The Goods and Services Tax Network (GSTN) announced that starting early 2025, GST taxpayers will no longer be able to file monthly and annual returns after three years from the original due date. This change will affect all GST returns, including outward supply returns, liability payments, annual returns, and tax collected at source (TCS) returns, making them time-barred once the three-year window expires.

In an advisory, GSTN urged taxpayers to reconcile their records and submit any overdue returns to avoid future complications.

The advisory is especially important for businesses and individuals who have delayed GST filings for previous periods, as the upcoming restriction could result in missed filings becoming permanent.

GSTN emphasised that taxpayers should take advantage of the remaining time to ensure all past GST returns are submitted before the three-year cutoff is enforced.
Experts noted that non-compliance with the new rule could lead taxpayers to be marked as defaulters under GST law.

They consider this a positive move by GSTN, as it allows taxpayers to avoid potential issues like GST demand notices and penalties.

In a separate development, India’s new Goods and Services Tax (GST) amnesty scheme will come into effect on November 1, 2024. This will offer relief to taxpayers with outstanding GST demands from 2017-18 to 2019-20.

The scheme waives interest and penalties on non-fraudulent cases.

However, taxpayers still need to settle their outstanding tax dues, with the deadline for payments set as March 31, 2025.

The Ministry of Finance officially notified the scheme, following the announcement in Budget 2024. The Central Board of Indirect Taxes and Customs (CBIC) confirmed that taxpayers eligible under Section 128A can apply for waivers on interest and penalties relating to specific GST demands raised under Section 73 of the GST Act.