IMPLICATIONS OF THE PROPOSED COMPREHENSIVE CHANGES IN FORM GSTR-3B ON TAX COMPLIANCE

Abstract

Tax compliance through filing of GST returns is a critical process because it authenticates tax payments, qualifies for input tax credits and ensures timely tax refunds. For this purpose, the Government has introduced various forms under GST law, including FORM GSTR-3B[1]. It is a summary return that was initially introduced as a temporary return to collect the tax amount from the taxpayer. However, it is designated as a default return on the advice of the GST Council. Considering the shortcomings of the existing GSTR-3B, discussions on comprehensive changes in Form GSTR-3B were held in the 47th Meeting of the GST Council on June 28 and 29, 2022, and the concept paper on comprehensive changes to Form GSTR-3B is published for public review to solicit views, comments, and suggestions2 . This research paper is an attempt to review the proposed changes in Form GSTR-3B, gauge their implications on tax compliance by the taxpayers and propose measures to strengthen GST compliance.