From July 1, GST returns pending three years can't be filed

The
Goods and Services Tax Network
on Saturday cautioned taxpayers that they will not be allowed to file their returns after three years from the due date from next month. In an advisory, it asked taxpayers to reconcile their records and file pending returns before the deadline.
The restriction—set to be implemented on the GST portal from July—follows an amendment in the Finance Act, 2023. This will be applicable for various returns including GSTR-1, GSTR-3B and GSTR-9.
"The said restriction will be implemented on the GST portal from July 2025 tax period. Hence, the taxpayers are once again advised to reconcile their records and file their GST returns as soon as possible, if not filed till now," the Goods and Services Tax Network (GSTN) said in its advisory.
The Central Board of Indirect Taxes and Customs (CBIC) has already communicated to field formations to sensitise taxpayers about the deadline, so that they reconcile their records and file pending returns soon.
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Experts said the move is aimed at fostering greater discipline in the tax ecosystem and ensuring time-bound compliances.
'For businesses, this advisory carries significant implications. It is absolutely imperative to ensure all returns are filed promptly to avoid loss of
input tax credit
to their buyers and significant penalties,' said Saurabh Agarwal, tax partner, EY.
'Looking ahead, it's highly probable that this three-year window will be further reduced,' Agarwal added.
Rajat Mohan, senior partner, AMRG and Associates, said this will also help in restraining retrospective amendments. 'This move marks a definitive closure of the return filing window, aimed at bringing certainty to the tax system and limiting retrospective compliances,' said Mohan. He, however, added that it may severely impact taxpayers who- —due to litigation, system issues or genuine oversight—have pending filings. 'The absence of a redressal mechanism for exceptional cases could lead to permanent denial of input tax credit and financial setbacks,' Mohan said.

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