The Union Finance Minister Nirmala Sitharaman chaired the 55th meeting of the GST Council today ( 21st December 2024 ) at Jaisalmer, Rajasthan. The council recommended amending section 38 of CGST Act, 2017 and rule 60 of CGST Rules, 2017 to provide a legal framework in respect of generation of FORM GSTR-2B based on the action taken by the taxpayers on the Invoice Management System ( IMS ). The Central Goods and Services Tax ( CGST ) Act, 2017 and associated regulations amendment must  create a legal foundation for creating FORM GSTR-2B in order to improve the effectiveness and precision of input tax credit (ITC) reconciliation and expedite compliance. Integrating the Invoice Management System (IMS) with the compliance mechanism is the main goal.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here Section 38 addresses accessing ITC details and providing information about inbound supply on FORM GSTR-2. Use GSTR-2B instead of GSTR-2 when referring to it, making sure to note that the form is system-generated and not editable. To manage real-time invoice processing and GSTR-2B creation, the GST Network ( GSTN ) needs to have a strong infrastructure. To acquaint taxpayers with IMS and its integration with GSTR-2B, sufficient training and awareness initiatives would be necessary. Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here Addressing disparities in ITC claims brought on by mismatched invoices or IMS errors will require a well-defined methodology.

In order to create a more transparent and effective tax compliance ecosystem, the proposed revisions to Section 38 and Rule 60 seek to connect the Invoice Management System (IMS) with the automated generation of FORM GSTR-2B. This would improve accuracy, lower the number of disputes, and increase confidence in the GST system. But for it to be successful, meticulous execution and sufficient support systems are essential. In addition to Chief Ministers from Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha, as well as Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana, the meeting was attended by Union Minister of State for Finance Shri Pankaj Chaudhary and Revenue Secretary Ajay Seth.