Enhanced Reporting in GSTR-1

As the deadline for GSTR-1 filings approaches, businesses are gearing up for the latest update introduced by the GST Network (GSTN) on January 1, 2024. This significant update aims to streamline the reporting of taxable outward supplies/sales made through e-commerce operators (ECOs), enhancing the accuracy and transparency of GST filings. Let’s delve into the key aspects of this update:

Introduction of New Tables:

Two new tables, 14 and 15, have been added to the GSTR-1 form to separately report sales made through ECOs. Table 14 is for suppliers to report sales made through ECOs collecting Tax Collected at Source (TCS) under Sections 52 or 9(5) of the CGST Act. Table 15 is for ECOs to report sales made through them while filing GSTR-1.

Impact on Reporting Accuracy:

Prior to this update, GSTR-1 did not have specific tables for reporting these transactions, leading to challenges in auto-populating details into GSTR-3B. With the inclusion of Tables 14 and 15, accurate auto-population of details into Table 3.1.1 in GSTR-3B for both suppliers and ECOs is facilitated.

Enhanced Reporting Mechanism:

ECOs, liable under Section 9(5) of the CGST Act, must pay tax on a reverse charge basis for various transactions facilitated through them. The introduction of separate reporting tables ensures a more precise mechanism for tracking these transactions, enabling better compliance and monitoring.

Details to be Reported:

ECOs are required to report various details such as GSTIN of supplier and recipient (where applicable), document number, date, rate, value of supplies, place of supply, IGST, CGST, SGST, and Cess values. Online sellers must maintain separate sub-ledgers in their sales register to seamlessly report details in GSTR-1, including GSTIN of ECO, Trade/Legal name, net value of supplies, and tax values.

Upcoming Amendments:

While Tables 14A and 15A for amendments to the aforementioned tables are pending update, the GSTN is expected to upgrade its portal soon to facilitate these amendments.

Streamlining Compliance:

The GST authorities and GSTN are taking meticulous steps to streamline compliance and enhance transparency through detailed GST reporting mechanisms.

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