There is no exemption for any taxpayers; all the businesses whose turnover is above 20 lakh have to file the GST Returns every month. As per the reports that have come out from the Finance ministry, there is no deadline extension for GSTR-1 for the month of July- Govt. of India. Only 40 lakh businesses filed GSTR-1 out of 53 lakh businesses across India. On quiet a contrary 82% of the eligible tax payers have filed GSTR-3B for the month of July but only 62% have filed GSTR-1, there was no specific reason that was mentioned by the government.

There could be multiple reasons why people might have not completed the GSTR-1 filing in-spite of providing the extension two times by the Government and it will not be possible to do so again. The impact of two extensions have been very evident in the delay and brought major changes to the system taking into account various problems conveyed by the common people. As per the general schedule the due date for GSTR-1 is 10th of October for the month of July-2017.

The main objective of filing the GSTR-1 returns is to pay the tax on outward supplies that he/ she, depending upon this GSTR-2A gets automatically generated as per the schedule. If there are any corrections in the GSTR-2A the Taxpayer has to file the corrections in the GSTR-1A. The first and the most generalized problem that the Taxpayer faces is that they will not be able to avail the ITC (Input Tax Credits) on whatever transactions he carried out in the month.

Another important reason is that the Supplier will not be able to enter the entries or upload the invoices or even he/ she cannot file the GSTR-1 during the whole month. Which implies it is mandatory for the Taxpayer to file the GSTR-1 every month or it will be a problem for both the supplier and the buyer. GST attracts fines and penalties which makes it more serious for the Taxpayers to do the filing before or at least on the last date of the deadline.

Late fee of 100 per day could be attracted which may be extended up to 5000 (Max) if the Taxpayer delays the GST Return filing. This will be a regular and compulsory process for all the Filings, The mandatory form has to be submitted if the business had NIL transactions in the month. As per a news outlet 73% invoices uploaded using the GSTN developed tool and 16% invoices came from the GSPs (GST Suvidha Providers), which is why government suggests to avail the GSP services which exists to reduce the burden on the government which in return reduce the technical issues that are being faced by the tax payers.


Content Courtesy:

Krishna Sriteja.D

GST Content Specialist | Tax Technology Enthusiast

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