GST Changes Coming in GST from October 2025

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No Auto ITC in GSTR-2B : Until now: Input Tax Credit (ITC) auto-appeared in GSTR-2B (based on suppliers’ filing). From Oct 2025: ITC won’t auto-flow. This is to be noted that as per New Rule: Only invoices that you accept in IMS (Invoice Management System) will count for ITC. If you forget to accept, your ITC is blocked : higher tax outflow. This Impact: Businesses must check and accept invoices every month, without fail.
Credit Notes Tied to Buyer’s Action : Supplier can issue a credit note to reduce their tax liability. But from Oct 2025, they can’t use it unless the buyer first reverses ITC on that invoice. If buyer delays or forgets : supplier stuck with tax liability. Its Impact: Coordination between buyer and supplier becomes critical.
Locked GSTR-3B : Currently: GSTR-3B allows manual adjustments to match liabilities. From Oct 2025: Liability will be auto-populated from GSTR-1/IFF. GSTR-3B will become non-editable. If there’s a mistake : correction must be made in GSTR-1A (not in 3B). its Impact: Businesses must get invoices 100% correct in GSTR-1/IFF upfront.
3-Year Time-Bar on Returns: New restriction: Any GST return (GSTR-1, GSTR-3B, etc.) cannot be filed after 3 years from its due date. If missed : permanently blocked. Pending backlog (older than 3 years) : gone forever. Impact: All businesses must clear pending returns immediately before the cutoff.

Why This GSTR Rule is Serious with respect to ITC.,

ITC gets stuck or lost : working capital crunch. Locked liabilities = less flexibility to fix errors. Missed returns : permanent non-compliance, penalties, and no chance to file later. Even a small lapse : notices + cash outflow.
What Businesses Must Do Right Now : Reconcile monthly: Accept/reject invoices in IMS timely. Clear backlogs: File all pending returns (esp. pre-2022 ones). Train staff: GST will allow zero mistakes. Vendor management: Choose reliable vendors; their compliance now directly impacts your ITC.
From Oct 2025, GST becomes stricter, more automated, and leaves no room for manual fixes. Compliance discipline becomes the only way to survive.