemented by April 2025: Know what to Expect

The government is contemplating the introduction of a revised GST return filing option, potentially by April 2025, which aims to benefit taxpayers by allowing rectification of returns and reducing litigation, pending approval from the GST Council and a significant upgrade of the GST Network
Revised -GST Returns - Implemented - April 2025-TAXSCAN

The Goods and Services Tax Network may allow you to file a revised Goods and Services Tax Return (GSTR) by April 2025, according to sources.

The government is contemplating the introduction of a revised filing option for goods and services tax (GST) returns. This move, if implemented, is poised to offer substantial benefits to taxpayers while simultaneously reducing litigation within the indirect tax framework. Currently, taxpayers face limitations in revising GST returns, with only minor corrections allowed for invoice details on the portal.

The proposed revision would empower taxpayers to rectify their returns, encompassing the computation of taxes. A senior official shared with ET, “We are looking at allowing updated returns under GST.” Industry stakeholders have long advocated for this provision, with a petition on the matter already before the Supreme Court.

The absence of a revision option has been a longstanding challenge, and the potential introduction of this facility aligns with the existing practice under income tax regulations. The envisaged change is expected to streamline the return filing process, providing relief in cases where miscalculations or omissions were unintentional.

The Central Board of Indirect Taxes and Customs is currently working on the specifics, which will subsequently undergo scrutiny by the law committee of the GST Council and then by the council itself. Initially, the facility may be implemented for yearly returns, with plans to extend it to quarterly filings. The entire process, post-GST Council approval, is estimated to take 8-9 months, requiring a substantial upgrade to the GST Network.

The GST Network (GSTN) will engage a new technology vendor for the GST portal, as the contract with the current service provider, Infosys, concludes on September 30, 2024. An official from GSTN expressed optimism, stating, “If everything goes smoothly, we will be able to implement the new facility by April 2025.”

Experts in the field highlight the importance of timely updates to GST return forms, emphasizing the need for reflecting changes in the fiscal landscape. The proposed revision would not only address natural human errors but also align with the robust compliance framework of GST. Businesses could benefit from the option of revising returns, particularly when coupled with pre-filled returns.

However, one expert emphasized the necessity of real-time data processing, validation, and the ability for businesses to edit all fields in auto-populated returns. Additionally, tax payment computations should be based on data populated by businesses to ensure accuracy and reliability in the revised filing process.

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