The Goods and Services Tax Network (GSTN) has issued a fresh advisory confirming that filing of GST returns will be barred after three years from the due date, starting with the July 2025 tax period.
As per the advisory, this includes outward supply returns, annual returns, tax collected at source (TCS) filings, and returns related to payment of liabilities. This move comes as part of a broader push towards improving compliance discipline within the GST regime.
“The returns will be barred for filing after expiry of three years. The said restriction will be implemented on the GST portal from the July 2025 Tax period,” the GSTN advisory stated.
GSTN Urges Taxpayers to File Pending Returns Immediately
The GSTN has urged all registered taxpayers to reconcile records and file any pending returns at the earliest, especially those that are approaching the three-year cutoff window.
The warning comes after an earlier notice in October 2024, where GSTN had flagged that the time-barred provision would be operationalized in early 2025.
Expert Opinion: No Redressal Mechanism May Hurt Genuine Cases
Rajat Mohan, Senior Partner at AMRG & Associates, welcomed the move for tightening compliance but also warned of unintended consequences.
“While this step enhances system discipline and curtails prolonged non-compliance, it may severely impact taxpayers who, due to litigation, system issues, or genuine oversight, have pending filings,” he said.
He further stressed the absence of a redressal mechanism, which could lead to permanent denial of Input Tax Credit (ITC) and cause significant financial setbacks for affected businesses.
Impact on Businesses
- Permanent loss of ITC for unfiled returns older than 3 years.
- No ability to amend or rectify returns post cut-off.
- Compliance pressure on MSMEs and firms dealing with legacy issues or disputes.
Conclusion
With the July 2025 tax period acting as the starting point for time-barring of GST returns, taxpayers must ensure their filings — even for earlier periods — are up to date. Failure to comply could result in loss of credits, penalties, and prolonged disputes.