GST return filing changes: New thresholds and liability rules to take effect from September

Starting this September, taxpayers in India may need to adjust their GST return filing practices due to upcoming changes that could affect compliance and financial reporting. These updates include revised reporting thresholds and liability adjustments, which will impact all taxpayers, as per a report by Hindustan Times.

According to a social media post by chartered accountant Anupam Sharma, beginning September, taxpayers must report any supply valued above ₹1 lakh in GSTR-1’s Table B2CL. This update aligns with Notification No. 12/2024, issued on July 10, 2024. As per the report, these changes aim to improve the accuracy of reporting and enhance the transparency of high-value transactions. 

Additionally, taxpayers can now report negative liability in GSTR-3B’s Table No 3, which will automatically carry forward to the following month's return.

Another critical update effective September 1 is that GSTR-1 or IFF filings will be blocked if taxpayers fail to add and validate their bank account details in their GST registration. Sharma emphasised, “If you haven't added and validated your bank account details in your GST registration, your GSTR-1 /IFF will be blocked," as quoted by Hindustan Times.

These updates coincide with a 10 percent increase in Gross GST collections in August, reaching approximately ₹1.75 lakh crore, indicating higher domestic consumption. Government data shows that GST revenues from domestic transactions grew by 9.2 percent to about ₹1.25 lakh crore, while revenues from imports rose by 12.1 percent to ₹49,976 crore. For comparison, July’s gross GST mop-up was ₹1.82 lakh crore, while August 2023 saw collections of ₹1.59 lakh crore, as per Hindustan Times.

Economic experts cautioned when interpreting the month-on-month growth figures, citing that these do not fully capture the positive trends in both direct and indirect tax collections. 

Manoranjan Sharma, Chief Economist at Informerics Ratings, emphasised that while August’s numbers show a sequential decline, GST collections have exhibited strong growth since the tax’s introduction. Sharma noted that maintaining a high growth rate on a larger base is challenging and stressed the importance of considering historical data for a comprehensive analysis, as per ANI.

For 2024, GST collections totalled ₹9.13 lakh crore so far, representing a 10.1 percent increase compared to ₹8.29 lakh crore during the same period in 2023.