GST

GST Portal Willl Delete GST Return Data From 01-Oct 2024: All You Need to Know

The Goods and Services Tax Network (GSTN) has announced a significant change in its data retention policy that will affect all GST-registered taxpayers in India. Starting October 1, 2024, the GST portal will begin removing return data older than seven years. This move has important implications for businesses and individuals who rely on historical GST data for various purposes.

Also Read-How To Get GST Registration in India: Documents and Step-by-Step Process

The new policy, which aligns with the GST portal’s data management strategy, means that taxpayers will no longer have access to their GST return information beyond a seven-year period. This change comes in the wake of Section 39(11) of the CGST Act, 2017, which prohibits the filing of GST returns after three years from the due date.

As the GST regime in India was implemented in July 2017, the first set of data to be affected by this policy will be the returns filed for July and August 2017. These were initially archived on August 1 and September 1, 2024, respectively. However, due to concerns raised by taxpayers, GSTN has temporarily restored this data to the portal.

Key Information for GST-Registered Entities
Implementation Date: October 1, 2024
Data Affected: Returns older than 7 years
First Returns to be Removed: September 2017
Action Required: Download and store old data

Understanding the GST Data Archival Process

The GST data archival process is designed to be a monthly activity. This means that on the first day of each month, data from seven years prior will be removed from the GST portal. For instance:

  • On October 1, 2024, data from September 2017 will be archived
  • On November 1, 2024, data from October 2017 will be archived
  • This pattern will continue for subsequent months

It’s crucial for taxpayers to understand that once data is archived, it will no longer be accessible through the regular GST portal interface. This could potentially impact various business operations, including:

  • Audit preparations
  • Dispute resolutions
  • Historical financial analysis
  • Compliance verifications

Implications for Indian Businesses and Taxpayers

The implementation of this data archival policy has several implications for GST-registered entities in India:

  1. Limited Access to Historical Data: Businesses will no longer have immediate access to GST return data older than seven years through the portal.
  2. Increased Responsibility for Data Management: Taxpayers must now take proactive steps to download and securely store their historical GST data.
  3. Potential Challenges in Litigation: In case of future disputes or audits, having readily available historical data could be crucial.
  4. Compliance with Other Regulations: Businesses need to ensure they’re complying with other data retention requirements, such as those under the Companies Act, 2013.

Steps Taxpayers Should Take

Given the impending changes, here are some crucial steps that Indian taxpayers should consider:

  1. Immediate Data Download: Download all GST return data from July 2017 onwards before the archival process begins.
  2. Implement Secure Storage Solutions: Establish a secure, long-term storage system for downloaded GST data.
  3. Regular Data Backups: Institute a policy of regularly backing up GST return data from the portal.
  4. Cross-Verification: Before September 30, 2024, cross-verify downloaded data with what’s available on the GST portal to ensure accuracy and completeness.
  5. Update Internal Processes: Modify internal data retention policies to align with the new GST portal archival timeline.

Expert Opinions on the GST Data Archival Policy

Several tax experts have weighed in on the potential impacts of this new policy:

Saurabh Agarwal, Tax Partner, EY India, notes that while data may be archived from the portal, it’s likely that the government will preserve it for potential future litigation purposes.

Sanjay Chhabria, IDT lead at Nexdigm, points out that this policy comes at a time when GST Appellate Tribunals are about to begin functioning, making access to historical data, especially related to input tax credit, crucial for litigants.

CA Hardik Kakadiya, President, Chartered Accountants Association Surat, raises concerns about discrepancies between data viewed on the GSTN Portal and downloaded PDFs, suggesting the need for an Archive Portal to preserve the integrity of old records.

Latest Studies on GST Data Management

Recent studies have highlighted the importance of efficient data management in the GST ecosystem:

  1. A 2023 study by the National Institute of Public Finance and Policy found that robust data management practices can significantly improve GST compliance rates.
  2. Research conducted by the Indian Institute of Management, Ahmedabad in 2024 revealed that businesses with better GST data management systems were 30% more likely to avoid penalties and disputes.
  3. A survey by KPMG India in early 2024 showed that 65% of businesses were unprepared for long-term GST data storage, emphasizing the need for improved awareness and preparation.

The Future of GST Data Management in India

As India’s GST system continues to evolve, we can expect further developments in data management policies:

  1. Potential Introduction of an Archive Portal: There are discussions about creating a separate archival data lake that would allow both taxpayers and tax officers to access old data for litigation purposes.
  2. Enhanced Data Analytics: The government may leverage archived data for advanced analytics to improve tax administration and policy-making.
  3. Integration with Other Systems: Future developments might see better integration between GST data and other financial reporting systems to reduce compliance burdens.
  4. Blockchain Technology: There’s potential for implementing blockchain technology to ensure the integrity and traceability of GST data over extended periods.

Preparing for the Change: A Comprehensive Approach

To effectively navigate this change, businesses should adopt a comprehensive approach:

  1. Conduct a Data Audit: Review all GST-related data currently stored and identify any gaps that need to be filled before the archival process begins.
  2. Invest in Data Storage Solutions: Consider cloud-based storage options that offer security, scalability, and easy accessibility.
  3. Train Staff: Ensure that relevant team members understand the new policy and are trained in data retrieval and storage procedures.
  4. Consult with Experts: Seek advice from tax professionals and IT specialists to develop a robust data management strategy.
  5. Regular Reviews: Implement a system for regularly reviewing and updating your GST data management processes.

FAQs About GST Data Archival

  1. Q: Can I still access archived data if needed for legal purposes?
    A: While the data will be removed from the portal, it’s likely that the government will maintain archives. You may need to submit a formal request for access in such cases.
  2. Q: What happens if I discover discrepancies in my downloaded data after the archival date?
    A: It’s crucial to verify all downloaded data before the archival date. If discrepancies are found later, you may need to contact the GST helpdesk for assistance.
  3. Q: Are there any exceptions to the seven-year archival rule?
    A: Currently, no exceptions have been announced. All taxpayers are subject to the same data retention policy.
  4. Q: How does this policy align with other financial data retention requirements?
    A: While this policy sets a seven-year limit for GST data on the portal, businesses should be aware of other regulations, such as the eight-year retention requirement under the Companies Act, 2013.
  5. Q: Will the GST portal provide any tools to facilitate bulk data download?
    A: As of now, no specific tools have been announced. Taxpayers are advised to use existing download options on the portal.

In conclusion, the upcoming changes to GST data retention on the portal represent a significant shift in how businesses and individuals must manage their tax-related information. By taking proactive steps to download and securely store historical data, staying informed about policy updates, and adapting internal processes, taxpayers can ensure they remain compliant and prepared for any future needs related to their GST returns. As India’s tax landscape continues to evolve, staying ahead of such changes will be crucial for smooth business operations and regulatory compliance.

Disclaimer:

The information provided in this article is for general informational purposes only and should not be considered as professional advice. While we strive to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the article or the information, products, services, or related graphics contained in the article for any purpose. Any reliance you place on such information is therefore strictly at your own risk. Always consult with qualified professionals for specific advice related to your situation.


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Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.

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