#gst returns

Income Tax Updates June 2020 by My Tax Adviser India

The apex body of Income Tax, The central Board of Direct Taxes (CBDT), has again given some relief to the taxpayers by extending time limits for various compliances. They are given below:

1. The time limit for filing Income Tax Returns for FY 2018-19 (AY 2019-20) has been further extended to 31st July, 2020 from earlier 30th June, 2020.

2. Due date for filing of Income Tax Returns for FY 2019-20 (AY 2020-21) has been extended to 30th November, 2020. Tax Audit Reports can be furnished by 31st October, 2020.

3. The time limit for various tax saving investments/ payments for claiming deduction under Chapter VIA-B, to name a few, PPF, LIC, NSC etc u/s 80C, Mediclaim u/s 80D, Donations u/s 80 G has been extended to 31st July, 2020

4. Self-assessment tax with liability up to Rs. 1 Lakh can be paid till 30th November 2020. However no extension has been granted to those taxpayers having tax liability of over Rs. 1 lakh and accordingly delayed payment would attract the applicable rate of interest u/s 234 A.

5. The date for making investment/ construction/ purchase for claiming roll over benefit/ deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been extended to 30th September, 2020.

6. TDS and TCS returns can now be filed till 31st July, 2020 and accordingly TDS/TCS certificate can be issued by 15th August, 2020 for the FY 2019-20.

7. The reduced rate of interest of 9% for delayed payment of taxes shall not be applicable for the payments made after June 30, 2020.

Businesses involved in GST return filing should pay close attention to their Aggregate Annual Turnover, or AATO, displayed on the GST Portal. GSTN has introduced changes to the AATO functionality for FY 2025-26, with the objective of improving the accuracy and consistency of turnover information across different GST Portal modules.

For FY 2025-26, taxpayers were given the period from 1 July to 31 July 2026 to submit an application for amendment of AATO. From 1 August to 15 August 2026, the amended information is available for review by the jurisdictional Tax Officer.

What Is AATO Under GST?  

Aggregate Annual Turnover represents the aggregate value of supplies associated with a taxpayer across the relevant financial year, calculated according to GST provisions.

The turnover shown on the GST Portal is important because turnover thresholds are used for several GST-related compliance requirements. Businesses should therefore make sure their records support the turnover information reflected on the portal.

For businesses regularly handling GST return filing, an incorrect turnover figure can create confusion when checking the compliance requirements applicable to the business.

What Changed for FY 2025-26?  

Earlier, the GST Portal allowed taxpayers to amend their AATO during May. GSTN revised this process for FY 2025-26 as part of an upgrade to the AATO functionality.

The revised timeline is:

1 July to 31 July 2026: Taxpayer window for submitting AATO amendment applications.

1 August to 15 August 2026: Review period for jurisdictional Tax Officers.

GSTN has also stated that the upgraded functionality is intended to support automatic updating of AATO when subsequent returns are filed after the amendment window.

This makes accurate GST return filing even more relevant because future return data can contribute to keeping turnover information aligned on the portal.

What Should Businesses Review Now?  

Since the taxpayer amendment window has already closed, businesses should not treat 15 August as a fresh deadline for submitting an AATO amendment.

Instead, businesses that submitted an amendment should review their GST records and keep supporting information ready in case clarification is required during the Tax Officer review period.

They should compare the turnover reported through GST returns with their books of accounts and financial records. Businesses should also verify whether the figures used while requesting an AATO correction were accurate.

If any technical difficulty or concern arises, GSTN advises taxpayers to raise a grievance through the GST Self-Service Portal with the relevant details.

Why Accurate Turnover Matters  

Incorrect turnover information can create unnecessary uncertainty when determining GST obligations linked to turnover thresholds.

Regular reconciliation between accounting records and GST return filing data can reduce the chances of such inconsistencies. Businesses should not wait until an annual review to identify major differences between their books and GST filings.

Companies managing multiple registrations should be particularly careful while reconciling turnover information.

Professional compliance support from platforms such as Ebizfiling can also help businesses maintain consistent records while managing their GST obligations.

Conclusion  

The AATO update for FY 2025-26 is another indication that GST compliance is becoming increasingly data-driven. The taxpayer amendment window closed on 31 July 2026, while amended information is under Tax Officer review from 1 August to 15 August 2026.

Form GSTR 1 compliance may require closer invoice-level checks after the introduction of the mandatory Ship-to GSTIN requirement from 1 August 2026. Businesses involved in Bill-to/Ship-to transactions must ensure that the correct GSTIN of the party receiving the goods is captured in the e-invoice and related e-Way Bill data.

The update is especially relevant for manufacturers, distributors, online sellers, wholesalers and businesses that deliver goods to a location or person different from the buyer mentioned on the invoice.

What Is a Bill-to/Ship-to Transaction?  

A Bill-to/Ship-to transaction occurs when one person purchases the goods, but the supplier delivers them to another person or location.

For example, a company may purchase machinery from a supplier and request that it be delivered directly to one of its branches, customers or project sites. In such a situation:

The purchaser is the Bill-to party.

The person or location receiving the goods is the Ship-to party.

The supplier issues the invoice to the purchaser.

The goods are physically delivered to the Ship-to location.

Correct reporting of these details is important because the invoice information may eventually affect e-invoice records, e-Way Bills and Form GSTR 1 reporting.

What Changes From 1 August 2026?  

From 1 August 2026, the Ship-to GSTIN must be captured as a mandatory data element in applicable Bill-to/Ship-to and combination transactions where the Ship-to party is registered.

When the Ship-to party is unregistered or a GSTIN is not applicable, businesses may enter “URP” in the relevant field. GSTN has also introduced system validations to verify the GSTIN and related address information.

Where e-invoice and e-Way Bill generation are completed together, the Ship-to GSTIN becomes conditionally mandatory when Ship-to legal name and address details are provided.

For e-Way Bills generated through the Invoice Reference Number, a GSTIN field has also been introduced under the shipping details.

Important Validations Businesses Should Know  

The GST system may reject or flag the transaction when:

The Ship-to GSTIN is invalid.

The Ship-to GSTIN is missing despite providing shipping details.

The Bill-to and Ship-to GSTINs are the same in a Bill-to/Ship-to transaction.

The Ship-to state code does not match the GSTIN.

The PIN code does not belong to the stated Ship-to state.

The Ship-to GSTIN must therefore represent the actual registered person receiving the goods. Using the purchaser’s GSTIN again merely to complete the field may result in a validation error.

How Does It Affect Form GSTR 1?  

Form GSTR 1 is the statement through which registered taxpayers report details of their outward supplies. E-invoice information is generally transmitted to the GST system and used for the preparation of return data.

Although the new requirement primarily affects e-invoice and e-Way Bill generation, businesses should review the information appearing in Form GSTR 1 before filing. Incorrect buyer details, place-of-supply information or invoice values may create reconciliation problems for the supplier and recipient.

Businesses should not assume that successful IRN generation automatically confirms that every field in the return is correct.

Steps Businesses Should Take  

Businesses should update their ERP, billing software and API integrations before generating invoices under the revised system. They should also:

Collect the correct GSTIN of the Ship-to party.

Verify GSTIN, state and PIN-code details.

Use “URP” only where it is genuinely applicable.

Reconcile e-invoice data with e-Way Bills.

Review auto-populated invoices before filing Form GSTR 1.

Train billing and dispatch teams on Bill-to/Ship-to transactions.

Conclusion  

The mandatory Ship-to GSTIN requirement improves the accuracy of invoice and goods-movement data. However, it also creates an additional responsibility for businesses to maintain correct customer and delivery records.

A wrong GSTIN can delay invoice generation, cause e-Way Bill errors and affect return reconciliation. Businesses should update their internal systems and invoice-verification process from 1 August 2026.

Looking to understand GST laws for your business? This guide explains GST registration, return filing deadlines, Input Tax Credit rules, penalties, and tax compliance requirements. Stay compliant with expert insights on GST Return Filing Online, Income Tax Return Filing Services, and TDS Return Filing Online.

Goods and services tax (GST) has revolutionised the indirect tax system by subsuming various indirect taxes into one tax in India. For companies, following the GST rules is mandatory, and one of the crucial compliances is filing a GST return in India. Timely and accurate filing of GST returns provides transparency, helps the business to avoid penalties, and also assists in availing input tax credit. 

What is GST Return Filing?

Filing GST returns is the process of reporting the details of sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input credit) to the government by the registered taxpayers. These returns are filed online on the GST portal. The data contained in the returns helps the tax authorities to compute the tax payable by the business and verify payment of the correct amount of tax.

Businesses functioning in India must know about GST return filing in India as it impacts their financial records, tax credits, and compliance status. Every registered taxpayer must file the GST returns as per their category and turnover.

Types of GST Returns

Types of GST returns that a business may have to file are varied according to its type of registration and the nature of its business. Some returns, such as GSTR-1, GSTR-3B , and GSTR-9, are more common.

Reporting of outward supplies or sales made by a business during a tax period is done in GSTR-1. This return is helpful for recording all invoices raised to customers and is generally submitted monthly/quarterly as per the eligibility of the taxpayer.

GSTR-3B is a simple return that gives us a view of total sales, input tax credit utilized, and the liability of the business for tax. It is usually a monthly return and is required to be filed to maintain GST compliance.

GSTR-9 is a kind of yearly return in which you need to provide details of all your transactions for the whole year. Businesses need to make sure that the information furnished in this return reconciles with that in the monthly or quarterly returns.

Importance of GST Return Filing for Businesses

Filing GST returns punctually is necessary in India for many reasons. 1. Compliance with Government Laws: Timely returns filing allows a business to remain compliant with government rules and regulations, preventing it from being liable for heavy fines, late fees, etc. Late filing of returns may also lead to interest charges on the tax amounts due, further burdening the finances.

Secondly, proper filing of GST returns helps in business to claim input tax credit. Input tax credit allows businesses to offset their tax liability by taking credit for taxes paid on procurements. Treating these credits or otherwise losing them without the right return filing is a business risk of potentially foregoing the benefits of those credits.

Thirdly, routine return processing enhances financial visibility and facilitates the regular keeping of business transaction records. This is good for audits, for financial planning, and for growing the business.

GST Return Filing Process

Filing of GST returns in India is done electronically through the GST portal. The businesses have to log in using their GST credentials and submit the required information for the applicable return form. It usually consists of declaring sales invoices, purchase details, tax payments, and claims on input tax credit.

Want us to make your templates for you? Submit once you‘ve entered everything, a nd business can double-check details and file electronically. Upon successful submission, the return is logged into the GST System and becomes a part of the compliance record of the taxpayer.

Many companies rely on professional tax consultants or accounting software for assistance to ease the filing process and to help ensure accuracy.

Common Challenges in GST Return Filing

Even with the digital system, businesses occasionally experience difficulties in submitting GST returns. These could be related to wrong invoice details, a mismatch in purchase and sales data, or certain technical snags on the GST portal. 

The procedure might be complicated for small business owners and startups, as there are different types of returns, and they have to comply with many rules. Thus, process knowledge or professional help, or both, can help businesses to handle GST liabilities more effectively.

Conclusion

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