Starting July 2025, Goods and Services Tax (GST) compliance will undergo a shift with two key changes: locking of GSTR-3B forms and a three-year deadline for filing returns. These changes, introduced by the GST Council, aim to improve accuracy and transparency in return filing, while reducing mismatches and fraudulent claims.
GSTR-3B will be locked after auto-population
From July 2025 return period (filed in August), the GSTR-3B form will become non-editable once the tax details are auto-populated. Taxpayers will no longer be allowed to manually alter figures related to outward supplies and tax liability in the form.
Instead, all such corrections must be made using the GSTR-1A form before filing GSTR-3B.
Only one correction per tax period will be allowed. Manual entries will still be permitted for reverse charge transactions.
The move is aimed at ensuring consistency between GSTR-1 (which records outward supplies) and GSTR-3B (used to pay tax), reducing revenue leakages due to mismatches.
GST returns time-barred after 3 years
A second major change takes effect on July 1, 2025. Taxpayers will not be able to file returns that are more than three years past their due date. This restriction will apply to all GST return forms including GSTR-1, 3B, 4, 5, 5A, 6, 7, 8, and 9.
Taxpayers with pending returns for older periods have been advised to complete their filings before the cut-off date. Failing to do so could result in permanent loss of input tax credit (ITC) or other consequences. Exceptions to this rule may be made only through a special recommendation by the GST Council.
Compliance becomes more system-driven
These changes mark a shift toward a more automated and disciplined GST compliance environment. With GSTR-3B locked and old returns time-barred, businesses will need to ensure that their data is accurate and timely across all GST forms.
Experts warn that any delay in filing or error in GSTR-1 will automatically carry over to GSTR-3B, leaving no room for later corrections. This could impact buyers’ ability to claim ITC if changes are made after GSTR-2B is generated—typically around the 14th of every month.
What businesses should do
- File GSTR-1/IFF early and accurately each month.
- Use GSTR-1A to make corrections before filing GSTR-3B.
- Declare reverse charge entries manually in GSTR-3B.
- Ensure no pending returns remain older than three years by June 30.
