One Nation One Tax & Multiple Dates

Government has recently come up with series of notifications regarding due dates for filing GST Returns. And in those notifications they have divided the India based on geographical and financial conditions.

For example,

- If two taxpayers are having same turnover (say Rs. 1 Crore) but registered in different states (say Delhi & Mumbai) then due date for Delhi taxpayer is different from Maharashtra taxpayer.

- If two taxpayers are registered in same state (say Delhi) but having different turnover (say Rs. 1 Crore and Rs. 6 Crores) then due date for Taxpayer –A is different from Taxpayer- B, despite being registered in the same state.

- In the above example if Taxpayer –B purchases goods from Taxpayer –A, then there would be mismatch in GSTR-2A of Taxpayer-B, because B is claiming input on monthly basis whereas A is filing it’s outward return in GSTR-1 on quarterly basis.

What was the need of dividing taxpayers into different class and notifying different due dates?

The answer was given by government vide press release dated 22.01.2020. Extract of that press release is being reproduced below.

Press Release dated 22.01.2020

“Presently the last date of filing GSTR-3B returns for every taxpayer is 20 of every month. From now on, the last date for filing of GSTR-3B for the taxpayers having annual turnover of Rs 5 crore and above in the previous financial year would be 20 of the month… The taxpayers having annual turnover below Rs 5 crore in previous financial year will be divided further in two categories….

In a statement issues, the Ministry further said that it has also taken a note of difficulties and concerns expressed by the taxpayers regarding filing of GSTR-3B and other returns. The matter has been discussed by the GSTN with Infosys, the Managed Service Provider, which has come out with above solution to de-stress the process as a temporary but immediate measure. For further improving the performance of GSTN filing portal on permanent basis, several technological measures are being worked out with Infosys and will be in place by April 2020.”

So what was done by government as a temporary measure, now seems to have become permanent. Instead of improving GST Portal, government has ended up by creating confusion among taxpayers and professionals by dividing taxpayers into different class and notifying different due dates for each class.