India Business Journal - Filing GST returns set to be time-barred after three years of due date

ECONOMY

Filing GST returns set to be time-barred after three years of due date

IBJ Bureau
Oct 30, 2024

Goods and Services Tax Network (GSTN) has said that beginning early next year, GST taxpayers will not be able to file monthly and annual GST returns after three years of the original filing due date.

In an advisory, the GSTN has said that GST outward supply returns, besides returns related to payment of liability, annual returns and tax collected at source will become time-barred after the expiry of a period of three years from the due date of furnishing the said return.

“The said changes are going to be implemented in the GST portal from early next year (2025). Hence, the taxpayers are advised to reconcile their records and file their GST returns as soon as possible, if not filed till now,” the GSTN has added.

AMRG & Associates Senior Partner Rajat Mohan has noted that the recent GSTN update concerning the barring of GST return filings after a three-year deadline introduces a significant compliance shift.

“This move aligns with a broader intent to ensure timely compliance, enhance data reliability and potentially reduce the backlog of unfiled returns within the GST system. By capping the period for delayed filings, taxpayers are motivated to reconcile and rectify their records promptly.”

Mr Mohan adds: “However, it may also create challenges for taxpayers with historically unfiled returns, especially those facing administrative or logistical constraints in consolidating older records.”