It has been observed that the number of taxpayers who have filed FORM GSTR-3B is substantially higher than the number of taxpayers who have furnished FORM GSTR-1. Non-furnishing of FORM GSTR-1 is liable to late fee and penalty as per the provisions of the GST law. In order to encourage taxpayers to furnish FORM GSTR-1, a one-time scheme to waive off late fee payable for delayed furnishing of FORM GSTR-1 for the period from July, 2017 to September, 2018 till 31.10.2018 has been launched.

In this regard, the due date for furnishing FORM GSTR-1 for the period from July, 2017 to September, 2018 has been extended till 31^st October, 2018 for all registered persons having aggregate turnover above ₹ 1.5 crores including the registered persons in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry). For taxpayers having aggregate turnover up to ₹ 1.5 crores, the due date for furnishing FORM GSTR-1 for the quarters from July, 2017 to September, 2018 has been extended till 31^st October, 2018. Notification Nos. 43 and 44/2018 – Central Tax dated 10^th September, 2018 have been issued in this regard. For registered persons having aggregate turnover up to ₹ 1.5 crores in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry), the due date for furnishing FORM GSTR-1 for the quarter July, 2018 to September, 2018 would continue to remain as 15^th November, 2018 as notified vide notification No. 38/2018-Central Tax dated 24^th August, 2018.

Further, for those taxpayers who will now be migrating to GST as per the procedure specified in notification No. 31/2018-Central Tax, dated 06.08.2018, the last date for furnishing the details of outward supplies of goods or services or both in FORM GSTR-1 and for filing the return in FORM GSTR-3B for the months of July, 2017 to November, 2018 has been extended till 31.12.2018. Notification Nos. 45, 46 and 47/2018 – Central Tax dated 10^th September, 2018 have thus been issued for extension of dates for filing FORM GSTR-3B.

It is hereby clarified that as per the provisions of section 16 (4) of the Central Goods and Services Tax Act, 2017, the registered person shall not be entitled to take input tax credit in respect of any invoice after the due date of furnishing of the return for the month of September following the end of financial year to which such invoice pertains; or furnishing of the relevant annual return, whichever is earlier. The taxpayers are thus, advised to furnish their returns on time to ensure that input tax credit does not become time barred.

Late fee waiver for delayed GSTR 1 filing extended with revised deadlines and transitional relief for migrating taxpayers. A one time late fee waiver and extension of due dates for furnishing FORM GSTR 1 for July 2017-September 2018 to 31 October 2018 has been announced, with differentiated treatment for taxpayers above and up to the stated aggregate turnover threshold and specific location based provisions. Separate extensions permit taxpayers migrating under the prescribed procedure to furnish FORM GSTR 1 and file FORM GSTR 3B for July 2017-November 2018 by 31 December 2018. The release cautions that input tax credit claims remain subject to the time bar under section 16(4) of the CGST Act and advises timely filing to protect credit entitlement.