From January 2025, GST returns after the expiry of 3 years can not filed!

Starting from January 2025, a significant change is set to impact how businesses file their Goods and Services Tax (GST) returns in India. GSTN issued an advisory on 29^th October 2024 about barring GST Return on expiry of three years.

The government has introduced a new rule that mandates businesses to file their GST returns within three years from the due date of the respective period. After this three-year window, no returns will be allowed to be filed, effectively closing the door on late filings for previous periods. 

Let’s understand the changes!

GSTN Advisory dated 29th October 2024

Barring GST Return on expiry of three years

Oct 29th, 2024

As per the Finance Act,2023 (8 of 2023), dt. 31-03-2023, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31st July 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return under Section 37 ( Outward Supply), Section 39 (payment of liability), Section 44 ( Annual Return) and Section 52 (Tax Collected at Source). These Sections cover GSTR-1, GSTR 3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR 7, GSTR 8 and GSTR 9.

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 now.

Thanking  You,
Team GSTN

Key Highlight of the Advisory

Starting January 2025, businesses will no longer be able to file GST returns for periods older than three years. This change, effective from the Finance Act 2023, limits the filing window for returns under Sections 37, 39, 44, and 52, including forms like GSTR-1, GSTR 3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR 7, GSTR 8 and GSTR 9. 

Businesses are urged to reconcile and file any pending returns before the deadline to avoid losing the opportunity for late filing. This change emphasizes the importance of timely filing and maintaining accurate records to avoid penalties and compliance issues. the taxpayers are urged to review their records and submit any outstanding GST returns promptly to avoid any issues, an advisory by GSTN stated.

Conclusion

The introduction of the three-year filing limit for GST returns is a crucial step in simplifying compliance and reducing administrative delays. As businesses will no longer be able to file returns after the expiration of this period, it becomes imperative for taxpayers to ensure that all pending GST returns are filed well before the January 2025 deadline. Timely reconciliation of records and prompt filing will help avoid penalties, interest, and potential legal complications.

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