The Goods and Services Tax Network (GSTN) has identified major technical glitches with the GST portal, leading to discussions on a possible extension of GSTR-1 filing. The portal is currently undergoing maintenance and is expected to resume operations soon, GSTN said in a statement on X (formerly Twitter).
The matter has been referred to the Central Board of Indirect Taxes and Customs (CBIC) through an incident report, but no official notification has been issued to extend it.
Impact of GSTR-1 filing deadlines
The last date for filing GSTR-1 for the December 2024 tax period is February 11, 2025, for regular taxpayers and February 13, 2025, for the Quarterly Return Monthly Payment (QRMP) scheme, but technically errors prevented many businesses and certified accountants from submitting returns, downloading data, or responding to notices.
Tax professionals express concern
Chartered accountant Himank Singla highlighted routine issues, including failure to produce GSTR-1 summaries and receipt of required documents like RFD-01. He highlighted the repeated technical failures in the GST portal during the peak period, which led to frustration among taxpayers.
Another chartered accountant, Hanni Munjal, pointed out that the deferral of GSTR-1 could hamper the filing of GSTR-2B forms, which is important for customers claiming input tax credit (ITC). These delays could hinder the provision of working capital to businesses, especially multinationals. They have to pay GST liabilities in cash.
Potential deadline extension
Experts have suggested a 2-3 day extension in the GSTR-1 filing deadline, potentially until January 13, 2025, to address the issue. However, this extension might compress the reconciliation window for GSTR-2B, adding further complications for taxpayers.
Who needs to file GSTR-1?
As per GST rules, all registered taxpayers making outward supplies of goods or services must file GSTR-1, except for composition taxpayers, input service distributors, and those liable to deduct or collect tax. Taxpayers with a turnover of up to ₹5 crore can opt for quarterly filing under the QRMP scheme.
With businesses eagerly awaiting a CBIC decision, the government faces pressure to ensure smooth compliance while addressing systemic flaws in the GST portal.
Also read | Equity mutual fund investments soar in December: SIPs hit record Rs 26,459 crore amid market volatility
