As taxpayers navigate the evolving landscape of Goods and Services Tax (GST) compliance, it is essential to stay informed about recent regulatory changes that impact filing processes and data retention. Two critical updates that require immediate attention are the three-year filing limitation under Section 39(11) of the CGST Act, 2017 and the seven-year data retention policy on the GST portal. Below is a comprehensive overview of these updates, along with actionable steps for compliance.
1. Filing Restrictions Under Section 39(11) of the CGST Act, 2017
Effective 1st October 2023, Section 39(11), as implemented through Notification No. 28/2023 - Central Tax dated 31st July 2023, restricts taxpayers from filing GST returns:
- Filing Deadline: Taxpayers will not be allowed to file returns after 3 years from the due date of the return.
This provision underscores the importance of timely filing. Once the 3-year period has lapsed, the opportunity to file or rectify returns is permanently closed.
Action Required:
- Review and file any pending returns that are approaching the 3-year limit to avoid penalties and the risk of non-compliance.
2. GST Portal Data Retention Policy: Archiving Data Older Than 7 Years
In addition to the filing restrictions, the GST portal has implemented a data retention policy:
- Archiving Schedule: Data older than 7 years will be archived and removed from the GST portal on a monthly basis.
Key Dates:
- On 1st August 2024, return data for July 2017 will be archived.
- On 1st September 2024, return data for August 2017 will follow.
- On 1st October 2024, return data for September 2017 will be archived, and this process will continue monthly.
This means that as time progresses, access to historical return data will be restricted.
3. Immediate Steps for Taxpayers: Download Historical Data
Taxpayers must download and save all return data that is older than 7 years to ensure continued access to important historical records.
What to Do Now:
- Prioritize downloading return data for periods like July, August, and September 2017 before they are permanently archived.
- Establish a routine to regularly back up return data nearing the 7-year threshold.
4. Consequences of Non-Compliance
Failing to adhere to these new provisions could lead to:
- Inability to file returns after the 3-year deadline, resulting in penalties.
- Loss of vital return data needed for audits or reconciliations.
5. Stay Ahead: Ensure Timely Filing and Data Protection
Taxpayers are strongly encouraged to take immediate action to comply with these updated regulations. Filing returns within the 3-year limit and downloading historical data before it’s archived are essential steps for avoiding future complications.
For more insights and professional guidance on how to navigate these changes, visit casahuja.com or reach out to Sandeep Ahuja & Co Chartered Accountants.
Don’t wait—protect your GST return data and ensure timely filings to remain fully compliant under the latest regulations.
At a Glance: Key Compliance Points
| Key Compliance Points | Details |
|---|---|
| Three-Year Filing Deadline (Section 39(11)) | Taxpayers cannot file GST returns after 3 years from the due date. This rule is effective from 1st October 2023. |
| Applicable Notification | Implemented via Notification No. 28/2023 - Central Tax dated 31st July 2023. |
| Action Required for Filing | Ensure all pending GST returns are filed within 3 years to avoid permanent closure of the filing window. |
| GST Portal Data Retention Policy | Data older than 7 years will be archived and removed from the GST portal on a monthly basis. |
| Key Archive Dates | - 1st August 2024: Data for July 2017 archived - 1st September 2024: Data for August 2017 archived - 1st October 2024: Data for September 2017 archived. |
| Future Data Archival | Data will be archived monthly as it crosses the 7-year limit. |
| Action Required for Data | Download and save all return data older than 7 years for future reference before it’s permanently archived. |
| Consequences of Non-Compliance | - Inability to file returns after the 3-year limit - Permanent loss of archived data after 7 years |
| This consolidated overview ensures that taxpayers are well-informed about their obligations and the necessary actions to take in light of these critical updates. |
