Only 46 lakh or 71% of those payers eligible under the goods and services tax (GST) filed the comprehensive outward supply return GSTR-1 for July till the Tuesday deadline. The details of the inward supplies (GSTR 2) for July have to be filed between October 11 and 31, and GSTR 3, which is the summary of tax liability and input tax credit (ITC), by November 10, GST Network said.
The slow pace of filings — just 84% (54.8 lakh) of the qualified taxpayers had filed even the summarised return GSTR-3B for July while the number was even lower at 72.5% (471 lakh) for August till October 10 — has vexed the tax department.
As reported by FE earlier, a survey is going on to ascertain the reason behind the unhurried way businesses upload the required documents on the GSTN. GST is already into the fourth month.
Unlike GSTR-3B, which continues to be filed by assessees long after the deadline, the window for GSTR-1 can be opened again only after the deadline for filing GSTR-2 is over.
Tax experts fear that the invoice matching could be affected, leading to blockage of input tax credits due to 19 lakh taxpayers who failed to file GSTR-1. However, government officials say this will not impact revenue collection adversely as nearly 95% of the collection comes from less than 5% of assessees The GST Council had extended the dates for filing the comprehensive triplicate returns (GSTR-1, GSTR-2 and GSTR-3) by two month to October after the IT system, which is run by GST Network, malfunctioned in September due to heavy load and technical glitches.
While GSTR-3B is a one-page simplified form, GSTR-1 requires B2B businesses to upload all invoices generated during the month before filing the return. The details of sales in GSTR-1 return is then used to auto-populate the GSTR-2 returns for the buyer, which is required for claiming ITC.
The slow rate of filing GSTR-1 is also reflected in the number of invoices that have been uploaded to GSTN. While GSTN has estimated that nearly 80 crore invoices would be uploaded every month for filing GSTR-1, less than half (35.5 crore) had been uploaded till last Friday.
“Out of this, the majority of the invoices (24.2 crore) were uploaded using offline tool developed by GSTN, whereas data of 3.26 crore invoices were entered by taxpayers online. Data of around 5.56 crore invoices came through GST suvidha providers,” GSTN said in a statement.