Important Update on GST Filing Deadlines for Taxpayers

Significant Changes for GST Return Filers

A crucial update has emerged for individuals filing GST returns who have not submitted their returns for the past three years. Starting from July, these taxpayers will no longer be able to file their returns. The GST Network announced on Saturday that from the beginning of the July tax period, GST taxpayers will be unable to submit monthly and annual GST returns three years after the original filing deadline. This means that for the tax period of July 2025, taxpayers will be expected to file their monthly returns in August of this year. Let's delve into the specifics of the update provided by GSTN.

Major Update on GST Filing

In a recent advisory, the Goods and Services Tax Network (GSTN) stated that taxpayers will not be able to file GST returns such as GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, and GSTR-9 after the three-year deadline. Amendments to the GST law regarding these deadlines have been implemented through the Finance Act of 2023. Consequently, returns related to liability payments, annual returns, and TDS, in addition to GST outward supply returns, will be subject to these time constraints.

Advice for Taxpayers

The advisory from GSTN emphasized that the prohibition on filing returns will take effect after the three-year period. This restriction will be enforced on the GST portal starting from the July 2025 tax period. Taxpayers are encouraged to reconcile their records and file their GST returns as soon as possible if they have not done so yet. Earlier in October, GSTN had warned taxpayers that this provision would come into effect at the beginning of 2025.

Expert Opinions

Rajat Mohan, a senior partner at AMRG & Associates, commented in a report that this measure enhances system discipline and reduces long-term non-compliance. However, it could severely impact taxpayers who have pending filings due to litigation, system issues, or actual inspections. Mohan noted that the lack of a remedial mechanism for exceptional cases could permanently deny input tax credits and lead to financial shocks.