{Blog} You have to file your GSTR 1 immediately to avoid bitterness in relationship with the customer.

GST DOST's BLOG

{Blog} You have to file your GSTR 1 immediately to avoid bitterness in relationship with the customer.
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About Due Date

We believe that you will be aware that the monthly filer of GSTR 1 has to file his GSTR 1st March 2020 by 10th July, while those who file quarterly returns have a due date of 17th July.

Surprising Facts

The Government Statistics about non-filler of return is shocking because even today, many taxpayers have not been filing returns for a long time. We have also researched in this regard, but in most of the cases, it is a behavioural problem, not a financial problem. Most people have a habit of procrastination, i.e. to defer today's task to tomorrow. Not only that, but they also are not taking the impact of the business of non-filing of return seriously.

Impact of Non-FIling of GSTR 1

For your information, according to Rule 36(4) of CGST Rules 2017, the taxpayer can only claim upto 110% of the ITC reflected in his GSTR 2A. So, suppose, if you do not file your GSTR 1 within time, then there is also a possibility that they may not claim amount of GST reflected in your Tax Invoice, which would increase his working capital requirement.

But the problem becomes acute when a taxpayer does not file his GSTR 1. If GSTR 1 is not filed, then corresponding ITC will not be reflected in GSTR 2A. And if ITC is not reflected in GSTR 2A, then there is no confusion that the recipient is not able to enjoy ITC even though he had fulfilled all his statutory obligation.

We believe that you are aware, yet inform you that due to COVID, the Government has amended Rules 2019. For February to August, compliance of Rules 36(4) will not be checked on the month to month basis, but on a single cumulative periodical basis, i.e. from February to August.

Today's Customer is more cautious and he is not ready to bear any loss.

Today, in this phase of unlocking, most of the businesses are going through difficulties. Everyone is trying every possible way to earn, to grow the business. Not only that business people are also trying to cut down their spending to the extent possible but without affecting the ordinary course of business. Apart from this, they are also adopting how they can make reasonable adjustments in their standard of living so that they can save to the extent possible.  So, imagine if anyone can harm anyone in today's time?

I believe No.

Our View

So we believe that if you want to avoid bitterness in relationship with your Customer, stay in business, to move forward, then you have to file your GSTR 1 and that too within the due date. So, we suggest that you do not wait for the due date—file Today.