ITR Filing: If you also have a company or you are a businessman and pay GST (Goods and Services Tax), then this news is extremely important for you. GST Network (GSTN) is going to implement some big changes from the tax period of July 2025. These changes are related to the GST returns of companies, especially for those traders who take or want to take input tax credit (ITC). These new rules in the process of filing GST returns will directly affect your financial plans and compliance. Let us know what these changes are and how they will affect you.
Will not be able to file returns after 3 years
The first and biggest change is related to the time limit of GST return filing. From now on, a limit of three years has been fixed for all types of filing related to GST returns. This change will be effective from the tax period of July 2025. This means that this rule will apply to the return filed in August 2025 for the tax period of July 2025.
Many types of returns are filed in GST, which include:
GSTR-1: This is for details related to sales or supplies.
GSTR-3B: This is for tax payment and ITC claim.
GSTR-9: This is an annual return.
This three-year period will apply to all these returns. The GST Network (GSTN) has been informing the business world about this change since October last year, which is now being strictly implemented. GST Network says that the purpose of this change is to make the system more efficient, reduce the burden of old and incomplete returns, and motivate everyone to be more disciplined.
What will happen if the return is not filed in 3 years
There is no provision to extend the 3-year window in the new rule. This simply means that if you do not file your return in 3 years, then you will have no option to file it further.
The biggest loss of this will be to those traders who want to take input tax credit (ITC). If you do not file the return on time, you may lose ITC. This means that you will not get credit for the tax you have paid on your input purchases, which will increase your cost and may reduce profit. This could be a significant financial blow for businesses that rely heavily on ITC.
Auto-populated figures of GSTR-3B will not change
GSTN has made another important change, and that too will be applicable from the tax period of July 2025. Now the auto-populated figures in the form number GSTR-3B related to tax payment cannot be changed. Till now, these data were editable, that is, taxpayers could change the data already present in this form as per their need.
However, a new form GSTR-1A has been introduced to correct the mistakes made in the filing. If someone wants to make changes in the information filled in GSTR-1 (related to supplies), then he can use GSTR-1A. This change made in GSTR-1A will be automatically populated in GSTR-3B. This step has been taken to increase the accuracy of data and make the return filing process more transparent.