Starting July 2025, the Goods and Services Tax Network (GSTN) will enforce a strict deadline that prohibits taxpayers from filing returns more than three years past their due date. This move, enabled by an amendment in the Finance Act, 2023, applies to key GST returns such as GSTR-1, GSTR-3B, and GSTR-9. In a recent advisory, the GSTN urged taxpayers to reconcile their records and file any pending returns before the deadline to avoid losing access to the return filing facility.
CBIC Pushes for Timely GST Filing Amid Stricter Compliance Rules
The Central Board of Indirect Taxes and Customs (CBIC) has also instructed field officers to raise awareness among taxpayers about this new compliance timeline. The intent is to foster a more disciplined tax ecosystem, ensure timely filing, and reduce instances of long-pending returns.
Tax experts believe this step will significantly impact businesses. Saurabh Agarwal, Tax Partner at EY, stressed that failing to meet the deadline could result in loss of input tax credit (ITC) for buyers and potential financial penalties for businesses. He also hinted that the three-year window might be shortened further in the future, increasing the urgency for timely compliance.
GST Return Filing Deadline Brings Certainty, But Raises Concerns Over Genuine Delays
Rajat Mohan, Senior Partner at AMRG & Associates, noted that the move will curb retrospective amendments and bring certainty to the tax regime. However, he cautioned that the lack of an exception mechanism could harm businesses that fail to file due to genuine reasons such as litigation, technical glitches, or oversight. In such cases, the denial of ITC could cause lasting financial setbacks.
Overall, this policy marks a significant shift in India’s GST framework, pushing for stricter compliance and closing the door on indefinite return filing delays.
Summary:
From July 2025, GST returns filed over three years late will be disallowed, following a Finance Act 2023 amendment. The move enforces stricter compliance, impacting returns like GSTR-1 and GSTR-3B. Experts warn of potential financial setbacks for delayed filings due to genuine issues, with no redressal mechanism currently in place.
