04/05/2023, Advisory for GST Returns: Timely Filing

It has been noted that certain taxpayers had trouble filing GSTR-3B for the period of March 23 to April 20, 2023. After examining the causes, it was discovered that a significant number of taxpayers attempted to file GSTR-3B returns on the last day’s afternoon (20.05 lakh GSTR-3B returns were submitted on that day). As a result, there was a wait list on the GST system, which annoyed some of the taxpayers.

On April 20th, 23′, almost 45% of the returns submitted were either NIL returns (no tax liability and no ITC availment) or returns in which no tax was paid in cash. These returns might have been submitted earlier with ease. Additionally, it is advised that taxpayers use the SMS filing option to submit NIL returns because it is a quicker and more convenient option, and it will also assist to decrease wait times on the GST system. Therefore, to prevent the last-day rush, taxpayers are urged to file their Form GSTR-3B well in advance.

On the due date for filing, it has also been seen that some taxpayers are uploading numerous invoices from the previous period (up to 27 lakhs) into a single GSTR-1. It is encouraged that taxpayers adopt a monthly return filing schedule for all B2B invoices for the month and refrain from reporting all invoices for the previous period at once as this practise can negatively affect the queue (waiting time) on the GST system.

The difficulty faced by taxpayers owing to a last-minute rush can thus be avoided with better planning for return filing, which will also benefit other taxpayers. Additionally, it should be mentioned that over time, GSTN significantly improved its infrastructure.

Thank You,
Team 2S Services