The Goods and Services Tax Network (GSTN) has issued an important advisory for taxpayers across India, reminding them to file all pending GST returns before the three-year expiry period mandated by the Finance Act, 2023. This development is critical for businesses and individuals alike, as failure to comply will result in permanent restrictions on filing overdue returns through the GST portal.
Why the 3-Year Filing Deadline Matters
The Finance Act, 2023, introduced a significant compliance rule that restricts the filing of GST returns beyond three years from their original due dates. Starting from the September 2025 tax period, this restriction will come into full effect. Once implemented, taxpayers will no longer be able to submit returns that were due three years ago or earlier.
This measure is aimed at improving compliance discipline, clearing backlogs, and ensuring timely filing of GST returns. For businesses, however, it is a wake-up call to review pending returns immediately and avoid losing the chance to regularize past tax obligations.
Returns That Will Be Affected
The GST portal will block delayed filings for a wide range of forms. The impacted returns include:
- GSTR-1 / IFF – Statement of outward supplies
- GSTR-3B / GSTR-3BM – Summary return of inward and outward supplies, along with tax liability
- GSTR-4 – For composition taxpayers
- GSTR-5 – For non-resident taxable persons
- GSTR-6 – For Input Service Distributors (ISD)
- GSTR-7 – For persons required to deduct TDS under GST
- GSTR-8 – For e-commerce operators required to collect TCS
- GSTR-9 and GSTR-9C – Annual return and reconciliation statement
For example, returns related to August 2022 in the case of monthly filers will no longer be accepted after September 2025. Similarly, for FY 2020-21, taxpayers will not be able to file GSTR-9 or GSTR-9C from October 1, 2025, onwards.
Impact on Taxpayers
This change will directly impact taxpayers who have been delaying their GST filings due to operational issues, disputes, or negligence. Key consequences include:
- Permanent bar on late filing: Returns older than three years will not be accepted under any circumstances.
- Loss of input tax credit (ITC): Businesses failing to file returns may lose eligible ITC claims.
- Penalties and interest: Non-compliance may invite financial liabilities and legal scrutiny.
- Blocked compliance history: A poor compliance record may affect business credibility, especially in audits and tenders.
Immediate Action Required
Taxpayers are strongly advised to take the following steps before the September 2025 deadline:
- Reconcile records – Match books of accounts with GSTR-2B and other GST data.
- Identify pending returns – Review monthly, quarterly, and annual return filings since 2020.
- File overdue returns – Ensure all backlogs are cleared well before the expiry period.
- Seek professional help – Consult a GST practitioner or tax expert if discrepancies or disputes exist.
- Maintain timely compliance – Set internal reminders to avoid repeat delays in future filings.
Key Takeaway
The GSTN’s advisory highlights a crucial compliance deadline for taxpayers. From October 1, 2025, the GST portal will no longer accept returns whose due dates have crossed the three-year limit. This makes it essential for businesses and individuals to act now and file all pending GST returns without delay.
By staying proactive, taxpayers can avoid penalties, secure their input tax credit, and maintain a clean compliance track record. The message is clear: file your pending GST returns before the three-year window closes permanently.