GST Return Filing Deadline Extended; Delay Expected

GST return filing is being delayed due to GSTN site difficulties, with a possible deadline extension expected to ease compliance challenges.

In summary, technological challenges with the GSTN interface are causing delays in filing GSTR-1 returns.

Delays may interrupt Input Tax Credit claims, impacting cash flow. Taxpayers want CBIC to extend the filing deadline.

Businesses across India may face a delay in filing GSTR-1 returns due to technical difficulties with the Goods and Services Tax Network (GSTN) portal. With the January 11, 2025, deadline for December 2024 reports rapidly approaching, taxpayers and professionals are urging immediate action.

On January 10, GSTN said on X, "The GST site is currently experiencing technical problems and is being maintained. We expect the portal to be operational by noon. An incident report is being sent to CBIC so that it can consider extending the filing deadline. Thank you for being understanding and patient!"

Filing Process Disrupted Due to Technical Issues

The GSTN interface, which is required for submitting GST returns, has been down due to technical issues. While the system is anticipated to be online by noon on January 10, 2025, the outage has slowed important activities such as filing GSTR-1 reports, accessing older data, and responding to alerts.

Many tax professionals have emphasized the need to have contingency plans in place to prevent such disruptions from affecting the tax filing process.

Request for Deadline Extension

The Central Board of Indirect Taxes and Customs (CBIC) has yet to issue a formal notification of an extension to the GSTR-1 reporting date.

However, GSTN has filed an incident report with CBIC, requesting a possible prolongation. To assist affected taxpayers, industry experts recommend extending the deadline to January 13, 2025, particularly since January 11 occurs on a Saturday, which is a non-working day for many international corporations.

Effect on Input Tax Credit

Delays in reporting GSTR-1 can have a cascade effect on businesses. GSTR-1 data is required to generate GSTR-2B, which allows buyers to claim Input Tax Credit (ITC).

A delay in GSTR-1 reporting delays GSTR-2B creation, thus depriving buyers of timely ITC claims. This could cause cash flow issues for businesses with large input purchases, as they may need to pay GST liabilities in cash until ITC is credited in subsequent quarters.

As firms await an official pronouncement from CBIC, they expect a quick resolution and a more resilient system to enable seamless tax compliance. Taxpayers and professionals alike stay on alert as they navigate these unexpected hurdles.