Returns - From Mismatch Detection to Mismatch Prevention

The 57th GST Council's proposed return reforms seek to make the GST portal an active mechanism for reconciling and validating tax positions before returns are filed. Closer alignment between GSTR-1, GSTR-3B, GSTR-2B and the Invoice Management System, alongside dedicated electronic statements for RCM and ITC reversals and reclaims, will shift reconciliation closer to the source of transactions. While this will demand stronger data discipline and system readiness from taxpayers, it could reduce routine mismatches and avoidable notices. J's View: The real reform lies in moving GST from mismatch detection to mismatch prevention, making compliance more preventive and less enforcement-driven.