Hard-locking of auto-populated liabilities in GSTR-3B

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January 28, 2025

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Hard-locking of auto-populated liabilities in GSTR-3B

Hard-Locking of auto-populated liability in GSTR-3B

The implementation of hard-locking auto-populated liability in GSTR-3B, which was initially intended for the January 2025 tax period, has been postponed. This decision comes after numerous appeals from the trade for extra time to adjust to the shift. The GSTN has stated that the restriction on modifying auto-populated obligations will not be implemented immediately, but rather in the near future. Taxpayers should use this opportunity to prepare for the upcoming change.

GSTN announced in an advisory dated October 17, 2024 that editing of auto-populated liabilities in GSTR-3B would be restricted beginning from tax period January 2025 of FY 2024-25. This change was intended to improve compliance accuracy and decrease errors in tax reporting. However, after huge appeals from the traders for extra time to adjust, GSTIN has postponed the implementation to a later date.

To simplify GST return filing and reduce errors, the GST Network (GSTN) has improved the system by including pre-filled GSTR-3B forms. These forms automatically populate tax liabilities from GSTR-1/GSTR-1A/IFF and Input Tax Credit (ITC) from GSTR-2B, and taxpayers receive a complete system-generated PDF for reference. Taxpayers can also correct outbound supplies using GSTR-1A and control inward supplies using the Invoice Management System (IMS), which allows them to accept, reject, or mark invoices as pending to ensure accurate ITC claims.

Beginning with the January 2025 tax period, the GST portal will hard-lock auto-populated values in GSTR-3B, preventing human modifications to data from GSTR-1/1A/IFF or GSTR-2B. To ensure accuracy in the return filing process, make any necessary revisions via GSTR-1A or IMS before final submission. This modification seeks to eliminate errors and improve the GST filing experience.

Advisory on Oct 17th, 2024 by Team GSTN

1. In order to assist taxpayers in filing their returns and minimizing human errors, GSTN has continuously improving the GST return filing process and in this endeavor 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, while the Input Tax Credit (ITC) is auto-populated from GSTR-2B. A detailed system generated pdf of the auto populated GSTR-3B is also provided to all the taxpayers.

2. Now, taxpayers also have a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing them an opportunity to correct their liabilities before filing their GSTR-3B. Additionally, to manage inward supplies and ensure accurate ITC claims in GSTR-3B, taxpayers have the option to take informed actions of accept/reject/pending on inward supplies via the Invoice Management System (IMS) which is now available to the taxpayers.

3. It may be noted that tentatively from January 2025 tax period, the GST Portal is going to restrict making changes in auto-populated liability in pre-filled GSTR-3B from GSTR-1/1A/IFF to further enhance accuracy in return filing. It is once again suggested hereby that in case any change is required in auto-populated liability, the same may please be handled through GSTR-1A.

4. However, locking of auto-populated ITC in GSTR-3B, after the roll out of IMS, will be implemented from a later date. For the same a separate advisory would be issued after addressing all the issues related to IMS, raised by the trade.