GST returns to become time-barred: No filing after 3 years

The Goods and Services Tax Network (GSTN) has released an advisory notifying taxpayers that the GST portal will soon introduce a restriction on filing certain GST returns more than three years past their due date. 

 

GSTN also announced that these changes, which limit GST return submissions after a three-year period, will be implemented on the GST portal beginning early 2025. This change aims to curb evasion and promote compliance in a timely manner and for better regulation and fact checking. 

 

“To avoid pitfalls and lapses, one must regularly review one’s GST returns and verify GSTIN details to ensure accuracy. In case of any inaccuracy, one can amend such returns before the deadline,” said Jasmine Damkewala, Senior Partner at Circle of Counsels and Advocate.

 

 

What will happen if you fail to act regarding this advisory?

 

The registered tax payer will be treated as a defaulter of GST laws and there are chances of the registration being cancelled. Further, there is a potential issue for taxpayers who fail to submit a late GST return and get time-barred by the GST portal is that the GST department might begin a best judgement assessment. However, it is important to be noted that considering this mandatory limitation followed up with adequate intimation, may also limit the power of the High Courts to grant relief to make retrospective changes

 

What steps should be taken to avoid any mistakes?

 

“The taxpayers shall compile or reconcile requisite information to prepare the GST returns and file the returns within three years from the respective return due date. Considering the taxpayers are filing the returns pertaining to past periods, it is advisable to ensure accuracy by performing reconciliations with books of accounts and input tax credits appearing in form GSTR-2B. Further, the registered taxpayers are advised to proactively audit their filing history and address any outstanding returns within the remaining window,” said Rajarshi Dasgupta, Executive Director - Tax, AQUILAW.