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CBDT, GST Council need to extend due dates for Corporate tax return filing & GSTR-2

Published: Oct 29, 2017

By TIOL News Service

NEW DELHI, OCT 29, 2017: OCTOBER 31 is the deadline for filing GSTR-2 but the Infosys-cushioned GSTN is not able to support the taxpayers. Too many errors have been reported by taxpayers from all over the country. As a result, a large number have not been able to file it. Those who have done it, are not sure of whether they have done it right.

After concluding the third meeting on GSTN-related issues, the Sushil Modi-headed Panel said that about 12 lakh GSTR-2 have been filed so far but experts believe that a good number of these filed GSTR-2 would have serious error which would cost the taxpayers heavily and may be detected later. Ideally, experts believe that the GSTN should also provide a step-wise guidance note online when one opts to file GSTR-2 so that the scope of error is reduced. Some sort of FAQ should also be provided on the screen based on the errors reported so far.

In this background, it is high time the GIC extends the date for filing GSTR-2 which is clashing with the deadline for filing corporate tax returns and the professionals are feeling hugely squeezed. The GST Council and the CBDT both need to give more time to professionals by extending the due dates by at least 15 days. With the CBDT amending the tax audit format and the GSTN still struggling with the GSTR-2 errors, the days ahead are going to be more challenging for the taxpayers and professionals.

Meanwhile, after concluding the third review meeting, Mr Sushil Modi told the mediapersons that 47 functionalities of the GSTN were prioritised with Oct 30 as the deadline and the Infosys has completed 27 of them so far. Out of the 27, the GSTN has operationalised 18 of them. He said the Infosys has deployed workforce of over 100 personnel and has been directed to put its best men on the job to meet the deadline.

He also informed that for the month of July, the total GSTR-3B was 56 lakh; for August it was 53 lakh and for September it is about 46 lakh. The GSTR-1 for July was about 47 lakh but only about 12 lakh GSTR-2 has been filed. He also hinted that about 10 lakh dealers are required to file NIL returns. Since they have no tax liability they have not done it but they are required by the law to file the returns.

TIOL Observation: The Union Finance Minister needs to take a taxpayer-friendly decision to extend the due dates for both the corporate tax return-filing as well as GSTR-2. Professionals need not be forced to burn midnight oil and maker errors in order to meet the unrealistic deadlines.