Relief for GST Taxpayers: Deadlines Extended for GSTR-1 and GSTR-3B
The Central Board of Indirect Taxes and Customs (CBIC) has extended the deadlines for filing monthly and quarterly GST returns under GSTR-1 and GSTR-3B forms. This decision, announced on January 10, 2025, provides relief to taxpayers facing challenges due to technical glitches on the GST portal.
The updated deadlines are as follows:
- GSTR-1 (Monthly Filers): Extended to January 13, 2025.
- GSTR-1 (Quarterly Filers under QRMP Scheme): Extended to January 15, 2025.
- GSTR-3B (Monthly Filers): Extended to January 22, 2025.
- GSTR-3B (Quarterly Filers): Extended based on states, with deadlines on January 24 or 26, 2025.
This extension aims to alleviate the stress of compliance delays caused by technical issues, ensuring taxpayers can file returns without penalties.
Interconnection Between GSTR-1 and GSTR-3B
The decision to extend deadlines reflects the interconnected nature of the GST filing process.
- GSTR-1: Filed by suppliers to report outward supplies.
- GSTR-2B: Auto-populated for buyers based on supplier filings in GSTR-1, aiding reconciliation.
- GSTR-3B: Used to declare tax liabilities and claim Input Tax Credit (ITC), which relies on GSTR-2B data.
Under Section 16 of the CGST Act, 2017, ITC claims are contingent on matching purchase records with GSTR-2B. Delays in GSTR-1 filings can disrupt this process, highlighting the necessity for synchronized deadline extensions.
Expert Insights
- Himank Singla, Partner at SBHS & Associates
“This extension provides much-needed breathing room for taxpayers. Technical glitches on the GST portal left many unable to file on time, and the CBIC’s decision alleviates the stress of penalties.” - Hrishikesh Arun Wandrekar, Partner at Wandrekar & Company
“The interdependence of GSTR-1, GSTR-2B, and GSTR-3B is crucial for seamless compliance. Extending deadlines ensures taxpayers can reconcile data accurately.” - Ashish Niraj, Partner at A S N & Company
“The delayed generation of GSTR-2B due to the extended GSTR-1 deadline necessitated the GSTR-3B extension. It’s a practical move ensuring accurate compliance.”
Other Notifications
The CBIC also extended deadlines for additional forms:
- GSTR-5 and GSTR-6: From January 13, 2025, to January 15, 2025.
- GSTR-7 and GSTR-8: From January 10, 2025, to January 12, 2025.
Why This Matters
Timely compliance is critical for businesses to avoid penalties and maintain seamless GST credit claims. These deadline extensions, though minor, demonstrate the government’s intent to support taxpayers in navigating compliance challenges effectively.