Source: ET
Context:
The Central Board of Indirect Taxes and Customs (CBIC) is developing an advanced invoice management system for GST.
Objective: Stop unnecessary system-generated mismatch notices and streamline dispute resolution for taxpayers.
Key Features of the New System
- Prevention of Automatic Notices
- System will prevent auto-generation of mismatch notices triggered by minor discrepancies between GST returns.
- Currently, ~2 lakh notices are sent annually, covering nearly ₹10 lakh crore in disputes.
- Direct Correction Facility
- Taxpayers will be able to rectify mismatches directly on the portal instead of receiving formal notices.
- This includes reconciliations between various forms:
- GSTR-1: Outward supplies
- GSTR-2A/2B: Inward supplies
- GSTR-6: Input Tax Credit distribution
- GSTR-3B: Monthly return for tax payment
- Reduction in Litigation and Compliance Burden
- Currently, businesses spend considerable time responding to every mismatch notice, even if errors are minor or timing-related.
- New system will reduce trade compliance burden and cut down unnecessary litigation.
- Integration with Existing Facilities
- Existing tools like GSTR-1A (for outward invoices) and the invoice management system (for inward invoices) are optional and not fully aligned.
- The new software will offer a more harmonized, trade-friendly solution, enabling corrections during annual return preparation.
Central Board of Indirect Taxes and Customs (CBIC)
- CBIC is the apex body for administering indirect taxes in India.
- CBIC traces its roots to older boards, it’s constituted under the Central Boards of Revenue Act, 1963.
- Functions under the Department of Revenue, Ministry of Finance.
- Earlier known as Central Board of Excise and Customs (CBEC), renamed in 2018 after introduction of GST.
- Sanjay Kumar Agarwal is the present Chairperson of CBIC
