Companies must rapidly get ready for the brand new bill administration system underneath the products and providers tax that can be launched from October 1. The brand new performance will assist taxpayers effectively deal with bill corrections and amendments with their suppliers by the GST Community portal.
“This can even facilitate taxpayer in matching of their information/invoices vis a vis issued by their suppliers for availing the proper Enter Tax Credit score (ITC) and shall permit the recipient taxpayers to both settle for or reject an bill or to maintain it pending within the system, which could be availed later,” stated the GSTN in a latest advisory, including that this can be a serious enhancement within the ITC ecosystem of GST.
“Now, solely the accepted invoices by the recipients would change into a part of their GSTR-2B as their eligible ITC. Subsequently Bill Administration System (IMS) will present the taxpayers a chance to overview the genuineness and authenticity of the acquired invoices,” it stated.
Specialists consider that this may deliver extra effectivity and transparency in compliance procedures for taxpayers underneath GST. “The launch of the IMS, coupled with the forthcoming Enter Service Distributor integration, unequivocally demonstrates the federal government’s dedication to advancing GST 2.0. This transformative enhancement is about to revolutionise the GST framework by streamlining compliance and optimizing the declare course of for ITC,” stated Saurabh Agarwal, Tax Companion, EY.
Whereas GSTN has lengthy advocated for a system of bill matching since GST’s inception, latest amendments to the CGST Act have led to the omission of enabling provisions. Nonetheless, superior technological options can be important for companies to adeptly handle these essential transitions, he underlined.
A observe by PwC additionally highlighted that contemplating October 1, 2024 because the implementation date, firms must revisit their compliance processes and equipment up their programs to rapidly adhere to this new requirement. “The IMS is predicted to facilitate transparency between recipients and suppliers and streamline the reconciliation of ITC, which has been a difficult course of for the reason that introduction of GST,” it stated, including that the sensible advantages of the system to taxpayers will change into clearer as it’s carried out.
