Taxpayers Pay Attention! You Won’t Be Able To File GST Returns Pending For Three Years From July; Here’s Why

In a major Goods and Services Tax (GST) rules overhaul, taxpayers won't be able to file returns for their GST after more than three years from July 1. The Goods and Services Tax Network (GSTN) notified revision of rules to prevent taxpayers from filing their monthly and annual GST returns if they are more than three years overdue, reported PTI on Saturday.

The revised GST return filing rule will be introduced through the Finance Act of 2023 and will impact nearly all types of GST returns including GSTR-1, GSTR-3B. Hence, GST taxpayers must revisit their records and submit any outstanding returns promptly to avoid any issue in future.

What Will Change For GST payers From July?

The GSTN has advised that from the July tax period onwards, GST payers won't be able to file returns like GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, and GSTR-9 once three years have passed since the original due date. Consequently, taxpayers won't be able to file GST returns of tenure before 2022.

After GST returns related to payment of the liability, annual returns and tax collected at source will become time-barred. Additionally, the GST outward supply returns will also become time-bound for taxpayers.

"The returns will be barred for filing after expiry of three years. The said restriction will be implemented on the GST portal from the July 2025 Tax period," PTI quoted GSTN's advisory.

GSTN had intimated taxpayers about the planned GST returns rule revision in advance in October. The body had alerted taxpayers that the said provision of tax barring would be implemented in early 2025.

Revised GST Returns Rules May Negatively Affect Taxpayers

While the revised GST returns rule will enhance system discipline and curtail prolonged non-compliance, it will severely impact taxpayers who due to some reasons or system issues have pending filings, AMRG & Associates Senior Partner Rajat Mohan told PTI.

How To File ITR Online?

-To file GST returns online, taxpayers must first have a GST Identification Number (GSTIN) and register their account on the GST portal.

-Begin by logging into the portal with your user ID and password. Navigate to Services > Returns > Returns Dashboard.

-Select the Financial Year, Quarter, and Period (month) on the 'Return Dashboard' page. Enter relevant details and click 'SEARCH'.

-The page will display return forms relevant to your GSTIN such as GSTR-1, GSTR-2A (view only), GSTR-2B, and GSTR-3B.

-Select 'Prepare Online' for your chosen return form. Fill in all necessary details, save it, then click 'Submit'.

-After submission, check 'Track Return Status' to ensure it shows as 'Submitted'. Next, proceed to 'Payment of Tax', click 'Check Balance' to view available credit and cash balances.

Different Types Of GST Forms

Taxpayers need to file their GST returns from different categories and sources. GSTR-1 is filed on a monthly basis or quarterly basis by the 11th or 13th day from the succeeding month or quarter. It details outward supplies of goods and services. GSTR-3B is self-declaration form due on the 20th for monthly filers or 22nd/24th for quarterly filers under the QRMP scheme.

GSTR-4 is an annual return due by June 30th of the following year. GSTR-5 is for the non-resident foreign taxpayers file GSTR-5 monthly by the 13th. The form includes all outward supplies made, inward supplies received, credit/debit notes, tax liability and taxes paid.