GSTR-3B: Two Important Changes from January 2025
Important Update
| Taxpayers will not be able to modify values auto-populated in GSTR-3B from GSTR-1/1A/IFF or GSTR-2B as it will automatically derived from supplies declared in GSTR-1, GSTR-1A, or IFF. |
| FORM GSTR-3B will be frozen from January 2025, as it changes the previous process where GSTR-3B could be filed even if GSTR-2B wasn’t available. Now, GSTR-3B can be filed only after FORM GSTR-2B of the said tax period is made available on the portal. |
Auto-Populated Data In GSTR-3B Form
- Taxpayers will no longer be able to modify values auto-populated in GSTR-3B from GSTR-1/1A/IFF or GSTR-2B.
- It will automatically derived from supplies declared in GSTR-1, GSTR-1A, or IFF.
Suggested Actions for Taxpayers
For outward Supplies
- Taxpayers can correct errors in outward supplies reported in GSTR-1 or IFF via GSTR-1A.
- This ensures accurate liability is reflected before filing GSTR-3B.
For Inward Supplies
- Taxpayers can manage ITC claims by taking informed actions on inward supplies available in IMS.
- Options include accept, reject, or pending invoices, ensuring correct ITC claims in GSTR-3B.
Key Amendments
The GST Council has recommended significant amendments in the CGST Act, 2017 and CGST Rules, 2017 to strengthen the functionality of the Invoice Management System (IMS). Here are the key amendments:
Amendment to Section 38 of CGST Act, 2017 and rule 60 of CGST Rules, 2017
Purpose
- To establish a legal framework for generating FORM GSTR-2B.
- To improved accuracy in input tax credit (ITC) reconciliation.
In Detail
FORM GSTR-2B will now be generated based on the actions taken by taxpayers on the IMS. This will ensures that ITC details are aligned with suppliers invoices uploaded in IMS.
Amendment to Section 34(2) of CGST Act, 2017
Purpose
- To mandate ITC reversal for credit notes issued by suppliers.
In Detail
When a credit note is issued by a supplier, the recipient must reverse the corresponding ITC. This will allow the supplier to reduce their output tax liability and align between ITC claimed and credit adjustments.
Insertion of Rule 67B in CGST Rules, 2017
Purpose
- To prescribe the procedure for supplier’s output tax adjustment.
In Detail
Rule 67B will provide a manner in which the output tax liability of the supplier shall be adjusted against the credit note issued by him.
Amendment to Section n 39 (1) of CGST Act, 2017 and rule 61 of CGST Rules, 2017
Purpose
- To link the filing of FORM GSTR-3B with the availability of FORM GSTR-2B.
In Detail
FORM GSTR-3B of a tax period shall be allowed to be filed only after FORM GSTR-2B of the said tax period is made available on the portal.
Example
Earlier, if your GSTR-1 for November 2024 is filed on 2nd December 2024, GSTR-3B reflects on the same day. But from now you can file GSTR-3B only after FORM GSTR-2B of the said tax period is made available on the portal.
Note: GSTR-3B can only be filed after GSTR-2B is generated, ensuring ITC reflects accurately.
Conclusion
The new provisions will shorten the time available for filing GSTR-3B, aligning it with the availability of GSTR-2B. But this change aims to improve the compliance, ITC claims are based on up-to-date, and enhance the accuracy of tax filings.
FAQs
What is the auto-population feature in GSTR 3B?
The auto-population feature automatically fills sales liability and turnover details in GSTR 3B based on data from GSTR 1 and IFF.
Can taxpayers edit the auto-populated figures in GSTR 3B?
No, the sale figures in GSTR 3B will be frozen and it cannot be edited after auto-population.
How the auto-populated sales data in GSTR-3B be corrected?
Taxpayers need to make any necessary adjustments using GSTR 1A before filing GSTR 3B.
What is GSTR 1A?
GSTR 1A is the mechanism for making adjustments or corrections to data before it is reflected in GSTR 3B.
Deepak Kumar Singh Founder & Senior Business Consultant Singh and Associates With over 6 years of comprehensive experience in the fields of taxation, accounting, and corporate law, Deepak Singh is the founder and senior consultant at **Singh and Associates**, a leading advisory firm providing a wide range of business services. Over the years, Deepak has built a solid reputation for his expertise in complex tax issues and his commitment to delivering practical, effective solutions to both businesses and individuals. Deepak’s core specialization lies in **GST (Goods and Services Tax)**, **Income Tax**, and **litigation-related matters**. His deep understanding of these areas allows him to assist clients with tax planning, compliance, and dispute resolution. He has successfully represented numerous clients in tax-related audits and legal proceedings, ensuring they navigate the intricate landscape of tax laws with ease and stay fully compliant with the latest regulations. Beyond taxation, Deepak has gained significant experience in **company incorporation** and **compliance management**. He provides end-to-end support for businesses, helping them with the process of establishing a legal entity, ensuring proper registration, and adhering to the necessary corporate governance and statutory compliance requirements. His expertise helps companies maintain smooth operations by staying on top of regulatory changes and fulfilling their legal obligations. In addition to his taxation and corporate services, Deepak has an in-depth understanding of **labor law litigation**, where he assists businesses in managing employment-related disputes. Whether handling issues related to labor contracts, employee disputes, or ensuring compliance with labor laws, Deepak helps businesses navigate these challenges to avoid potential risks and liabilities. Deepak is also highly experienced in **transfer pricing**, offering businesses advisory services on international transactions and cross-border taxation. He ensures that clients maintain compliant and tax-efficient pricing structures, minimizing their exposure to risks in the global market. As the founder of **Singh and Associates**, Deepak takes a client-centric approach, offering personalized, strategic guidance to address each client’s unique needs. His proactive approach, combined with his ability to translate complex tax and legal concepts into actionable advice, has earned him the trust of clients across various sectors. Known for his attention to detail and comprehensive knowledge of business law, Deepak is committed to providing results-oriented services that help businesses achieve financial growth while ensuring regulatory compliance. His firm, **Singh and Associates**, has established itself as a reliable partner for businesses seeking expert guidance on taxation, legal matters, and corporate compliance. Deepak is dedicated to staying updated with the latest developments in tax and business law. His ongoing commitment to professional growth ensures that Singh and Associates remains at the forefront of industry trends, offering innovative and compliant solutions to meet the evolving needs of businesses in today’s competitive landscape.