This communication serves to provide clarity on the recent development regarding the editing of auto-populated liability in GSTR-3B, as well as the delay in the implementation of the restriction.
1. Previous Advisory - October 17, 2024:
On October 17, 2024, an advisory was issued informing taxpayers of the upcoming restriction on editing the auto-populated liability in GSTR-3B. This change was set to be implemented from the January 2025 tax period. The intention behind this change was to streamline the process, ensure greater accuracy, and reduce manual errors, thus simplifying the filing process for taxpayers.
Previous advisory outlines “To help taxpayers file their returns and reduce mistakes, GSTN has been improving the return filing process. The GST Portal now provides a pre-filled GSTR-3B form, where the tax amount is automatically filled in from the declared supplies in GSTR-1, GSTR-1A, or IFF. The Input Tax Credit (ITC) is also automatically filled in from GSTR-2B. Taxpayers can also download a PDF showing the auto-filled GSTR-3B.
Taxpayers can now fix any mistakes in the outward supplies declared in GSTR-1 or IFF using GSTR-1A before filing their GSTR-3B. They can also manage inward supplies and ensure correct ITC claims in GSTR-3B by accepting, rejecting, or marking them as pending through the Invoice Management System (IMS), which is now available.
From January 2025, the GST Portal will stop taxpayers from making changes to the auto-populated tax liability in GSTR-3B that comes from GSTR-1, GSTR-1A, or IFF. This is to improve the accuracy of return filing. If any changes are needed in the auto-populated tax liability, they should be made through GSTR-1A.
The locking of auto-populated ITC in GSTR-3B will happen at a later date, after IMS is fully rolled out. A separate advisory will be issued once all issues related to IMS are resolved.”
2. Trade Concerns and Request for Extension:
Following the advisory, several requests have been received from trade associations and taxpayers seeking additional time to adapt to the new system. These concerns stem from the potential impact on businesses and their existing systems, with some taxpayers requesting more time to prepare for the changes.
3. Delay in Implementation:
In light of the feedback and requests for more time, it has been decided that the restriction on editing the auto-populated liability in GSTR-3B will not be enforced for the January 2025 tax period on the GST portal. The decision to lock the liability figures will not be implemented at this time, allowing taxpayers to continue editing the figures as they have done previously.
4. Future Implementation:
It is important to note that this change, although delayed, will still be introduced in the near future. Taxpayers are encouraged to begin preparing for the upcoming implementation of the non-editable auto-populated liability in GSTR-3B, which will likely be communicated through further notifications and advisories. It is expected that once
