MM TAX CLUB

GSTN issued advisory dated January 27, 2025 with respect to extention of provision for restriction on editing auto-populated liability in GSTR-3B from the January 2025. current and previous advisory are as under;

In reference to the advisory dated October 17, 2024, regarding the restriction on editing auto-populated liability in GSTR-3B from the January 2025 tax period, the GSTN has received numerous requests from the trade community seeking additional time for this implementation.

As a result, the decision to make the auto-populated liability in GSTR-3B non-editable is currently deferred and will not be implemented from the January 2025 tax period on the GST Portal. Taxpayers are advised to stay updated for further notifications regarding this change.

October 17, 2024 – Initial Advisory on Hard Locking of Auto-Populated Liability in GSTR-3B

To enhance the accuracy of GST return filing and minimize human errors, GSTN has continuously improved the GST filing process. As part of this initiative, the GST Portal now provides a pre-filled GSTR-3B form, where:

• The tax liability is auto-populated from the declared supplies in GSTR-1/GSTR-1A/IFF by the supplier.

• The Input Tax Credit (ITC) is auto-populated from GSTR-2B.

• A detailed system-generated PDF of the auto-populated GSTR-3B is available to all taxpayers.

Key Features and Upcoming Changes

1. Correction Facility via GSTR-1A:

   • Taxpayers can amend incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A before filing their GSTR-3B.

2. Invoice Management System (IMS) for ITC Accuracy:

   • Taxpayers can manage inward supplies by taking informed actions (accept/reject/pending) on invoices via the newly introduced Invoice Management System (IMS).

3. Planned Hard Locking of Auto-Populated Liability:

   • Tentatively, from January 2025, the GST Portal aims to restrict changes in auto-populated liability in GSTR-3B sourced from GSTR-1/GSTR-1A/IFF.

   • Taxpayers must use GSTR-1A for any required modifications before filing GSTR-3B.

4. Locking of Auto-Populated ITC in GSTR-3B:

   • The restriction on modifying auto-populated ITC in GSTR-3B will be implemented at a later date after resolving concerns related to IMS.

   • A separate advisory will be issued regarding this change.

Preparation for the Upcoming Change

Taxpayers are encouraged to adapt to the upcoming changes by ensuring that their outward and inward supplies are accurately reported in GSTR-1/IFF and IMS, respectively. While the implementation has been deferred for now, it will be introduced soon, and adequate notice will be provided.

For further updates, stay tuned to official GST notifications and advisories.