The GST Council has proposed major changes to GSTR-1, GSTR-1A and GSTR-3B from April 2027, allowing improved reconciliation and correction of tax liabilities and Input Tax Credit (ITC) mismatches. The Finance Ministry will invite public feedback on the revised return forms from 1 to 30 November 2026 before finalising the proposed reforms.
The Central Government is planning significant reforms to the GST return filing system from April 2027, introducing improved mechanisms for correcting tax liabilities and Input Tax Credit (ITC) mismatches in GSTR-1, GSTR-1A and GSTR-3B.
The proposed changes follow recommendations made during the 57th GST Council meeting held on 8 October 2026, aimed at simplifying return filing, improving accuracy and reducing unnecessary tax notices arising from differences between GST returns.
Under the proposed framework, GSTR-1, GSTR-1A and the Invoice Furnishing Facility (IFF) will be enhanced to ensure better reconciliation with GSTR-3B. A mechanism for correcting tax liabilities and ITC reporting in GSTR-3B is also proposed, allowing adjustments to align with GSTR-1 and GSTR-2B data.
The reforms also include an electronic statement for reverse charge tax payments and related ITC claims, improved tracking of ITC reversals and reclaims, and invoice-level reporting in Form GST DRC-03.
Public Consultation From 1 November 2026
CBIC Commissioner (GST Policy Wing) Gaurav Singh stated that the revised GST return forms will be placed on the MyGov portal on 1 November 2026, inviting feedback from taxpayers, businesses and other stakeholders until 30 November 2026.
The proposed changes are intended to reduce return mismatches, minimise system-generated notices and simplify GST compliance.
The revised mechanism is proposed to apply from the April 2027 return period, subject to final approval and necessary notifications following the consultation process.
Source: CA Sansaar