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Indirect Taxation

July 2025

GST Update: Major Changes in GST Portal

GST Update: Major Changes in GST Portal

In line with the Finance Act, 2023 and recent advisories issued by GSTN/CBIC, the following major changes will come into force from the July 2025 tax period (i.e., returns due in August 2025):

GSTR-3B to Become Non-Editable

  • Starting July 2025, GSTR-3B will be fully auto-populated and non-editable. Taxpayers will no longer be permitted to manually alter tax liabilities or input figures.
  • Any corrections to outward supplies must be made through GSTR-1A, prior to filing GSTR-3B.
  • Once GSTR-3B is submitted, no further changes will be allowed under any circumstances.
  • This move is aimed at ensuring strict reconciliation between GSTR-1 and GSTR-3B data, thereby enhancing transparency and reducing discrepancies.

3-Year Time Limit for Filing Returns

  • Effective July 1, 2025, the GST portal will restrict the filing of returns that are more than 3 years past their original due date.
  • For example, GSTR-3B for July 2022 (originally due on August 20, 2022) must be filed no later than August 20, 2025.
  • This limitation will apply to all major returns including GSTR-1, GSTR-3B, GSTR-4, GSTR-9

Immediate Actions Recommended

To ensure smooth compliance under the revised framework, taxpayers are advised to:

  • Review and reconcile GSTR-1 data to prevent downstream mismatches in GSTR-3B.
  • Clear all pending or overdue returns, especially those for tax periods prior to July 2022.
  • Update internal SOPs and coordinate with your GST consultant or advisor to align with the upcoming system changes.

 

Updates in Refund Filing Process for Recipients of Deemed Export

GSTN has made the following changes in the refund filing process under the category “On account of Refund by Recipient of deemed export”:

  • Refund applications under this category no longer need to be filed in chronological orderof Tax Period, which means Taxpayers are not required to select “From Period” and “To Period” while filing a refund application.
  • Taxpayers must ensure that all the returns (GSTR-1, GSTR-3B etc.) due till the date of the refund application are filed.
  • Under the aforementioned category, the table “Amount Eligible for Refund”has been modified. The columns of the revised table are explained hereunder:
  • 1 ‘Balance in ECL at the time of filing of refund application’. This column will reflect the balance available under various Head in Electronic Credit Ledger at the time of filing of application. It will be auto-populated.
  • 2 ‘Net Input Tax Credit (ITC) of Deemed Exports (as per uploaded invoices)’,in this column, the amount of claimed ITC, under respective major Heads will be auto populated based on invoices furnished in Statement 5B.
  • 3 ‘Refund amount as per the uploaded invoices’reflects the sum of the amount of ITC claimed under all major Heads (IGST/CGST/SGST/UT) as per the invoices uploaded by the taxpayer in Statement 5B and shall be downward editable.
  • 4 ‘Eligible Refund Amount’. In this column, the maximum amount of ITC that is available for a refund claim will be auto-populated. It will be auto-calculated based on the order of debit specified in Circular No. 125/44/2019-GST dated 18.11.2019.
  • 5 “Refund amount not eligible as insufficient balance in the ECL (5)”. This column reflects the difference between the total amount of claimed ITC and the total amount of ITC available in the electronic credit Ledger under various major Heads.
  • Functionality has been improved to maximize the amount of refund a taxpayer can claim in terms of uploaded invoices, irrespective of the fact that sufficient balance is available in the respective Head of electronic credit ledger or not. Here, the total amount of claim under various Heads (IGST, CGST, SGST) will be compared with the total amount of ITC available under various Heads in the electronic credit ledger.

Updates in Refund Filing Process for Various Refund Categories-Reg

  • GSTN has made important changes in the refund filing process under the following categories:

(a) Export of Services with payment of tax

(b) Supplies made to SEZ Unit / SEZ Developer with payment of tax

(c) On account of the Refund by the Supplier of the Deemed export

  • For the above refund categories, the requirement to select a specific tax period (‘From’ and ‘To’) while filing refund applications has been removed. The taxpayers can now directly proceed with selecting the refund category as above and clicking on “Create Refund Application.”
  • Taxpayers must ensure that all the returns (GSTR-1, GSTR-3B etc.) due till the date of refund application are filed.
  • The said refund categories are changed from ‘Tax Period based filing’ to ‘Invoice based filing’. The taxpayers can upload eligible invoices and claim a refund in the following statements:

(a) Export of Services with payment of Tax (Statement 2)

(b) SEZ Supplies with payment of Tax (Statement 4)

(c) In case of Deemed Exports, the application by the Supplier (Statement 5B)

The invoices, once uploaded with a refund application, will be locked for any further amendments and will not be available for any subsequent refund claims. The said invoices will be unlocked only if the refund application is withdrawn or a deficiency memo is issued.

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