GSTN restores July, August 2017 GST returns data; experts suggest ERP upgrade, ETCFO – industrialupdates
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In a significant move to address the challenges faced by taxpayers, the Goods and Services Tax Network (GSTN) has announced the restoration of GST returns data for July and August 2017 on the Common Portal. This decision follows an advisory issued on September 24, 2024, regarding the archival of return data after seven years as part of a compliance strategy.
Addressing Concerns Over Archived Data
The archival policy, which began implementing data retention on a monthly basis, raised concerns among businesses needing access to historical records. The return data for July and August 2017 was archived as of August 1 and September 1, respectively, leaving many stakeholders struggling to retrieve essential financial information.
In response to the feedback from the trade, GSTN has taken a proactive step by restoring the archived data. The advisory stated, “In view of the requests received from the trade due to the difficulties faced, data has been restored back on the portal.”
Taxpayers are encouraged to download and save this information for future reference, especially for cases with potential spillover effects. GSTN has assured users that it will provide advance notice before re-implementing the archival policy.
Insights from Tax Experts on Data Management
Parag Mehta, partner at N.A. Shah Associates LLP, emphasized the importance of data accessibility for taxpayers. He stated, “While GSTN will restore the data for July and August, there is a possibility of future archiving.”
This proactive measure encourages the trade to download their records, which is essential given the vast volume of data submitted across the countryParag Mehta, partner at N.A. Shah Associates LLP
Aditya Singhania, founder of Singhania’s GST Consultancy, elaborated on the legal framework surrounding data management. “Regarding data archival advisories on the GST portal, to my mind, Article 279A has the powers to recommend on matters related to GST. This matter was duly placed before the GST Council and approved in its 49th meeting,” he noted.
Data will remain accessible to both taxpayers and officers until cases are resolved. Archiving is only considered after the limitation period has lapsed, but deletion occurs seven years after the tax periodAditya Singhania, founder of Singhania’s GST Consultancy
Importance of Data Safeguarding
Singhania also highlighted the critical balance between data retention and compliance with the Information Technology Act, 2016. “The safeguarding of data is of paramount importance, especially in light of the Information Technology Act and other applicable Data Protection and Security Standards by GoI,” he asserted.
Compliance and Responsibility of Taxpayers
Singhania pointed out that the onus of maintaining records rests on the taxpayers. “Section 35(1) requires a taxpayer to maintain accounts and records, including details of output taxes paid and ITC availed. This clears the fact that accounts and records are not maintained at the Common Portal. The onus is on taxpayers, for which GSTN is providing necessary facilities to download the filed records instantly,” he stated. He added that the advisory serves as guidance akin to a tax consultant informing taxpayers about compliance with the law.
Recommendations for Businesses Moving Forward
Rajat Mohan, Executive Director at MOORE Singhi, praised GSTN’s responsive approach. “The recent advisory from GSTN concerning the reinstatement of archived GST returns data from July and August 2017 exemplifies a proactive and flexible response to the feedback from various stakeholders,” he stated. Mohan emphasized that this initiative addresses significant challenges businesses encounter when accessing older but essential financial records.
By restoring this data and committing to a pre-notified re-implementation of the archival policy, GSTN underscores its dedication to harmonizing regulatory compliance with the operational requirements of businessesRajat Mohan, Executive Director at MOORE Singhi,
Mohan also recommended that businesses consider upgrading their ERP systems to ensure a comprehensive record of data from the portal.
Questions Surrounding GSTN’s Advisory Authority
Mehta raised questions about GSTN’s authority to issue advisories, noting, “GSTN, which only manages the portal, has powers to issue advisory. Further, issuing advisories on a regular basis has the backing of CBIC and the GST Council.”
The Need for Oversight in Advisory Issuance
Mohan also cautioned that GSTN has issued advisories that could potentially carry extensive legal ramifications, which may extend beyond its authority. “To prevent any non-compliance or deviation from established GST regulations, it would be prudent for GSTN to have its advisories reviewed by the GST Council or CBIC. This step would ensure that all communications align with the broader tax policy framework and uphold the integrity of GST administration.”
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