New GST Return Filing System to Curb GSTN Portal Crash

The Goods & Services Tax Network (GSTN) has struck on some ideas to introduce in the new return filing mechanism which will be effective from the next fiscal year. Under this new system, separate due dates for return filing will be allotted to two different types of taxpayers (categorized based on annual turnover) to avert eleventh-hour hustle that leads to the crashing of the GST portal.

According to Prakash Kumar, CEO, GSTN, “It will help avoid the last-minute rush,”.

Due date to file returns View the revised due dates of GST return filing forms of GSTR 1, GSTR 3B, GSTR 4, GSTR 5, GSTR 6, GSTR 9, etc. The dates are according to the Indian Government announcement for the big taxpayers with an annual turnover of Rs 5 crore or higher, will be 20th of every month. While that for the small taxpayers with an annual turnover of below Rs 5 crore, it will be 25th of every month. The separate due dates to file returns for small and big taxpayers will avert last-hour scamble and ensure smooth processing on the portal.

Under the GST regime, every taxpayer need to file GST returns even when no business is carried out by him or in case of zero turnovers. However, the new GST return filing system View the full comparison report between old and new GST return filing system in a systematic manner. The new system will be applicable from July 2019 brings relief for the taxpayers who submit nil returns as now they will not have to visit the GST portal to file the return, they will be able to do so just by sending an SMS.

Approx 22.73% of total GST returns filed in 2017-2018 were nil returns filed during the year and 70.22% returns filed in 2017-2018 were furnished by those with an annual turnover below Rs 5 crore. Such small taxpayers can now opt to file quarterly returns.

28% of all the taxpayers had made only an annual turnover of below Rs 5 crore and they carried out only B2C transaction. Under the new GSTR filing mechanism, they can simply opt to file Sahaj which is a simple two-table form. Under the new system, just 7.06% of taxpayers have to mandatorily file monthly GSTRs.

Unlike the current system which defines separate filings and due dates for different returns such as GSTR-1, GSTR-2A, etc; under the new system, there will be only one due date in a month with similar filings for various GSTRs.

Previously, the due date for filing GSTR-1 Know the step by step procedure of GSTR 1 form filing by Gen GST software version 2.0. Also, we have merged all screenshots in one PDF file, GSTR-2A, and GSTR-3B was 11th, 15th and 20th of every month, respectively. However, under the new system, as soon as Ret (the equivalent of GSTR-3B under the new system) is filed, the Anx-1 (the equivalent of GSTR-1) and Anx-2 (the equivalent of GSTR-2A) will be considered as filed.

“There are no separate filings of Anx-1 and Anx-2 The complete guide for online filing GSTR 1 form in a very easy and step by step manner. We have explained its part 1 to part 13 with the original form screenshots as such under the new system. The pressure on taxpayers for multiple filing dates won’t be there,” states Kumar.

Taxpayers face a lot of problems while filing returns in the last two days just before the deadlines. In this regard, Kumar says if everyone comes for filing returns in the last 4-5 hours of the due date, no system can handle the load.

At present, the GSTN portal handles the concurrency of 1.5 lakh. Concurrency, here, refers to the total number of users who can file the return at a particular point of time.

He further underlines that many taxpayers have become habitual of filing the returns after the due dates and only 60-62% of the taxpayers file the returns on time. “There are cases we have identified who regularly file returns late by 10-20 days,” he says.

Technical setbacks occur frequently on the GSTN website in the last two days of GSTR filing due to the last-hour rush for filing returns. This is the source of disruption for businesses which makes return filing, a troublesome process for them.

Technical glitches effects last moment GSTR filings and other GST-related conformities. Every month, taxpayers complain about the termination of the GSTN website working for hours in the last two days of GSTR filing.

To resolve these issues, the 20th and 25th of every month have been concluded as the due dates to file returns by the big and small taxpayers, respectively. The introduction of a new return filing system by the GSTN foresees to solve the technical problems that sprout out due to overloaded filing of GSTRs on the GST portal during the last two days before the due date of filing.