GST portal faces technical glitch, deadline extension likely

The Goods and Services Tax Network (GSTN) portal is currently experiencing technical difficulties, significantly disrupting the filing process for GSTR-1 returns. As the deadline for filing returns for the December 2024 tax period approaches on January 11, 2025, businesses across India have reported problems with the portal. The GSTN has acknowledged the issue, which has prevented taxpayers from filing their GSTR-1 returns and accessing key information such as summary generation, older data, and replies to notices.

GSTN announced that the portal is under maintenance from 12:00 AM to 3:00 PM on January 10, 2025. While the portal is expected to resume operations by 12:00 noon on January 10, the glitch has raised concerns about the timely submission of returns. The January 11 deadline for monthly returns and January 13 deadline for Quarterly Returns with Monthly Payment (QRMP) filers are fast approaching, causing additional pressure on businesses that rely on the system to complete their filings.

The disruption has caused widespread frustration among businesses and tax professionals, as many were aiming to complete their filings by January 10 due to the Saturday deadline, a non-working day for several multinational companies. As per GSTN’s latest communication, an incident report has been sent to the Central Board of Indirect Taxes and Customs (CBIC), urging consideration for an extension of the filing deadline.

Tax experts have raised concerns about the impact of the delays on the Input Tax Credit (ITC) claims. GSTR-1 is a critical form for reporting outward supplies of goods and services, and it forms the basis for the generation of GSTR-2B. Delays in GSTR-1 filing directly affect the timely generation of GSTR-2B, which is crucial for buyers to claim ITC. The delay in receiving ITC could disrupt cash flow for businesses, especially those that make significant input purchases, as they would need to pay GST liabilities in cash until the ITC is credited in later periods.

The GSTN has not yet issued a formal statement regarding the extension of the deadline. However, experts are calling for a possible extension of 2-3 days, particularly since the January 11 deadline falls on a Saturday, making it difficult for many businesses to file on time. The extension would provide temporary relief to sellers, but it may further compress the reconciliation period for buyers, potentially complicating compliance.

The technical issues have raised long-standing concerns about the GST portal’s reliability, particularly during high-traffic periods such as month-end and quarter-end filings. Tax professionals are urging the authorities to implement robust contingency measures and strengthen the infrastructure of the GST portal to avoid such disruptions in the future, ensuring that businesses can meet their tax compliance obligations without delays.

For now, businesses and tax professionals are awaiting an official update from CBIC on the possible extension of the deadline and a resolution to the ongoing technical issues on the GST portal. Taxpayers are advised to monitor official channels for updates and prepare for potential delays in processing their returns.