Only 40 lakh or 62% of eligible taxpayers under the goods and services tax (GST) had filed the comprehensive outward supply return GSTR-1 for July at 10 am on Tuesday, a senior official told FE. The deadline for submission of GSTR-1 ended at the intervening night between October 10-11.
The slow pace of filings — just 82% of the qualified taxpayers had filed even the summarised return GSTR-3B for July so far while the number was even lower at 75% August — has aroused the curiosity of 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 GST Network (GSTN). GST is already into the fourth month.
Nearly 13 lakh assessees had filed the interim summarised August return (GSTR-3B) on the last day (September 20).
Even if this trend holds, at lest 15 lakh businesses won’t have filed GSTR-1 by the deadline.
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 GSTN, 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 input tax credit (ITC).
Additionally, businesses will get a chance to file this return only in November if they fail to do so by Tuesday midnight. This is because the window for filing GSTR-2 (details of inward supplies) will open from October 11, and the system will not allow any further filing of GSTR-1 till the end of the month, leading to blockage of ITC for many assessees. However, this is unlikely to cause any revenue loss to the government as 95% of it is collected from less than 5% of assessees.
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.