GST WEEKLY UPDATE : 10/2025-26 (08.06.2025) BY CA VIPUL KHANDHAR

-By CA Vipul Khandhar

1. Advisory regarding non-editable of auto-populated liability in GSTR-3B:

1. GST Portal provides a pre-filled GSTR-3B, where the tax liability gets auto-populated based on the outward supplies declared in GSTR-1/ GSTR-1A/ IFF. As of now taxpayers can edit such auto populated values in form GSTR 3B itself.

2. With introduction of form GSTR 1A, taxpayer now has 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 in the same return period.

3. In view of the same, from July,2025 tax period for which form GSTR 3B will be furnished in August,2025 such auto populated liability will become non editable. Thus, taxpayers will be allowed to amend their auto populated liability by making amendments through form GSTR 1A which can be filed for the same tax period before filing of GSTR 3B.

4. For more details, kindly refer to the advisory dated January 27, 2025 and advisory dated October 17, 2024 , issued by GSTN on this issue. 

2. Attention – Hard – Locking of auto-populated liability in GSTR-3B:

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.

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.

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.

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 

3.    Attention – Hard – Locking of auto-populated liability in GSTR-3B

1. Please refer to the advisory dated October 17, 2024, regarding the restricting the editing of auto-populated liability in GSTR-3B from the January 2025 tax period.

2. However, various requests have been received from the trade seeking time for the same. Therefore, the decision of making non-editable of auto-populated liability in GSTR-3B is currently not being implemented from January tax period, on the GST Portal.

3. It may be noted that the above change will be introduced soon and trade will be informed accordingly. Taxpayers are encouraged to prepare for the said change.

4. Barring of GST Return on expiry of three years:

As per the Finance Act,2023 (8 of 2023), dt. 31-03-2023, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return under Section 37 (Outward Supply), Section 39 (payment of liability), Section 44 ( Annual Return) and Section 52 (Tax Collected at Source). These Sections cover GSTR-1, GSTR 3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR 7, GSTR 8 and GSTR 9.

Hence, above mentioned returns will be barred for filing after expiry of three years. The said restriction will be implemented on the GST portal from July 2025 Tax period. Hence, the taxpayers are once again advised to reconcile their records and file their GST Returns as soon as possible if not filed till now.

5. Important Judgements:

(i) Allahabad HC: GST ITC Cannot Be Denied to Buyer Due to Supplier’s Default

(Applicant – M/S R.T. Infotech)

On 24.06.2022, the applicant contested the order of the Additional Commissioner Grade-2 (Appeals), Commercial Tax, Meerut (Respondent No. 1), for the period July 2017 to March 2018, as well as the order dated 22.10.2021 passed by the Deputy Commissioner, State Tax, Sector-4, Meerut (Respondent No. 2), for the same period.

The petitioner, who is a registered supplier with a valid GSTIN, has been authorised to utilise the mobile recharge services provided by M/s Bharti Airtel Ltd., located in Vibhuti Khand, Gomti Nagar, Lucknow, for the fiscal year 2017-18.

During this period, the petitioner availed services through recharge coupons from M/s Bharti Airtel Ltd., supporting a total of 7 tax invoices, which amounted to ₹1,58,46,502. As a result, the petitioner claimed an Input Tax Credit (ITC) of ₹28,52,370.

It was alleged by the GST department that the ITC was incorrectly claimed as the supplier (M/s Bharti Airtel Ltd) did not deposit the tax in the government treasury, invoking Section 16(2)(c) of the CGST Act.

It was claimed by the applicant that all the payments incurred via the banking channel, and he could not control whether the supplier deposits tax or submits the returns.

In Suncraft Energy Pvt. Ltd. (2023) and the Madras HC ruling in D.Y. Beathel Enterprises, the applicant relied on the ruling of the Apex court that held that the buyers must not be penalised for the defaults of the seller.

In the case of Suncraft Energy (supra), the Hon’ble Supreme Court had time to recognise that the party that has filed the tax on the invoices being raised and not releasing the duties via the counterpart of the seller, the court desired to remand the case for making a due inquiry from the supplier.

Likewise, in the case of D.Y. Beathel Enterprises Vs. State Tax Officer (Data Cell), Tirunelveli, 2022 (58) G.S.T.L. 269 (Mad.), the Madras High Court opined that in the absence of non-performance of duty by the supplier, measures are to be opted against the supplier simultaneously, and the purchaser would not be suffered only.

On these two rulings, the court relied and took the stand of the applicant and permitted the writ petition.

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.

(The author is well known Chartered Accountant practicing on Direct tax and Indirect Tax at Ahmedabad)