The Central Board of Indirect Taxes and Customs has invited public suggestions on proposed changes to GST returns, including amendments to tax liabilities, input tax credit and GSTR-3B reporting.The proposed reforms aim to reduce GST mismatches and tax notices, with implementation targeted for April 2027. Taxpayers and professionals can submit feedback through MyGov until November 30, 2026.
The Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, has invited suggestions from taxpayers, Chartered Accountants, tax practitioners, industry associations and other stakeholders on a proposed alternative mechanism for correcting tax liabilities and Input Tax Credit (ITC) in GST returns.
The public consultation is being conducted through the government's MyGov portal from November 1 to November 30, 2026.
The proposal follows recommendations made during the 57th GST Council meeting held on October 8, 2026, which emphasised simplifying GST return filing, improving the accuracy of tax reporting and reducing notices arising from mismatches.
Proposed Changes in GST Returns
Under the existing system, taxpayers can edit certain auto-populated tax liability and ITC details in GSTR-3B before filing their returns.
However, these changes sometimes create discrepancies between the outward supplies reported in GSTR-1 and the tax liability declared in GSTR-3B.
Similarly, differences between ITC available in GSTR-2B and ITC claimed in GSTR-3B may result in system-generated intimations or departmental notices.
To address these issues, the government has proposed a revised mechanism requiring corrections to be made primarily through the relevant source statements and reconciliation facilities rather than by directly altering auto-populated GSTR-3B figures.
Major GST Return Reforms Under Consideration
1. Changes to GSTR-1 and GSTR-1A
The proposed amendments would enhance GSTR-1, GSTR-1A and the Invoice Furnishing Facility to improve reconciliation with GSTR-3B.
The scope of GSTR-1A may also be expanded to permit corrections relating to earlier tax periods and recipient GSTIN details, subject to applicable statutory time limits.
2. New Mechanism for Correcting ITC
The Invoice Management System (IMS), Electronic Credit Reversal and Reclaim Statement, and additional electronic statements would be used to manage ITC adjustments and reconciliations.
A proposed FORM GST PMT-10 would facilitate correction of certain excess permanent ITC reversals reported in earlier periods.
3. Reverse Charge Mechanism Reporting
An electronic statement for tax paid under the Reverse Charge Mechanism and corresponding ITC claims has been proposed to facilitate reconciliation of RCM liabilities and credits.
4. Changes to GST DRC-03
The proposal also includes modifications to FORM GST DRC-03 to capture underlying invoice details where tax has already been paid, helping avoid duplication of tax liability when corresponding invoices are subsequently reported.
Implementation Proposed from April 2027
The GST Council has recommended introducing the alternative amendment mechanism from the April 2027 return period, subject to finalisation of the necessary amendments.
The consultation documents include proposed changes to the CGST Rules, GST return forms and a draft circular explaining the correct reporting of ITC and reversals.
Opportunity for Taxpayers and Professionals
The government has invited stakeholders to examine the proposals and submit suggestions concerning practical implementation difficulties, reconciliation procedures and compliance requirements.
The feedback may help identify situations where taxpayers legitimately need to correct returns due to clerical errors, supplier amendments, timing differences or other genuine reporting issues.
The last date for submitting suggestions is November 30, 2026.
The proposed changes have not yet been finalised, and taxpayers should continue following the presently applicable GST return rules until the revised framework is officially notified.
Source: CBIC, Ministry of Finance, public consultation hosted on MyGov, November 2026.
Source: CA Sansaar