- Goods and Services Tax Network (GSTN) has issued a crucial advisory aimed at streamlining the reporting of inter-State supplies made to Unregistered Persons, Composition Taxable Persons and UIN Holders in Table 3.2 of GSTR-3B from July 2025 tax period and onwards.
Key Advisory Highlights
- Non-Editable Auto-Populated Values
- Starting from tax period July 2025, values of inter-State supplies made to unregistered persons, composition taxpayers and UIN holders which one to be reported in Table 3.2 of GSTR-3B, being auto-populated by the GST system, has been made non-editable. Taxpayers will be required to file GSTR-3B with these system-generated values only.
- Rectification Process
- If any incorrect values appear in Table 3.2 of Form GSTR-3B due to errors in reporting through GSTR-1 or Invoice Furnishing Facility (IFF), taxpayers must amend the data by filing Form GSTR-1A prior to filing of return in Form GSTR-3B.
- Use of GSTR-1A for Amendments
- Amendments to auto-populated values in Form GSTR-3B can be made through Form GSTR-1A any time before filing GSTR-3B. Since there is no cut-off date for filing of GSTR-1A, it provides flexibility for making necessary corrections.
- Importance of Accurate Upstream Reporting
- Accurate reporting in GSTR-1, GSTR-1A and IFF is essential to ensure that auto-populated values in Table 3.2 are correct. This minimizes discrepancies and ensures compliance with GST regulations.
Effect
- In case where GSTR-1A for a tax period is already filed and incorrect values auto-populate in Form GSTR-3B, then taxpayer has been left with no option but to file amendments in Form GSTR-1A or IFA of subsequent tax period.
- This functionality aims to improve the accuracy of inter-State supply reporting and enhance compliance. Taxpayers must adapt to the change by ensuring that their reporting in GSTR-1 and related forms is precise and accurate, as any errors will flow into GSTR-3B automatically.
Our Remarks
- This development underscores the importance of meticulous data entry in GSTR-1, GSTR-1A and IFF. Businesses should review their reporting processes to ensure accuracy and avoid last-minute corrections in GSTR-3B. Proactive measures now will prevent errors and reduce compliance risks under the GST framework.
- Though the advisory provides to make corrections in GSTR-1A or IFF of subsequent tax period (obviously where GSTR-1A) for current tax period is already filed without reporting correction in values of inter-state supplies made to Unregistered Persons, Composition Taxable Persons and UIN Holders), in our view, in such cases amendment can be made through GSTR-1 of subsequent tax period.
- Further, if the circumstance explained in para 9 above leads to additional payment of GST (with adjustment in subsequent tax period when corrections are made), the assessee can approach jurisdiction High Court under Article 226 of Constitution of India praying for correction in current tax period itself to avoid financial hardship.
Relevant Provisions
- Advisory issued by GSTN dated July 19, 2025
- Circular: Advisory on reporting values in Table 3.2 of GSTR-3B issued on April 11, 2025