GST compliance: Returns to be time-barred after 3 years starting July 2025; experts warn of risks in absence of redressal

Starting with the July 2025 tax interval, Goods and Services Tax (GST) returns will turn into time-barred after three years from the unique due date, the GST Network (GSTN) stated in an advisory issued Saturday. This means taxpayers will now not be ready to file month-to-month or annual returns past that window, with the restriction set to be enforced on the GST portal from August 2025 onward.The transfer is a component of amendments launched by way of the Finance Act, 2023, aimed toward tightening compliance and shutting long-standing return backlogs. The rule applies to a variety of returns, together with GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8 and GSTR-9 — masking outward provide declarations, tax funds, and annual summaries, PTI reported.“The returns will be barred for filing after expiry of three years. The said restriction will be implemented on the GST portal from the July 2025 Tax period,” the GSTN advisory acknowledged.Taxpayers have been urged to reconcile their data and submit any pending returns directly to keep away from everlasting closure of the submitting window.Tax experts, nonetheless, raised issues in regards to the impression on these unable to comply due to litigation, technical glitches or inadvertent delays. (*3*) stated Rajat Mohan, Senior Partner at AMRG & Associates.He additionally pointed to the dearth of a redressal mechanism for distinctive conditions, warning that it might outcome in irreversible denial of Input Tax Credit and trigger monetary pressure for affected companies.The GSTN had first issued a preparatory alert on this measure, indicating the system-level rollout would start in early 2025.