The GST Council relaxed return filing rules for businesses for the first two months of the rollout of the new indirect tax regime even as it stuck to the July 1 launch date.

The GST, the biggest tax reform in India's 70-year history, will require firms to file three online returns each month. Some business lobby groups have urged a delay to the rollout to allow more time to get ready.

July 2017 and August 2017. During the said period, tax would be payable based on a simple return (Form GSTR-3B)  to be submitted before 20th of the succeeding month containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month. However, the invoice-wise details in regular GSTR-1 can be filed later.

 

Month

GSTR 3B

GSTR 1

GSTR 2 (Auto populated from GSTR 1)

July 2017

20 August 2017

1 September to 5 September 2017 *

6 September to 10 September  2017

August 2017

20 September 2017

16 September to 20 September 2017

21 September to 25 September 2017

 

* Facility for uploading of outward supplies for July, 2017 will be available from 15 July, 2017.

 

Impact of revised return filing date

As per the revised return filing timeline decided by the Council, for July, the sale returns will have to be filed by 5 September instead of 10 August. Companies will have to file sale invoice for August with the GST Network by 20 September instead of 10 September earlier.

 

Penalty on Interim Period

No late fees and penalty will be levied for the interim period and the returns will have to filed by businesses with self-declaration, stating the input credit claimed and the tax liability pursuant to that.

     

 

 Why GST extended deadline for filing returns?

The Goods and Services Tax (GST) Council extended the deadline for filing return for the first two months and allowed a simpler format for the same citing lack of preparedness on part of the ERP providers and other businesses.

However, stakeholders and industry experts including GST suvidha providers (GSPs) said  that the lack of preparedness was largely due to Council’s decision to tweak the return forms which proved to be overwhelming for GST Network (GSTN) to incorporate in the short period available.

 

 

 

 

 

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