GST Return Filing to Undergo Major Overhaul from October 1, 2025: Know Expected Changes
The GST department is soon to introduce major changes in the process of filing GST returns, effective from October 1, 2025. Among these changes, one is that the autofilling of ITC (Input Tax Credit) will stop, and taxpayers will need to manually accept and reject invoices one by one in IMS (Invoice Management System) and form their own GSTR 2B.
As of now, ITC (Input Tax Credit) used to be verified from the GSTR 2B return at the time of filing the GSTR-3B. From October 1st onwards, this system will be removed, and taxpayers will need to manually access details from GSTR 2B to claim ITC, as data will no longer be auto-populated. After October 1st, taxpayers will need to manually visit the Invoice Management System (IMS) for the purpose of accepting or rejecting the invoices and generating GSTR3B. This change is aimed at reducing the chances of disputes between buyers and sellers. It will avoid passing bogus credits and instead will ensure only genuine credits are passed.
Major Changes in Credit Note with Effect form 1st October 2025
No reduction in output tax liability of the supplier shall be permitted, if the:
(i) ITC as is attributable to such a credit note, if availed, has not been reversed by the recipient, where such recipient is a registered person; or
(ii) Incidence of tax on such supply has been passed on to any other person, in other cases.”.
This has been done to give a legal color to Invoice Management System