Taxpayers who have not filed their returns almost from three years, must file within three years from the original due date as late submissions beyond this period will not be accepted on the GST portal.
As per the notification, returns which are pending beyond three years could lead to compliance issues.
What's in the Notification?
Under the Finance Act, 2023, notification issued that a significant change in the deadline for filing certain GST returns was introduced. From October 1, 2023, taxpayers will be restricted from filing their GST returns beyond three years from the original due date.
Notification No. 28/2023 - Central Tax: Issued on July 31, 2023, enforcing the rule from October 1, 2023.
This restriction was not applied on the portal till now.
But as per the recent update on the portal, changes are expected to be implemented on the GST portal by early 2025.
Which sections and returns under GST to be affected?
Sections Affected by the New Three-Year Filing Limitation
Section 37 - Outward Supplies which covers filing of GSTR-1.
Section 39 - Payment of Tax Liability including returns like GSTR-3B.
Section 44 - Annual Return.
Section 52 - Tax Collected at Source (TCS) which covers GSTR-8 for e-commerce operators.
Affected returns under these sections
GSTR-1 : Monthly or quarterly outward supply details.
GSTR-3B : Monthly summary of outward supplies and tax liability.
GSTR-4 : Return for composition scheme taxpayers.
GSTR-5 & 5A : Returns for non-resident taxpayers.
GSTR-6 : Filed by input service distributors (ISD).
GSTR-7 : Filed by persons liable to deduct TDS.
GSTR-8 : Filed by e-commerce operators.
GSTR-9 : Annual return.
Recommendation for Taxpayers
Actions should taxpayers take to comply with the new three-year GST filing rule are:
- Taxpayers must review and match all records to ensure accuracy.
- Submit any pending returns as soon as possible to avoid missing the three-year window.
- As the change will going to implement on the GST portal in early 2025, taxpayers are advised to address any to identify any outstanding returns
Conclusion
This change emphasizes the importance of timely GST compliance to stay up-to-date with their filing obligations.
CAclubindia
