The extension of key dates under GST will benefit seasonal businesses and provide a breather for tax professionals.
While major policy decisions in Goods and Service tax take place only through GST council, Union Budget 2022-23 has provided the much-needed changes in the statute, said Smita Singh, Partner, Indirect Taxes, Customs and Trade Laws, S&A Law Offices.
As per industry demands, the time limit for availment of input tax credit has been extended for a particular financial year from six months to nine months from the end of the financial year. The time limit for issuance of credit notes has also been extended to nine months, implying that credit notes for a particular financial year may be issued up to 30th November of the subsequent financial year instead of earlier limit of 30th September.
Further, the time limit for carrying out any rectifications in GSTR-1/3B for a particular financial year has also been revised to 30th November.
Singh said the extended nine-month window for finalization of GST returns in respect of a particular financial year is a breather not only for businesses but also tax professionals who are reeling under stringent compliance burden under GST. The change in the deadline for issuance of credit notes will particular benefit seasonal businesses who have majority sales towards the end of the financial year.