Budget 2023 : Three-Year Time Limit for Furnishing GST Returns

The Budget 2023 has proposed to prescribe a due date for filing returns with an upper limit of three years from the due date. The GST law has established a deadline for submitting returns however this previously lacked an upper limit. 

Now, upper limit (maximum time limit) of due date is proposed to be provided in GST Law which means that returns such as GSTR-1, GSTR-3B, GSTR-9, GSTR-9C, and GSTR-8 cannot be filed after the expiration of three years from their respective due dates.

However, the government has the power to extend the limit by notification, based on the recommendation of the council.

• Sub-section (5) is proposed to be inserted in Section 37 through Clause 132 of the Finance Bill, 2013 to read as follows -

“(5) A registered person shall not be allowed to furnish the details of outward supplies under sub-section (1) for a tax period after the expiry of a period of three years from the due date of furnishing the said details:

Provided 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 details of outward supplies for a tax period under sub-section (1), even after the expiry of the said period of three years from the due date of furnishing the said details.”

• Sub-section (11) is proposed to be inserted in Section 39 through Clause 133 of the Finance Bill, 2013 to read as follows -

“(11) A registered person shall not be allowed to furnish a return for a tax period after the expiry of a period of three years from the due date of furnishing the said return:

Provided 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 return for a tax period, even after the expiry of the said period of three years from the due date of furnishing the said return.”.

• Sub-section (2) is proposed to be inserted in Section 44 through Clause 134 of the Finance Bill, 2013 to read as follows -

“(2) A registered person shall not be allowed to furnish an annual return under sub-section (1) for a financial year after the expiry of a period of three years from the due date of furnishing the said annual return:

Provided that the Government may, on the recommendations of the Council, by notification, and subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish an annual return for a financial year under sub-section (1), even after the expiry of the said period of three years from the due date of furnishing the said annual return.”.

• Sub-section (15) is proposed to be inserted in Section 52 through Clause 135 of the Finance Bill, 2013 to read as follows -

“(15) The operator shall not be allowed to furnish a statement under sub-section (4) after the expiry of a period of three years from the due date of furnishing the said statement:

Provided that the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow an operator or a class of operators to furnish a statement under sub-section (4), even after the expiry of the said period of three years from the due date of furnishing the said statement.”.

  Report