Taxpayers will not be allowed to file Goods and Services Tax (GST) returns after three years of the due date, starting in July 2025. This means that, assuming there is no extension of a deadline, the farthest back period that a month's GST return can be filed is June 2022, a new direction from the Goods and Services Tax Network (GSTN) said. Applicability Though the move is slated to be effective from August 2025, a deadline has been fixed to file several GST Returns, according to the report.
The action follows the amendments effected by the Finance Act, 2023, to achieve more certainty and finality in GST compliance.
"The returns will be barred from filing after the expiry of three years. The said restriction will be implemented on the GST portal from the July 2025 tax period," said a recent advisory issued by GSTN, as quoted by the PTI report.
Rajat Mohan, Senior Partner at AMRG & Associates, voiced concerns to PTI, warning that "the absence of a redressal mechanism for exceptional cases could lead to permanent denial of Input Tax Credit and financial setbacks."
Mohan also pointed out that the new rule effectively closes the return filing window permanently after the three-year mark. While this will bring predictability and reduce retroactive compliance issues, it could also have a disproportionate impact on those entangled in prolonged litigation or who experienced genuine oversights.
Nevertheless, GSTN is urging businesses to act without delay by reconciling and submitting any pending returns before the deadline. As early as October, the network flagged the upcoming change so taxpayers could prepare in advance.
In a separate update, GSTN also announced that starting from the same period, the liability values auto-populated in Form GSTR-3B will no longer be editable. Instead, corrections will need to be made through a new form, GSTR-1A, before finalising the GSTR-3B for the month.
Under the current system, businesses can adjust tax liability figures directly in GSTR-3 B. The new process requires them to correct any mismatches or errors in outward supply data in GSTR-1 or the Invoice Furnishing Facility (IFF) and then update those changes through GSTR-1A. This amendment is designed to enhance accuracy and ensure that the liability data filed is consistent across forms.
