GST returns to become time-barred after three years from early 2025

GST Network on Tuesday said beginning early next year, GST taxpayers will not be able to file monthly and annual GST returns after three years of the original filing due date.

In an advisory, Goods and Services Tax Network (GSTN) said GST outward supply returns, besides returns related to payment of liability, annual returns and tax collected at source, will become time-barred after the expiry of a period of three years from the due date of furnishing the said return.

"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," GSTN said.

AMRG & Associates Senior Partner Rajat Mohan said the recent GSTN update concerning the barring of GST return filings post a three-year deadline introduces a significant compliance shift.

"This move aligns with a broader intent to ensure timely compliance, enhance data reliability, and potentially reduce the backlog of unfiled returns within the GST system. By capping the period for delayed filings, taxpayers are motivated to reconcile and rectify their records promptly.

"However, it may also create challenges for taxpayers with historically unfiled returns, especially those facing administrative or logistical constraints in consolidating older records," Mohan said.

Businesses are advised to proactively audit their filing history and address any outstanding returns within the remaining window, he said, adding that the action will prevent future compliance issues and penalties that may arise once the portal enforces this three-year limit.