GST Return Filing to Undergo Major Overhaul from October 1, 2025: Know Expected Changes
The GST department is soon to introduce major changes in the process of filing GST returns, effective from October 1, 2025. Among these changes, one is that the autofilling of ITC (Input Tax Credit) will stop, and taxpayers will need to manually accept and reject invoices one by one in IMS (Invoice Management System) and form their own GSTR 2B.
One of the chartered accountants (CAs) named Karim Lakhani has said that, as of now, ITC (Input Tax Credit) used to be automatically filled from the GSTR 2B return at the time of filing the GSTR-3B. From October 1st onwards, this system will be removed, and taxpayers will need to manually access details from GSTR 2B to claim ITC, as data will no longer be auto-populated. After October 1st, taxpayers will need to manually visit the Invoice Management System (IMS) for the purpose of accepting or rejecting the invoices and generating GSTR3B. This change is aimed at reducing the chances of disputes between buyers and sellers. It will avoid passing bogus credits and instead will ensure only genuine credits are passed.
Further, tax professionals are saying that it may be possible with the new changes from October 1st; if a supplier issues a credit note and the recipient rejects it in IMS, the output tax liability of the supplier will not decrease. This will make sure there is no loss to the government’s revenue.
The former president of the Gujarat Sales Tax Bar Association, Harish Panchal, said, “From Oct 1, some returns will also get time-barred. GSTR-1 or GSTR-3B of Sep 2022 will become time-barred in Oct 2025.”
