In a significant compliance development, the Government has implemented a time limit of three years for filing various GST returns. This measure, introduced via the Finance Act, 2023 (8 of 2023) dated 31st March 2023, came into effect from 1st October 2023, through Notification No. 28/2023 – Central Tax, dated 31st July 2023.
What Does the Law Say?
As per the amended provisions, taxpayers will not be allowed to file GST returns after the expiry of three years from the due date of furnishing the return. This restriction applies to returns under:
- Section 37 – GSTR-1 (Outward Supplies)
- Section 39 – GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, etc. (Monthly/Quarterly Returns)
- Section 44 – GSTR-9 (Annual Return)
- Section 52 – GSTR-8 (Tax Collected at Source)
Returns Covered Under This Rule:
- GSTR-1
- GSTR-3B
- GSTR-4
- GSTR-5
- GSTR-5A
- GSTR-6
- GSTR-7
- GSTR-8
- GSTR-9
Implementation Timeline
An initial advisory dated October 29, 2024, had already warned taxpayers about this upcoming change, stating:
“The said changes are going to be implemented in the GST portal from early next year (2025). Hence, the taxpayers are advised to reconcile their records and file their GST Returns as soon as possible if not filed till now.“
Now, the restriction will be technically enforced on the GST Portal starting from July 2025 Tax Period. Once enforced, the system will not permit late filing of returns beyond the 3-year limit.
What Should Taxpayers Do?
All taxpayers are strongly advised to:
- Review and reconcile their past GST records.
- File any pending GST returns that are approaching or have crossed the 3-year mark without delay.
- Ensure compliance to avoid loss of input tax credit (ITC), penalties, and legal complications.
Don’t wait till July! File your pending GST returns now and stay compliant.
For professional help in reconciling and filing, consult a GST expert today.
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