In a welcome move for taxpayers and
tax professionals across the country, the Goods and Services Tax Network (GSTN)
has officially announced an extension of the due date for filing the GSTR-3B
return for the month of September 2025. The statutory deadline of
October 20, 2025, has been extended to October 25, 2025, providing
much-needed administrative relief during the peak of the festive season,
particularly the Diwali festival cluster.
This extension addresses the
significant logistical challenges and compliance crunch faced by businesses,
professionals, and their staff due to the coincidence of the statutory due date
with major national holidays.
Why the Extension Was Necessary: The
Diwali Compliance Crunch
The decision to extend the GSTR-3B
deadline for September 2025 was prompted by representations from various
professional bodies, including the Bombay Chartered Accountant Society (BCAS)
and the Institute of Chartered Accountants of India (ICAI). Their key arguments
highlighted the unavoidable compliance bottlenecks:
Ø Clash with
Major Festival: The standard due date of October 20, 2025, falls immediately
after a weekend and directly coincides with the primary days of the Diwali
festival (around October 20-23, 2025), a period widely observed as a public
holiday cluster.
Ø Restrictive
Compliance Window: Preparing and finalizing FORM GSTR-3B
involves substantial preparatory work:
ü Reconciliation
of GSTR-2B data for eligible Input Tax Credit (ITC).
ü Data entry
and review of transactions.
ü Final fund
arrangement for tax payment.
Ø Logistical
Impossibility: With offices and establishments running with limited staff or
remaining closed during the festival, the effective compliance window for many
taxpayers was virtually non-existent. The extension is viewed as a crucial step
towards ease of doing business and ensuring accurate, stress-free
compliance.
Key Compliance Implications for
September 2025
The filing of the GSTR-3B return for
the month of September is arguably one of the most critical returns of the
financial year, as it marks the final compliance gateway for various annual
adjustments.
1. The Annual Compliance Window
Closure 🔒
The most significant consequence of
the September return is the closing of the statutory window for annual
adjustments pertaining to the preceding financial year (FY 2024-25). As per
Section 39(9) and other provisions of the CGST Act, the last date for declaring
certain adjustments is the due date for filing the return for the month of
September following the end of the financial year.
This means the GSTR-3B for September
2025 is the last chance to:
ü Avail any
eligible Input Tax Credit (ITC) pertaining to invoices/debit notes of
FY 2024-25 that were missed or not claimed earlier.
ü Rectify
errors or omissions in the declaration of outward supplies made
in FY 2024-25.
2. Mandatory Reconciliation
Taxpayers must use this extended
period (up to October 25, 2025) to perform a final, meticulous reconciliation
between their books of accounts, GSTR-3B, and GSTR-2B for FY 2024-25
transactions. Missing this extended deadline means permanently losing the
ability to claim eligible ITC for the previous year.
3. State-Wise Deadlines and QRMP
Scheme
It is essential to note that while the
general monthly filing deadline has been extended, taxpayers must also be aware
of staggered due dates for the Quarterly Return Monthly Payment (QRMP)
Scheme and any state-specific extensions.
ü Monthly
Filers: Due date extended from October 20, 2025, to October 25, 2025.
ü QRMP
Filers (Quarterly Filing of GSTR-3B): These taxpayers (turnover up to ₹5
Cr) have staggered deadlines of October 22nd or October 24th for the July-September
2025 quarter, depending on their state category. While the monthly
extension provides a precedent, QRMP filers must check their specific category
notification.
Consequences of Missing the Extended
Deadline 💸
Despite the extension, failure to file
by the revised deadline of October 25, 2025, will immediately attract
penalties and interest:
- Late Fee:
ü Normal
Returns: ₹50 per day (₹.25 CGST + ₹.25 SGST).
ü Nil
Returns: ₹20 per day ((₹.10 CGST + ₹.10 SGST).
- Interest: 18%
per annum on the outstanding tax liability (paid through the electronic
cash ledger).
The short extension is a vital
reprieve for taxpayers to ensure a compliant close to the annual adjustment
cycle without the added pressure of the festive season. Businesses are strongly
advised to utilize this additional time to complete all reconciliations and
submit their returns accurately and on time.
No comments:
Post a Comment