Categories: GST FillingOthers

GST Changes Coming in GST from October 2025

GST Changes Coming in GST from October 2025

  • 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.
Tags: ITC gets stuck or lost
3 hours ago
Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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