GSTN Implements GST Data Archival Policy from October 1, 2024

Introduction   

(Read: GSTN Implements Data Archival Policy from October 1, 2024 – Taxpower GST Software Solves GST Data Archival Challenge.)

The Goods and Services Tax Network (GSTN) has recently issued a crucial guideline regarding the archival of GST returns data, effective from October 1, 2024. This new policy, rooted in Section 39 (11) of the CGST Act, 2017, and detailed in Notification No. 28/2023 – Central Tax dated July 31, 2023, mandates that taxpayers cannot file their GST returns after three years from the due date. Additionally, the GST portal will retain data for viewing purposes for only seven years. This significant change necessitates immediate action from businesses to ensure continuous access to their historical GST data.   

Understanding the New GSTN Guidelines – GST Data Archival Challenge ?

  1. Three-Year Filing Limit: As per Section 39 (11) of the CGST Act, 2017, taxpayers are prohibited from filing their GST returns after three years from the due date of furnishing the said return. This provision, effective from October 1, 2023, aims to streamline the filing process and ensure timely compliance.   
  2. Seven-Year Data Retention Policy: The GST portal will retain data for viewing purposes for only seven years. This means that starting from August 1, 2024, data older than seven years will be archived monthly. For instance, data for July 2017 was archived on August 1, 2024, and data for August 2017 followed on September 1, 2024. This archival process will continue monthly, making data for September 2017 inaccessible from October 1, 2024 [1].   
  3. Monthly Archival Process: The archival of GST returns data will be a continuous monthly activity. Taxpayers are advised to download their relevant data from the GST portal for any future reference, as data beyond seven years will no longer be accessible.

Impact on Businesses   

The archival of GST returns data poses significant challenges for businesses that rely on historical data for compliance, reconciliation, audits, and financial planning. Without access to this data, companies may face difficulties in maintaining accurate records and ensuring compliance with GST regulations.   

How TaxPower GST Can Help 

TaxPower GST, an on-premise GST compliance software, offers a robust solution to this challenge. By integrating seamlessly with the GSTN portal, TaxPower GST downloads and stores GSTR data in a local SQL server database. This ensures that once the data is downloaded, it remains available to users at all times, regardless of the archival policies of the GST portal.   

Key Benefits of Using TaxPower GST   

Uninterrupted Access to Historical Data: 

With TaxPower GST, users can access their GST data anytime, even beyond the seven-year limit imposed by the GSTN portal. This ensures that businesses have continuous access to their historical data for compliance, reconciliation, and other purposes.   

Enhanced compliance and reconciliation: 

The software facilitates easy compliance and reconciliation by providing continuous access to all necessary data. This helps businesses stay compliant with GST regulations and avoid potential penalties.   

Data Security and Control: 

Storing data locally ensures that businesses have complete control over their information, enhancing data security and reducing dependency on external portals. This also mitigates the risk of data loss due to the archival policies of the GST portal.   

Conclusion   

In the wake of the new GSTN guidelines, it is more important than ever for businesses to have a reliable solution for managing their GST data. TaxPower GST offers a comprehensive and secure way to ensure continuous access to your GST returns data, helping you stay compliant and efficient. Don’t let the new archival policies disrupt your business operations—choose TaxPower GST for uninterrupted access to your GST data.   

Call to Action   

Ensure your business remains compliant and efficient. Get TaxPower GST today and secure your GST data for the future. Visit TaxPower GST for more information. 

Referenced from the 24 September 2024 announcement on the GSTN portal.