Kerala GST Filing Crisis: What’s Happening?
The Kerala GST filing crisis has hit thousands of taxpayers this June. A sudden update in HSN code requirements and an unexpected glitch in the GSTN portal have made it tough for traders, businesses and tax consultants to file returns on time.
Here’s a clear breakdown of what’s causing the mess and what you should do next.
Key Reasons for the Kerala GST Filing Crisis
HSN Code Changes:
- As per CBIC’s updated notification, more businesses must now report 4-digit or 6-digit HSN codes mandatorily, even for B2C supplies.
- Many small traders in Kerala were not fully prepared for this sudden change.
GSTN Portal Bug:
- Several users reported that the GST portal auto-fills incorrect HSN codes or does not accept valid ones.
- Even after multiple attempts, returns fail to submit, resulting in penalty risk.
High Dependence on Accountants:
- Kerala’s small traders largely rely on local accountants who now face a huge rush.
- Many filers missed the June 11 GSTR-1 deadline.
Legal Reference:
- Notification No. 78/2020 – Central Tax prescribes mandatory HSN digits for different turnover slabs.
- Kerala GST Department’s circular dated June 2025 highlights the software glitch and promises early resolution.
What Should Kerala Taxpayers Do Now?
Here’s a quick action plan:
Check the Correct HSN Codes:
- Use the official HSN Finder Tool on cbic-gst.gov.in.
Contact GSTN Helpdesk:
- Raise a ticket immediately at selfservice.gstsystem.in.
Keep Screenshots:
- Save all error messages as proof for penalty waiver requests later.
File at Off-Peak Hours:
- Some users found early morning or late-night filing works better.
Expert Tip: Be Ready for More HSN Checks
Experts at Efiletax advise Kerala businesses to update master data regularly in their billing software. Incorrect HSN codes can lead to scrutiny notices and mismatched returns, so fix your invoicing process now.
Possible Relief: Will Late Fees Be Waived?
Many taxpayer associations have urged the Kerala GST Commissioner to grant late fee waiver for June GSTR-1 due to this system fault. Watch Efiletax for the latest updates — relief may be announced soon.
Summary (Snippet):
Kerala’s GST filing crisis stems from sudden HSN code changes and a GSTN bug. Small traders struggle to file returns on time. Check correct HSNs, use the Helpdesk, and keep error proofs to avoid penalties.
FAQ
Q1. What caused the Kerala GST filing crisis?
HSN code updates and a GSTN software glitch made return filing difficult.
Q2. How can I check my HSN code?
Use the CBIC’s official HSN Finder Tool.
Q3. Will late fees be waived?
Relief is under discussion — stay tuned with Efiletax for official announcements.
Stay Compliant with Efiletax
Facing GST filing issues in Kerala? Let Efiletax handle your GST returns smoothly and error-free. Contact us today!