Relevant Provisions
- Section 37, 39, 44 and 52 – CGST Act, 2017
- Notification No. 28/2023 – Central Tax dated 31st July 2023
- Section 142 to 145 – Finance Act, 2023 (8 of 2023)
Goods and Services Tax Network (GSTN) is going to implement a provision introduced via the Finance Act, 2023, restricting the filing of certain GST returns beyond three years from their respective due dates. This functionality is going to operational from July 2025 tax period.
Key Highlights of the New Rule:
➢ Three-Year Limitation: Taxpayers will no longer be allowed to file returns after the expiry of three years from their original due date. This applies to returns under:
- Section 37 (GSTR-1 – Outward Supplies),
- Section 39 (GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6 and GSTR-7),
- Section 44 (GSTR-9 – Annual Return), and
- Section 52 (GSTR-8 – Tax Collected at Source).
➢ Implementation Timeline: Though the enabling provisions came into force on 1st October 2023, via Notification No. 28/2023, the actual enforcement on the GST Portal begins from July 2025 tax period.
Advisories Issued:
- The GSTN first cautioned taxpayers through an advisory dated 29th October, 2024, alerting them about the upcoming restriction and encouraging them to clear any backlogs.
- A follow-up reminder was issued again on 7th June, 2025, emphasizing that the change will be activated from the July, 2025 tax period.
Impact and Action Required:
Failure to file returns within the stipulated three-year window will result in a permanent loss of filing opportunity for that period. This could jeopardize refund claims, input tax credit reconciliation and financial disclosures. Therefore, all registered persons having returns pending for filing on GSTN Portal, may plan to file the same at the earliest.
Conclusion:
The amendments introduced through Sections 142 to 145 of the Finance Act, 2023, bring a uniform limitation period of three years for furnishing various returns viz. outward supply details (Section 37), monthly/quarterly returns (Section 39), annual returns (Section 44) and TCS statements by e-commerce operators (Section 52). This change aims to instill finality and certainty in GST compliance framework by disallowing indefinite delays in furnishing returns or statements.
However, liberty is also granted to the Government to notify that returns beyond three years can be filed. The proviso appended to relevant provisions reads as under:
“Provided that the Government may, on the recommendations of GST Council, by notification and subject to such conditions and restrictions as may be specified therein, allow a registered person, class of registered persons or operators, as the case may be, to furnish such return, statement or details even after the expiry of the said period of three years from the due date of furnishing the same.”
It would be interesting to see how GSTN portal aligns the filing restrictions in accordance with the Notification, if any, issued by Government permitting filing of returns beyond three years.