The Ministry of Finance is positioned to start the pre-filled GST return forms prior to the subsequent financial year, which is anticipated to solve the problem of the bigger information mismatches directing to the tax notices, as per the senior government official.
The department is currently assessing the added expenses involved in boosting the digital infrastructure to avoid system slowdowns or crashes caused by pulling data from various databases.
The development of the pre-filled consolidated GST return forms is underway and anticipated to be completed before the next fiscal year. Addressing significant data mismatches is a major issue, leading to a surge in unnecessary demand notices. Implementing pre-filled GST returns will mitigate these mismatches and streamline business operations. Multiple templates are being utilized in this process.
An automated scrutiny module for GST returns is in place, flagging discrepancies exceeding 20 percent through data analytics and system-identified risks, triggering notices to taxpayers for further examination.
An identical pre-filled template for the Income tax return forms for a couple of years is been used by the Central Board of Direct Taxes (CBDT).
The Central Board of Indirect Taxes and Customs (CBIC) is currently evaluating the necessary technological upgrades while weighing the potential additional costs against the potential slowdown of processes.
The finance ministry must outline the technological requirements for digital infrastructure and processes, considering the potential impact on system speed and response times as automation increases. Pulling data from diverse databases and populating it involves a time-consuming process that requires processing space.
Determining the extent of this impact is crucial. To maintain optimal speed, additional infrastructure must be considered for design and internal processes. The debate revolves around determining the acceptable additional cost versus the derived benefits, the spokesperson explained.
Initially, a pilot phase will assess the functionality and time consumption of the pre-filled GST return form.
Given its impact on taxpayers’ convenience, approval from the GST Council isn’t necessary to proceed, stated the official.
