The finance ministry aims to introduce pre-filled Goods and Services Tax (GST) return forms before the upcoming fiscal year to address the challenge of significant data mismatches resulting in tax notices. This initiative seeks to enhance the ease of doing business and prevent unnecessary demand notices. The pre-filled consolidated GST return form is currently under development, utilizing multiple templates. The automated scrutiny module, which triggers notices for data mismatches exceeding 20 percent, will benefit from this enhancement.

Technological Analysis for Seamless Implementation

The Central Board of Indirect Taxes and Customs (CBIC) is assessing the technological requirements and potential upgrades, considering the additional costs and system impact. The analysis aims to determine the balance between implementing the pre-filled form without compromising system efficiency and response time. The discussion involves defining the technological asks for digital infrastructure and evaluating the acceptable additional cost compared to the benefits.

Pilot Testing and Council Approval

The plan involves conducting a pilot to test the functionality and efficiency of the pre-filled GST return form. While seeking to enhance taxpayer convenience, the initiative does not require GST Council approval to proceed. The move aims to streamline the GST return process, reduce mismatches, and contribute to a more efficient and business-friendly tax environment.