The Goods and Services Tax Network (GSTN) has introduced two new e-invoicing categories to enable businesses to report self-invoices for specified transactions under the reverse charge mechanism (RCM). According to a GSTN advisory dated October 16, the new categories — RCM-DOM for specified domestic supplies from unregistered persons and RCM-IMP for imports of services — will allow eligible businesses to generate Invoice Reference Numbers (IRNs) for self-invoices through authorised Invoice Registration Portals (IRPs). The facility is available for testing on all six authorised e-invoice portals, with the production rollout date yet to be announced. As per Business Standard, the move follows a recommendation made at the 57th GST Council meeting and will extend e-invoicing beyond the conventional framework.
The simplified GST registration facility for small e-commerce sellers recommended by the 57th GST Council meeting will be enabled from November 1, a senior finance ministry official confirmed. Speaking on the sidelines of an event organised by the Associated Chambers of Commerce and Industry of India (Assocham), the official said the system changes required to start the new registration route were ready and the facility would go live on the GST portal from the beginning of next month. The Council had proposed a simplified, optional registration mechanism under a new Rule 14B of the Central Goods and Services Tax (CGST) Rules, 2017. Under this route, small sellers of goods who supply exclusively through electronic commerce operators (ECOs) can register in other states by declaring the warehouse of the e-commerce platform as their principal place of business, without needing to set up their own office or shop in those states.
The Council has given in-principle approval to a new return filing system for businesses that make only business-to-consumer (B2C) supplies and have an annual turnover below ₹5 crore. Eligible traders would file returns once a year and pay tax quarterly, cutting their compliance work significantly. Small traders with turnover up to ₹5 crore will also avoid late fees if they file their returns within the same month they are due, even if there is a delay. According to Mint, these reforms are part of the broader process and structural changes aimed at cutting taxpayer compliance burden and smoothing the flow of input tax credit (ITC). The focus remains on faster processing once systems are ready, with automated sanctioning of refunds beginning after November 1 for future claims.
The Finance Ministry will invite comments from businesses on proposed changes to monthly GST return forms beginning November 1, according to a senior official. As reported by Business Standard, CBIC Commissioner GST Policy Wing Gaurav Singh announced that the amended GST return forms will be put up for public consultation on the 'MyGST' portal on November 1 and will remain open for comments until November 30. The amended GST return form will be applicable from April 1, 2027. According to The Economic Times, the feedback period will begin on November 1 as the government moves to cut mismatches in tax liability and input tax credit (ITC) claims.
The 57th GST Council meeting comprising Centre and state finance ministers had approved an alternate mechanism for making amendments to liabilities and input tax credit (ITC) in GST returns to minimise mismatches and reduce notices/intimations. According to Business Standard, the Council approved enhancements in GST Forms GSTR-1/1A/IFF to enable better reconciliation of details furnished in these forms with the details reported in the returns in monthly tax payment form GSTR-3B. As reported by The Economic Times, the Council also recommended a new rule 86D, which will create an electronic statement of tax paid under reverse charge and ITC claimed on the GST portal. The Council recommended a new sub-rule (1A) in rule 61 as well, so that the liability shown in GSTR-3B lines up with the details in GSTR-1, GSTR-1A and IFF. A circular will also explain how to report ITC and its reversal in GSTR-3B.
Singh indicated that once the integrity issues of the ITC chain get resolved, it would give impetus to further reforms in Goods and Services Tax (GST). The official added that the restriction under Section 16(2)(c) of the CGST Act — which links a buyer's input tax credit (ITC) to the actual payment of tax by the supplier — would be taken up for detailed study by the committee of officers formed to examine it. The committee was expected to submit its report within three months, after which it will be placed before the GST Council for a final decision. Currently, genuine buyers can face denial or reversal of ITC even when they hold a valid invoice, have received the goods or services, and have paid the supplier, if the supplier fails to deposit the tax with the government. Any decision arising from the committee's recommendations was targeted for implementation from April 1, 2027.
