GST Return Filing Rule Changes from July 2025

GST return filing has become an integral compliance for any finance team or professional. Some significant GST return filing rule changes from July 2025 are underway on your official GST portal, and one of the updates involves bringing transformative changes to your compliance solution. Let’s dive deep into the two updates below, effective July 2025.

• Hard-locking of auto-populated values in GSTR-3B
• Implementation of time-barring of GST return filing

Key GST Return Filing Rule Changes (Effective July 2025)

GST return filing rules from July 2025 are changing, impacting all sections of the taxpayers. The changes demand precision and timeliness in GST return filing, failing which taxpayers will face GST notices and penalties.

The GST authorities have already notified the new rules for GST return, but the GST Network (GSTN) has only recently updated the GST portal. The GSTN issued two new advisories on 7th June 2025 as given below-

• Advisory regarding non-editable of auto-populated liability in GSTR-3B
• Barring of GST Return on expiry of three years

Advisory regarding non-editable of auto-populated liability in GSTR-3B

From the July 2025 tax period onwards, GSTR-3B will become non-editable for Table-3 values auto-filled from GSTR-1, GSTR-1A, or the Invoice Furnishing Facility (IFF). This means you will not be allowed to edit the GSTR-3B you file for July 2025, which is due in August 2025. The update was initially announced in January 2025, but was pushed to a later date. 

Until June 2025 returns (either monthly/quarterly), GSTR-3B can be edited for whatever pre-filled values. However, from the July 2025 period onwards, one cannot manually edit the outward supplies and taxes reported in Table 3 of GSTR-3B (summary return). These details are mostly automatically populated from GST returns such as GSTR-1 (returns for details of outward supplies), GSTR-1A (returns for amendment of GSTR-1 details), or IFF (month 1 and 2 sales reporting facility for quarterly filers). 

GSTR-1A is set to gain more importance with this new rule for GST return filing. Use GSTR-1A for any corrections in the outward supplies and taxes on it, earlier reported in GSTR-1 or IFF, except for the recipient’s GSTIN. It allows the taxpayer to amend or add tax liability details before filing GSTR-3B for the same tax period.

Barring of GST Return on expiry of three years

The GST network issued another advisory on 7th June 2025, implementing the rule of time-barring of GST return filing beyond three years from the due date. By this update, taxpayers will not be able to file GST returns after three years from the due date of such return. The CBIC notified us of this change effective 1st October 2023, and the GSTN has now brought this validation live on the official GST portal starting from July 2025. 

Scope of the 3-year filing restriction

Relevant CGST notification no. 28/2023 – Central Tax issued on 31st July 2023 entails the list of GST returns one needs to file before the expiry of three years from the due date. Returns under the CGST Sections 37 (Outward supplies), 39 (Summary return), 44 (Annual return) and 52 (Tax collection at source) are covered by this new GST rule. These provisions cover GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8 and GSTR-9.

Impact on Different Categories of Taxpayers

The advisory on time-barring of GST returns filing impacts all sections of taxpayers. Those who have to file nil returns but haven’t so far must ensure they file before the time limitation expires. The tax teams must be wary of the due dates for various returns and ensure timely filing to avoid such restrictions.

On the other hand, the advisory on hard-locking of auto-filled GSTR-3B was seen getting implemented in due course. Currently, the sales details will be hard-locked in GSTR-3B from edits. In the near future, we can expect the ITC details auto-filled from GSTR-2B to be hard-locked from edits in GSTR-3B. Let’s deep-dive into the repercussions of the GSTR-3B hard-locking update on different types of taxpayers-

For monthly filers of GSTR-1 and GSTR-3B

Large taxpayers and monthly filers of GST returns will no longer be able to edit the auto-filled GSTR-3B in the near future. The move ensures data would be consistent between GSTR-1 and GSTR-3B, reducing the need for any last-minute adjustments and potential revenue leakage. 

However, it also necessitates the finance team to actively adopt the invoice management system (IMS) to monitor the rejections of any sales/credit notes/debit notes documents by their buyers in real time. Whenever the supplier gets notified of a rejection, their team should verify the record and take appropriate action in GSTR-1A to negate its effect in GSTR-3B. There is no room for errors, as it makes the additional process of carrying out amendments in GSTR-1A cumbersome. 

Hence, having the necessary data import validations for your GST solution is now even more essential. What’s better is to directly stream your General ledger data - sales and tax ledgers into our compliance platform, enabled by  Clear’s new GL-Stream technology and stay notice-free.

For quarterly filers of GSTR-1 and GSTR-3B (QRMP)

At first glance, the quarterly filers (QRMP) of GSTR-1 and GSTR-3B might find this move complicated. However, the update will ensure data accuracy in GSTR-3B, thus reducing the chances of GST notices for discrepancies with GSTR-1. During the first and second months of the quarter, small taxpayers usually report their sales and tax liability in IFF. 

In the last month of the quarter, they must report third-month sales, while the rest of the IFF details will be pre-filled. They can continue doing the same and make any changes in GSTR-1A after the last month of the quarter, covering corrections for the said quarter. Such sales details, along with the corrections, will be auto-filled in the quarterly GSTR-3B. 

Regularly monitoring any rejections on the IMS will help taxpayers take action in GSTR-1A and reduce data inconsistencies in GSTR-3B. It demands enhanced coordination and early error correction within the quarter to ensure accurate tax liability reporting.

This update does not impact composition taxable persons. 

Immediate Action Plan for Taxpayers

Here is an immediate action plan for taxpayers in light of the GSTN advisory effective from July 2025:

1. Reconcile sales and tax liability early: Thoroughly review and reconcile all outward supply details in GSTR-1 and IFF for the relevant tax period with your sales register and e-invoicing data, well before filing GSTR-3B to ensure accuracy.
2. Utilise GSTR-1A for corrections: Make any necessary amendments or corrections to outward supplies and tax liabilities exclusively through GSTR-1A before filing GSTR-3B, as manual edits in GSTR-3B will no longer be allowed.
3. Enhance internal controls: Strengthen internal invoice management and reconciliation processes to avoid last-minute discrepancies, given the locking of auto-populated liabilities in GSTR-3B.
4. File pending returns promptly: Address and file any outstanding or pending GST returns immediately, since returns cannot be filed after three years from their due date starting July 2025.
5. Train and inform relevant staff: Educate tax teams and professionals about the new non-editable GSTR-3B rule and the importance of timely and accurate GSTR-1 and GSTR-1A filings to ensure smooth compliance.