GST: Last date for filing of tax returns for July, August extended

The GST council chaired by finance minister Arun Jaitley.

Amid reports of a sudden surge in filing of returns that put a huge load on the Goods & Services TaxNetwork (GSTN), the IT backbone for GST, the government on Monday extended the last date for filing of returns for three categories. So the sales return or GSTR-1 for July will have to be filed by September 10 instead of September 5 earlier while purchase returns or GSTR-2 will have to be filed by September 25 instead of September 10 earlier. Along with this, GSTR-3 that is the match of GSTR-1 and GSTR-2, will have to be filed by September 30, in place of September 15.

Detailed invoice level returns are necessary for businesses to avail of credit for the payment of taxes on various services and raw materials used in their operations. The notification also said that entities who had not filed GSTR-3B can file the final returns in GSTR-1, GSTR-2 and GSTR-3 and pay taxes. The deadlines for filing a provisional summary tax return for July, called GSTR 3 B and to remit taxes for that month are already over. The government has extended the deadline for filing the GST returns till September 10. The post said, “GIC decides to extend Date of GSTR 1, GSTR 2 and GSTR 3 for the month of August to 5th, 10th and 15th October 2017 respectively”. The original deadlines were 20 September, 25 September and 30 September.

Several traders and businesses said they were unable to access the system.”There are big technological issues with the system and because of its millions of businesses are facing the problem”.

The circular stated that late fee for all taxpayers who could not file GSTR 3B for July has been waived, however it maintained that the interest on late payment of dues is still applicable. “Since tax would be collected on a monthly basis, revenue will not get impacted”, said Jain.

Last week, the government announced it has comfortably met the collection targets for the first month of GST implementation in July.