Hard-Locking of auto-populated values in GSTR-3B-GST Advisory dated 17-10-2024!

In a significant update for GST compliance, the GST Advisory dated 17th October 2024 introduces a crucial change to the auto-population feature in GSTR-3B filings. This new advisory focuses on the hard-locking of auto-populated values, ensuring greater accuracy and preventing manual alterations of figures that have already been pre-filled by the system. The move aims to streamline the filing process and minimize errors, enhancing overall tax reporting and reconciliation for businesses. 

Let’s understand the changes.

Advisory dated 17^th October 2024

Attention – Hard - Locking of auto-populated liability in GSTR-3B

1. To assist taxpayers in filing their returns and minimizing human errors, GSTN has continuously improved the GST return filing process and in this endeavor, the GST Portal now provides a pre-filled GSTR-3B form, where the tax liability is auto-populated from the declared supplies in GSTR-1/ GSTR-1A/ IFF by the supplier, while the Input Tax Credit (ITC) is auto-populated from GSTR-2B. A detailed system-generated pdf of the auto-populated GSTR-3B is also provided to all the taxpayers.

2. Now, taxpayers also have a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing them an opportunity to correct their liabilities before filing their GSTR-3B. Additionally, to manage inward supplies and ensure accurate ITC claims in GSTR-3B, taxpayers have the option to take informed actions of accept/reject/pending inward supplies via the Invoice Management System (IMS) which is now available to the taxpayers.

3. It may be noted that tentatively from the January 2025 tax period, the GST Portal is going to restrict making changes in auto-populated liability in pre-filled GSTR-3B from GSTR-1/1A/IFF to further enhance accuracy in return filing. It is once again suggested hereby that in case any change is required in auto-populated liability, the same may please be handled through GSTR-1A.

4. However, locking of auto-populated ITC in GSTR-3B, after the rollout of IMS, will be implemented at a later date. For the same, a separate advisory would be issued after addressing all the issues related to IMS, raised by the trade.

Thanking You,
Team GSTN

Key Highlights

• From January 2025, the GST Portal is going to restrict making changes in auto-populated liability in pre-filled GSTR-3B from GSTR-1/1A/IFF. The amounts in Table 3.1 will be disabled for editing. Any changes are to be routed through GSTR 1A.
• Similarly, locking of auto-populated ITC in GSTR-3B from IMS and GSTR 2B, will be implemented from a later date.

Conclusion

The introduction of the hard-locking mechanism for auto-populated values in GSTR-3B, as outlined in the GST Advisory dated 17-10-2024, marks a crucial step towards enhancing the accuracy and integrity of GST filings. By restricting manual changes to auto-populated data, the government aims to reduce errors and ensure that businesses comply with the prescribed tax rules more effectively. As this new feature is implemented, businesses must stay informed and adapt their processes to ensure smooth and error-free filing of GSTR-3B. This move is a clear indication of the government's commitment to improving the GST system and promoting greater transparency in tax reporting.

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