GST return filing to get easier! CBIC plans simpler process; monetary threshold for demand notices to bring relief

The Central Board of Indirect Taxes and Customs (CBIC) is working on a mechanism to introduce a monetary limit for issuing GST demand notices, in a bid to reduce unnecessary disputes and avoid notices being issued on flimsy grounds, PTI reported citing a senior official on Tuesday.Shashank Priya, Member, CBIC, said the board will soon release instructions to field formations, along with measures to ensure mentoring by senior officers. “When we finalise our instruction, we will ensure some sort of mentoring by senior officers so that notices are not issued on flimsy ground,” he said at an Assocham event.“The messaging that we need to give is, we are not interested in demand just getting confirmed… We are working on setting up a monetary limit for demand notices,” Shashank Priya added.He stressed that once a demand is raised, field offices must ensure “fair adjudication.” “…where demand is not fair we shouldn’t be scared of dropping it. That is a cultural change we have to start working,” he said.

Simpler GST return process in works

The tax body member also said the department is making efforts to simplify the GST return process by automating both outward supply and inward purchase filings. Letters have been sent to associations and field formations to gather feedback on amendments needed in the existing GSTR-3B framework, he noted.

“At the end of the day the only point of input in return for those with annual turnover of above Rs 5 crore is e-invoice and everything else will be automated,” Priya said. Currently, e-invoicing is mandatory for B2B sales by businesses with turnover of Rs 5 crore and above.The CBIC is also exploring ways to make e-invoicing simpler so that taxpayers with lower turnover can adopt it more easily.

Expert views on monetary threshold

Tax experts have welcomed the proposal. AMRG & Associates Senior Partner Rajat Mohan said, “At present, even small-value disputes often result in notices, leading to unnecessary compliance burdens and litigation for businesses.

By prescribing clear monetary limits, the system can focus on material cases, reducing administrative effort on trivial matters.”Currently, the threshold for departmental appeals is Rs 20 lakh before the Appellate Authority, Rs 1 crore for the GST Appellate Tribunal, and Rs 2 crore for High Courts and the Supreme Court.“Introducing such limits at the notice stage will streamline compliance, conserve both taxpayer and administration resources, and foster greater trust between businesses and authorities by ensuring that enforcement efforts are proportionate to the financial significance of the dispute,” Mohan added.