The GSTR-9 filing due date got an extension till 30 November due to several technical glitches and other problems taxpayers faced during the return filing process. Let’s take a look at the primary reasons due to which the GSTR-9 deadline was extended.
- The Excel Utility, meant for sending and uploading the returns, was not functioning until two days before the previous deadline, i.e. 31 August 2019.
- Small taxpayers who operate via multiple registrations but don’t have individual Books of Accounts are facing troubles in preparing GSTR-9. This is because they do not have data split based on the GSTIN registrations.
- Several taxpayers used pirated/duplicate software to file their returns. Hence, they failed to generate XML. Even in the few cases where a taxpayer generated an XML successfully could not proceed further since the system displayed errors.
- The GST audit and the GST annual return filing process is a lengthy process. The GST annual return form has 19 tables and 350 boxes to punch. Both GSTR-9, as well as GSTR-9C, have 10 pages each.
- Irrespective of changes in tax rates and laws, taxpayers continued to file their returns in 2017-18. As a result, there were a lot of differences and mistakes concerning the financial statements the taxpayers made. As part of GST audit and GST annual return, taxpayers are supposed to reconcile returns along with their financial statements. When taxpayers did their reconciliations, there were differences. Hence, taxpayers are taking more time to do reconciliations as they fear that in case they report differences, they will be facing a lot of questions from the tax department.
- In several instances, the GST portal takes more than one hour to generate the required JSON file for offline preparation of GSTR-9. However, the site claims to create the JSON file within 20 minutes.
- Taxpayers also faced a lot of issues during the process of downloading and uploading the JSON file on the offline utility tool. Taxpayers received error messages such as ‘Download in process’, ‘File generation is in progress’, and ‘Please check after 20 mins’.
- The error report (JSON file,) which is generated after the GSTR–9C upload does not contain any of the error details. As a result, taxpayers are unable to identify the exact reasons due to which the JSON file is not getting processed successfully.
- In a few cases, taxes were paid correctly; however, the information reported in GSTR-1 and GSTR-3B were incorrect. Businesses who reported information incorrectly are facing troubles concerning reconciliation in GSTR-9 since the revision of GSTR-3B and GSTR-1 is not allowed.
- Various regions across India have been severely affected due to floods. Businesses will need some time to get back to normalcy. Hence, a due date extension will give these businesses the much-needed relief since they will get more time to file their returns.
- Computation of Table 10 and Table 11 is a strenuous task since the reconciliation of the outward supplies (amendments, invoices, and CDNs) needs to be done on the basis of tax payments made for the same in FY 2018-19.
- GSTR-9C requires bifurcation and splitting of the expense ledger into several heads. This exercise is highly complicated.
- Input Tax Credit needs to be split GSTIN wise as well as Rate wise in GSTR-9 and GSTR-9C. A few taxpayers are of the opinion that since this bifurcation step is of no impact it needs to be taken off. Also, the task of bifurcating ITC is a tedious task too.
Bhavana is a Senior Content Writer handling the GST vertical. She is committed, professional, and has a flair for writing. When away from work, she enjoys watching movies and playing with her son. One thing she can’t resist is SHOPPING! Her favourite quote is: “Luck is what happens when preparation meets opportunity”.