GST Return Deadline Extension Likely as Portal Glitches Disrupt Filing Ahead of Due
Date Implications for Taxpayers and ITC Claims
The Central Board of Indirect Taxes and Customs (CBIC) may extend the GST return filing deadline as the Goods and Services Tax Network (GSTN) has reported technical difficulties on its portal, currently under maintenance. The deadline for filing GSTR-1 for the December 2024 tax period is January 11, 2025. Failure to file GSTR-1 on time prevents buyers from claiming Input Tax Credit (ITC).
GSTN announced via X (formerly Twitter) that the portal is expected to resume functioning by 06 PM on January 10, 2025. However, GSTN has submitted an incident report to CBIC, requesting an extension for the filing deadline. While CBIC has yet to issue an official notification, chartered accountants and tax professionals have raised concerns about the inability to meet the deadline. For taxpayers under the QRMP (Quarterly Return Filing and Monthly Payment) scheme, the GSTR-1 deadline for the same period is January 13, 2025.
A notice on the GSTN portal states
"Scheduled Downtime! GSTN is enhancing the services on the site. The services will not be available from 10th Jan’25, 12:00 AM to 10th Jan’25, 06:00 PM."
Recurring Issues and Impact on Compliance
The GST portal has faced several technical issues over the past two days, including:
- Inability to download DRC-01 notices
- Issues generating GSTR-1 summaries
- Problems accessing historical data
- Failure to open or file forms like RFD-01 and respond to SCNs
These glitches have caused frustration among businesses and tax professionals, highlighting the need for a more robust system. Technical difficulties during peak periods have become a recurring issue, leading to demands for contingency measures to prevent disruption to compliance.
Accelerated Filing Schedule and Its Challenges
Ordinarily, the GSTR-1 deadline falls on the 11th of each month. However, since January 11, 2025, is a Saturday, businesses may face challenges filing before this date, especially with the GSTN portal’s technical issues. Chartered Accountant Hunny, We noted that this anomaly forces businesses to complete their filings earlier than usual.
Delay in ITC Claims and Financial Repercussions
Failure to file GSTR-1 on time could disrupt buyers’ ability to claim ITC as GSTR-2B generation depends on timely GSTR-1 submissions. Typically, GSTR-2B is auto-populated on the 14th of each month, providing six days for reconciliation before filing GSTR-3B by the 20th. A delayed GSTR-1 submission could postpone GSTR-2B generation, potentially blocking significant working capital for companies with substantial input purchases.
This suggests extending the GSTR-1 filing deadline by 2-3 days to alleviate immediate pressure on taxpayers. However, this may compress the reconciliation timeline for buyers, complicating compliance processes further.
Filing GSTR-1: Who Is Required and Quarterly Filing Options
Form GSTR-1 is mandatory for all registered taxpayers, excluding composition taxpayers, input service distributors, and persons liable to deduct or collect tax. Businesses with an annual turnover of up to ₹5 crore in the preceding year may opt for quarterly GSTR-1 filing.
This incident underscores the need for a robust and reliable GST portal to ensure uninterrupted compliance for taxpayers, especially during peak periods. Tax professionals and businesses are awaiting a formal statement from CBIC regarding possible extensions and mitigation measures.
"Update on 10.01.2025 after 06 P.M."
In this regard, the Department of GST has issued the following notifications to extend the due dates for filing monthly and quarterly returns of GSTR-1 and GSTR-3B as detailed below:
Notification No. 01/2025 – (CT) dated 10th January 2025
Notification No. 02/2025 – (CT) dated 10th January 2025
- For GSTR-1
- Monthly filers: 13th January 2025
- Quarterly filers: 15th January 2025
- For GSTR-3B:
- Monthly filers: 22th January 2025
- Quarterly filers: 24th, 26th January 2025 (as per Notification State wise)