Budget Proposals -2023 Series: Asking Questions and Finding Answers [Part V]: GSTR 1, GSTR 3B, GSTR 8, GSTR 9 & 9C:
This blog is one of a series of topic-specific FAQs concerning Budget 2023 proposals. It addresses the practical issues raised due to proposed changes.
Vivek Laddha, Manish Gupta, Pooja Patwari
FAQ 1. What is the background of proposed amendment in section 37, 39, 44 and 54?
Law Brothers’ View: At present, the law provides a time limit to furnish the form GSTR 1, GSTR 3B, GSTR 8, GSTR 9 & 9C.
But law has not provided the time bar within which the same can be furnished. Now the proposed amendments provide that it shall not be allowed to furnish the form GSTR 1, GSTR 3B, GSTR 8, GSTR 9 & 9C after the expiry of a period of 3 years from the due date of furnishing the said form.
E.g. Where the due date of GSTR 9 and GSTR 9C of FY 2022-23 is 31 Dec 2023 (assuming it is not extended),with this proposal, it can be construed that it will not allow to furnish GSTR 9 and GSTR 9C post 31 Dec 2026.
FAQ 2. Amendments seek to tighten the screw in line with other provisions, isn’t it?
Law Brothers’ View: Law has already provided the various provisions intending to adhere with the time lines, such as
- Late fee,
- Notice u/s 46,
- Assessment of non-filer of returns,
- Penalty provisions
- Cancellation of registration,
- Disabling the generation of e-way bill and
- Disabling the subsequent filing of the forms etc.
Now one more feather, sorry, one more restriction is imposed here !!
FAQ 3. What types of practical problems can be foreseen from this amendment?
Law Brothers’ View: In appeal cases of revocation of cancellation of registration after the expiry of the 3 years from the due date, this provision may be a bar. Let’s see, how the law plays with such a situation.
FAQ 4. Is there any ray of hope of relaxation in this?
Law Brothers’ View: Amendments provide that the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish the Form GSTR 1, GSTR 3B, GSTR 8, GSTR 9 & 9C, even after the expiry of the said period of three years from the due date of furnishing such form.
Once the provisions are made effective, government may come up with the notification to cater to the situations of practical difficulties.