📰 GSTN Advisory: File GST Returns Within 3 Years or Lose the Right – Advisory Issued by GSTN | Aaerm Law Associates | June 7, 2025
The Goods and Services Tax Network (GSTN) has released a crucial advisory for all registered taxpayers, warning that GST return filings beyond three years from their due dates will be permanently barred. This directive follows amendments under the Finance Act, 2023, and aims to strengthen tax compliance and promote data integrity within the GST framework.
The change will take effect from the July 2025 tax period, as confirmed by GSTN Advisory No. 607, dated June 7, 2025.
📌 Key Highlights of the Advisory
- Effective Date: Starting July 2025, GST returns older than three years from their original due dates cannot be filed.
- Legal Basis: This update stems from the Finance Act, 2023 (8 of 2023) and Notification No. 28/2023 – Central Tax, dated July 31, 2023.
- Returns Impacted: The restriction applies to returns under:
- Section 37 (Outward Supplies – GSTR-1)
- Section 39 (Monthly Return – GSTR-3B, GSTR-4, GSTR-5, GSTR-5A)
- Section 44 (Annual Return – GSTR-9)
- Section 52 (TCS – GSTR-8)
🔍 Why This Advisory Matters
Previously, taxpayers could file pending returns for older tax periods with penalties. Now, however, once three years pass, the GST portal will automatically restrict access to those returns. This will permanently block taxpayers from filing any return falling outside this window.
Therefore, this advisory represents a strict compliance shift, emphasizing both timeliness and responsibility in GST practices.
📊 Implications for Taxpayers
To comply with this update, taxpayers must act promptly. Here’s what they need to understand:
- Time-Sensitive Compliance: After three years, the GST portal will not allow filing of any pending return. Hence, businesses cannot rely on extensions or retrospective corrections.
- Record Accuracy: Since the system will reject late filings, businesses must maintain accurate and real-time financial records.
- Reduced Flexibility: Unlike earlier practices, there will be no room for filing even with penalties or interest after the deadline expires.
- Legal Exposure: Ignoring this advisory could result in non-compliance notices, increased scrutiny, and potentially legal consequences.
🧾 Action Plan for Businesses
To avoid these restrictions, taxpayers should:
- Step 1: Review Past Filings
Identify any unfiled GST returns for previous tax periods—especially those nearing the three-year limit. - Step 2: Reconcile Records
Cross-check accounting data with previous GST filings. Discrepancies can lead to rejections or audits. - Step 3: File Immediately
Don’t delay. File any backdated returns immediately, even if penalties apply. - Step 4: Seek Professional Guidance
If you’re unsure about eligibility or compliance risks, consult a GST expert or legal advisor.
⚖️ Legal and Operational Considerations
🔸 Archival Policy of GSTN
GSTN archives older data after seven years. This means, even if you want to refer to records later, that data may no longer be accessible. Filing and storing your records now ensures data availability.
🔸 Penalties and Notices
Under CGST Rules, unfiled returns can invite penalties up to ₹10,000 per return and may trigger departmental audits or legal proceedings.
🔸 Vendor and Input Credit Impact
Vendors rely on your filings to claim Input Tax Credit (ITC). Failure to file may impact your vendor relationships and financial reputation.
📝 Comparison to Previous Advisory
Interestingly, this is not GSTN’s first warning. On October 29, 2024, GSTN issued a similar advisory, but the new one formalizes the restriction by giving an implementation date and enforcing system-level restrictions.
Thus, this is no longer a suggestion—it’s a rule.
📌 Conclusion: Act Fast to Stay Compliant
The latest GSTN advisory is a wake-up call for all registered taxpayers. Ignoring these changes can result in permanent filing restrictions, compliance failures, and financial penalties. To safeguard your business, reconcile your records and file all pending returns immediately—before it’s too late.
Aaerm Law Associates strongly recommends taking proactive legal and accounting measures to avoid being locked out of the GST system.
