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Phased Archival of GST Data: What Taxpayers Need to Know and How to Stay Prepared

By Taxurban Admin on 26 Sep 2024

As the Goods and Services Tax (GST) regime evolves in India, the GST Network (GSTN) is now implementing a phased archival of older GST data. This process is aimed at optimizing system performance, managing the increasing volume of data, and ensuring smooth operations for businesses and tax professionals. However, the archival process brings with it certain implications that taxpayers need to be aware of.

In this blog, we will explore the GST data archival process, its impact on taxpayers, and provide actionable steps to ensure that businesses are well-prepared.

What is GST Data Archival?

GST data archival refers to the systematic storage of older GST returns and associated data into a secondary location within the GST portal. The purpose of archiving is to help streamline system performance, especially as the volume of returns and records grows every month.

For businesses and tax professionals, understanding this process is critical. Once data is archived, it will no longer be available on the main dashboard but can still be accessed through the “Archived Returns” section of the GST portal.

Timeline of Archival: A Step-by-Step Overview

The GST archival process began on October 1, 2024, and will continue on a monthly basis. It started with the GST returns filed for July 2017, which marked the introduction of GST in India. The archiving will proceed month by month, eventually covering all older data.

Here is a brief timeline:

July 2017 returns archived starting October 1, 2024.
Each subsequent month will be archived in chronological order over the next few months.
The exact deadlines for future archival dates will be communicated by the GSTN, so businesses should remain vigilant and updated on these timelines.

Taxpayers should take note of the months already archived, as this data will no longer be available on the main dashboard. Upcoming deadlines are crucial, and businesses must be prepared to act before their data is archived.

Impact of Archival on Businesses and Taxpayers

Once data is archived:

GST returns and related data from those months will no longer be readily accessible on the main GST dashboard.
Archived data can still be accessed, but only from the “Archived Returns” section of the GST portal.
Retrieving archived data may cause delays, as the system processes older returns from the archive, which could affect your ability to quickly access information for audits or reconciliations.

These changes mean that businesses and tax professionals need to be proactive in managing their older GST data to avoid disruptions or delays in future audits and filings.

Why It’s Important to Act Now: Download and Store Key Data

With archival deadlines approaching, businesses should download and store their GST returns and related records well in advance. Keeping digital copies of these records will ensure easy access during audits, reconciliations, or any potential disputes.

How to Download Key GST Data

Here’s a simple guide on how to download your GST returns:

Log in to the GST portal using your credentials.
Navigate to the ‘Returns’ section on the dashboard.
Select the return period for the data you wish to download.
Choose the appropriate format (PDF, Excel) and save the file securely on your system.
Make backups on cloud storage or external drives to ensure data security.

By regularly downloading your GST returns, you can avoid the hassle of accessing archived data and mitigate the risks associated with data delays.

How to Access Archived GST Data

Even after archival, GST returns can be retrieved from the GST portal’s Archive section. Here’s how to do it:

Log in to the GST portal.
Go to the ‘Services’ menu and click on ‘Returns’.
In the Returns section, navigate to ‘Archived Returns’.
Select the relevant return period to retrieve the archived data.
Download the data for future use.

It’s important to note that while the data is still accessible, it may take longer to retrieve due to the archival process.

The Mismatch Risk: Reconciling Archived Data with Current Filings

One of the major risks of GST archival is the possibility of data mismatches between older and current filings. Common issues arise when bank statements, invoices, and income tax returns are not properly reconciled with archived GST returns, leading to compliance issues during audits.

To prevent mismatches:

Regularly reconcile your GST returns with your bank statements, income tax filings, and invoices.
Ensure that all input tax credits (ITC) and turnover details are properly matched with the corresponding GST returns to avoid discrepancies.

A failure to reconcile records can lead to audit complications, potential penalties, and disruptions in your business operations.

Future Implications: Regular Archival of Older GST Data

As the GSTN continues to archive older GST data, businesses will need to stay prepared for the ongoing archival process. This means that returns from up to 7 years ago will be archived over time, and staying updated with GST notifications is crucial for compliance.

Moving forward, businesses should implement regular tax data management practices, including downloading, storing, and reconciling GST returns as a routine part of their compliance strategy.

How Taxurban Can Help

At Taxurban, we specialize in assisting businesses and taxpayers with GST data management, including handling the challenges of archived returns. Our services include:

Downloading and storing old records: Ensuring that your past GST returns are secure and easily accessible.
Managing GST-related audits: We help reconcile your GST returns with your bank statements, invoices, and tax filings to avoid any compliance issues.
Consulting on future filings: We provide guidance on staying up to date with the latest GST archival notifications and deadlines.

With our help, you can avoid the complexities of accessing archived GST data and ensure smooth, error-free tax filing.

Conclusion: Stay Organized and Ahead of Deadlines

As the GSTN continues to archive older data, it’s more important than ever for businesses and taxpayers to stay organized. Downloading and storing key data ahead of archival deadlines will ensure that you are always prepared for audits, reconciliations, and any future compliance requirements.

Don’t wait until your GST data is archived! Contact Taxurban today for expert assistance in managing your GST returns, staying compliant, and navigating the complexities of tax audits.