The 57th GST Council proposed return reforms to resolve input tax credit mismatches automatically, enhancing compliance efficiency and reducing disputes.
GST Council Proposes Systemic Fix for ITC Mismatches
The 57th GST Council has proposed structural reforms to resolve mismatches in GSTR-2B and GSTR-3B returns that currently lead to disputes over eligible input tax credit (ITC). The proposal includes a direct reconciliation mechanism between supplier and recipient data to allow automatic validation of ITC claims.
The reform seeks to eliminate manual reconciliation burdens and reduce litigation arising from timing or reporting discrepancies between taxpayers. By integrating seller-side data directly into the recipient's return processing, the system will allow for real-time or near-time correction of mismatches, potentially reducing the need for departmental notices under Section 73.
For practitioners, this signals a shift toward automated compliance. Advising clients on timely return filing and data accuracy will become even more critical to ensure seamless ITC availing and minimize audit triggers.
