How Does This Revised Rule Impact Your GST Return Filing From July 1?

The Goods & Services Tax portal will permanently block the filing of GST return, which is more than three years past its stipulated due date, with effect from July 1, 2025.

This change rooted in amendments made via the Finance Act, 2023. If you're business has any pending GST returns older than three years, the time to rectify this error is before the set deadline. After this deadline, returns will not be accepted, causing input tax credit loss, penalties, and legal compliances.

What’s Being Altered?

Currently, the GST system allowed delayed return filings regardless of how late subject to penalties and interest. From July 2025 onwards, the GST portal will automatically restrict taxpayers from filing returns that are overdue by more than 3 years from their due date.

Applicable to the Following GST Returns:

• GSTR-1 (Outward supplies)
• GSTR-IFF
• GSTR-3B (Summary return & tax payment)
• GSTR-4 (Composition scheme)
• GSTR-5 & 5A (Non-residents & OIDAR)
• GSTR-6 (Input Service Distributor)
• GSTR-7 & 8 (TDS & TCS returns)
• GSTR-9 (Annual return)
• GSTR-9C

Taxpayers are strongly advised to reconcile records and file any pending GST returns immediately, especially those that are nearing or have crossed the 3-year deadline.

Once blocked, returns cannot be reopened or filed through any redressal mechanism.

Why Is GST Return Filing Being Time-Barred After 3 Years?

The government’s objective behind this change includes:

Ensuring timely return filing across the GST network
Eliminating compliance backlogs and ITC mismatches
Reducing litigation and tax disputes
Bringing finality to the GST compliance cycle
This change is carried under Sections 37, 39, 44, and 52 of the Finance Act, 2023 and has full legal backing.

What This Means for Business Owners? 

Suppose you missed filing your GSTR-3B for July 2022, which was due on August 20, 2022. According to the new rule, you must file it by August 20, 2025. After that, the GSTN portal will block the return permanently.

You will:

• Be unable to claim Input Tax Credit (ITC) for that tax period·
• Be unable to make corrections for that tax period
• Risk affecting your clients’ ITC claims, resulting in loss of business

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What Happens If Taxpayers Miss the 3-Year GST Filing Deadline?

The GST portal will permanently disable that return period
You will lose all tax credits for that period