GST filing gets tougher: No room for error in GSTR-3B from July
Ahmedabad: From July onwards, taxpayers will no longer be able to edit auto-populated tax liability in their GSTR-3B returns — a major change in the Goods and Services Tax (
GST
) framework.
The GST Network (GSTN) has rolled out this update, aiming to curb misuse and plug revenue leakages. However, tax experts warn that this will warrant higher accuracy from suppliers and could trigger cash flow challenges for buyers.
Taxation experts say that to address discrepancies in GSTR-1 filings, a new form—GSTR-1A—has been introduced but it isn't real-time. This means any corrections made through GSTR-1A could delay Input Tax Credit (ITC) for buyers, potentially leading to working capital issues.
"This is a major structural shift," said Deep Thakkar, chartered accountant and co-chairman of the Indirect Tax Committee at the Gujarat Chamber of Commerce and Industry (GCCI).
"Currently, suppliers file GSTR-1, which auto-populates their GSTR-3B and also feeds into the buyers' GSTR-2B. If suppliers make an error or want to adjust their tax liability, they currently edit GSTR-3B directly. That option will no longer be available,," says Deep Thakkar, chartered accountant and co-chairman of the Indirect Tax Committee at the Gujarat Chamber of Commerce and Industry (GCCI).
From July, if a supplier makes a mistake in GSTR-1, the only way to correct it is by filing GSTR-1A—before the GSTR-3B deadline, which is the 20th of every month. However, since GSTR-2B (used by buyers to file GSTR-3B) is generated on the 14th, late corrections may only reflect in the next month's ITC cycle, delaying credit and tying up funds.
Explaining the rationale behind the decision being taken, a senior GST official said on condition of anonymity, "The decision to restrict editing in GSTR-3B has been in the pipeline for nearly 18 months.
When a supplier files GSTR-1, the output tax liability gets auto-populated into the system and becomes part of the buyer's Input Tax Credit (ITC). This happens by the 10th of every month, with GSTR-3B due by the 20th.
If a supplier defaults on tax payment, the entire recovery chain is impacted. Allowing edits in GSTR-3B was leading to misuse—essentially allowing ITC to be passed on without corresponding tax being paid.
At some point, the system needs to be secured to protect government revenue."
Chartered accountants claim that the decision while making way to curb fraudulent claims will certainly increase the compliance burden of taxpayers.
"This change will certainly reduce fraudulent ITC claims and plug revenue loss. But it also increases the compliance burden. Even genuine mistakes in GSTR-1 can be rectified only through GSTR-1A which needs to be streamlined as it is essential to avoiding penalising honest taxpayers," said Thakkar.
Another Chartered accountant Karim Lakhani echoed the concerns, stating, "The margin for error has shrunk dramatically. Every supplier will now need to file GSTR-1 with utmost accuracy. Any lapse can impact their clients' ability to claim timely ITC. This is one of the most significant changes to the GST regime since its inception."
Ahmedabad: From July onwards, taxpayers will no longer be able to edit auto-populated tax liability in their GSTR-3B returns — a major change in the Goods and Services Tax (GST) framework.
The GST Network (GSTN) has rolled out this update, aiming to curb misuse and plug revenue leakages. However, tax experts warn that this will warrant higher accuracy from suppliers and could trigger cash flow challenges for buyers.
Taxation experts say that to address discrepancies in GSTR-1 filings, a new form—GSTR-1A—has been introduced but it isn't real-time. This means any corrections made through GSTR-1A could delay Input Tax Credit (ITC) for buyers, potentially leading to working capital issues.
"This is a major structural shift," said Deep Thakkar, chartered accountant and co-chairman of the Indirect Tax Committee at the Gujarat Chamber of Commerce and Industry (GCCI).
"Currently, suppliers file GSTR-1, which auto-populates their GSTR-3B and also feeds into the buyers' GSTR-2B. If suppliers make an error or want to adjust their tax liability, they currently edit GSTR-3B directly. That option will no longer be available,," says Deep Thakkar, chartered accountant and co-chairman of the Indirect Tax Committee at the Gujarat Chamber of Commerce and Industry (GCCI).
From July, if a supplier makes a mistake in GSTR-1, the only way to correct it is by filing GSTR-1A—before the GSTR-3B deadline, which is the 20th of every month. However, since GSTR-2B (used by buyers to file GSTR-3B) is generated on the 14th, late corrections may only reflect in the next month's ITC cycle, delaying credit and tying up funds.
Explaining the rationale behind the decision being taken, a senior GST official said on condition of anonymity, "The decision to restrict editing in GSTR-3B has been in the pipeline for nearly 18 months.
When a supplier files GSTR-1, the output tax liability gets auto-populated into the system and becomes part of the buyer's Input Tax Credit (ITC). This happens by the 10th of every month, with GSTR-3B due by the 20th.
If a supplier defaults on tax payment, the entire recovery chain is impacted. Allowing edits in GSTR-3B was leading to misuse—essentially allowing ITC to be passed on without corresponding tax being paid.
At some point, the system needs to be secured to protect government revenue."
Chartered accountants claim that the decision while making way to curb fraudulent claims will certainly increase the compliance burden of taxpayers.
"This change will certainly reduce fraudulent ITC claims and plug revenue loss. But it also increases the compliance burden. Even genuine mistakes in GSTR-1 can be rectified only through GSTR-1A which needs to be streamlined as it is essential to avoiding penalising honest taxpayers," said Thakkar.
Another Chartered accountant Karim Lakhani echoed the concerns, stating, "The margin for error has shrunk dramatically. Every supplier will now need to file GSTR-1 with utmost accuracy. Any lapse can impact their clients' ability to claim timely ITC. This is one of the most significant changes to the GST regime since its inception."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Standard
21 minutes ago
- Business Standard
Volumes jump at Dixon Technologies (India) Ltd counter
Dixon Technologies (India) Ltd saw volume of 17.08 lakh shares by 10:46 IST on BSE, a 113.11 fold spurt over two-week average daily volume of 15096 shares Ola Electric Mobility Ltd, Global Health Ltd, Alkyl Amines Chemicals Ltd, Cohance Lifesciences Ltd are among the other stocks to see a surge in volumes on BSE today, 23 June 2025. Dixon Technologies (India) Ltd saw volume of 17.08 lakh shares by 10:46 IST on BSE, a 113.11 fold spurt over two-week average daily volume of 15096 shares. The stock increased 2.56% to Rs.14,415.05. Volumes stood at 9944 shares in the last session. Ola Electric Mobility Ltd notched up volume of 171.43 lakh shares by 10:46 IST on BSE, a 9.38 fold spurt over two-week average daily volume of 18.28 lakh shares. The stock slipped 4.47% to Rs.43.99. Volumes stood at 15.71 lakh shares in the last session. Global Health Ltd registered volume of 45934 shares by 10:46 IST on BSE, a 5.46 fold spurt over two-week average daily volume of 8408 shares. The stock rose 0.50% to Rs.1,137.60. Volumes stood at 14427 shares in the last session. Alkyl Amines Chemicals Ltd recorded volume of 18703 shares by 10:46 IST on BSE, a 3.53 times surge over two-week average daily volume of 5297 shares. The stock gained 1.84% to Rs.2,106.60. Volumes stood at 23675 shares in the last session. Cohance Lifesciences Ltd clocked volume of 19947 shares by 10:46 IST on BSE, a 2.99 times surge over two-week average daily volume of 6672 shares. The stock gained 0.51% to Rs.991.05. Volumes stood at 4128 shares in the last session.
Time of India
an hour ago
- Time of India
Trump's visa policy threatens 16 US colleges dependent on international students
Live Events You Might Also Like: US resumes visas for foreign students but demands access to social media accounts You Might Also Like: US resumes student visa processing. But there is a big catch US institutions 1 California College of the Arts 2 Campbellsville University 3 Harrisburg University of Science and Technology 4 Hult International Business School 5 Illinois Institute of Technology 6 Lindsey Wilson College 7 Maharishi International University 8 Manhattan School of Music 9 Missouri Valley College 10 New England College 11 Saint Peter's University 12 St. Francis College 13 Stevens Institute of Technology 14 The New School 15 University of Bridgeport 16 University of New Haven A group of financially struggling private colleges in the United States are facing fresh uncertainty as the Trump administration's new restrictions on foreign student visas threaten their primary revenue stream. According to a report by Forbes, 16 nonprofit institutions- including St. Francis College in New York and Hult International Business School in Boston-rely heavily on international student enrolment and are now at institutions in question meet three specific criteria: at least one-third of their students are from outside the US, more than half of their annual revenue comes from tuition and fees, and each received a C+ or lower grade on Forbes' latest financial health Francis College, which had been operating in deficit since 2017, showed a temporary recovery in fiscal 2023, largely due to a $160 million property sale. The college also implemented major cost cuts, including shutting down its Division I athletics program and laying off staff. Despite this, auditors have expressed concern about its financial future. With a modest endowment of $46 million, the college has looked to international students to help fill the gap. Between 2022 and 2023, St. Francis nearly tripled its foreign student this model is now under pressure. In June 2024, the US State Department paused new appointments for F-1 and J-1 student visas. Then, earlier this month, President Trump signed an executive order halting visa issuance to applicants from 12 countries, including Iran, Somalia and Yemen. Though framed as national security measures, these steps have directly impacted colleges dependent on overseas enrolment.(Join our ETNRI WhatsApp channel for all the latest updates)At Harrisburg University and Hult International, more than 75% of students are international. Other institutions like Manhattan School of Music and California College of the Arts enroll 51% and 42% international students respectively. All 16 colleges identified by Forbes either declined or did not respond to interview per the Forbes report, experts say international students are key to the survival of these institutions. Unlike US students, they usually pay full tuition without financial aid. At Campbellsville University in Kentucky, nearly 50% of students are foreign, and 83% of its revenue is from tuition and fees. Similarly, the University of Bridgeport in Connecticut, where 36% of the student body is international, depends on tuition for 72% of its broader economic impact of international students is also significant. According to the National Foundation for American Policy, one in four billion-dollar US start-ups were founded by international students. A separate federal study shows that most international graduates remain in the US, contributing to its research and science sectors.
Time of India
2 hours ago
- Time of India
Granules India shares in focus after US FDA flags observation at Telangana API facility
Live Events Granules India share price target (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Granules India will be in focus on Monday after the company announced that its active pharmaceutical ingredient (API) facility in Telangana has received an observation from the US Food and Drug Administration (FDA) under Form a stock exchange filing, Granules India said the FDA completed an inspection at its API Unit-1 facility in Bonthapally, Sangareddy district, last to the FDA, Form 483 observations are issued when investigators observe practices or conditions that may potentially violate the Food, Drug and Cosmetic Act. However, a Form 483 does not constitute a final determination of non-compliance by the India said it will respond to the observation within the stipulated Bonthapally site is Granules India's largest API manufacturing facility for paracetamol. It also houses production units for Metformin and Guaifenesin APIs, the company to Trendlyne, the average analyst target price for Granules India is Rs 622, indicating an upside potential of about 28% from current levels. Of the 8 analysts tracking the stock, the consensus rating is 'Strong Buy'.On the technical front, the Relative Strength Index (RSI) stands at 40.4, suggesting neutral to slightly bearish momentum. The stock continues to trade below its 20-day, 50-day, 100-day, and 200-day simple moving averages (SMAs), indicating continued India shares have declined around 19% year-to-date, but the stock has delivered a 66% return over the past two years. The company's market capitalisation currently stands at approximately Rs 11,808 crore.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
