With the enactment of the Finance Act, 2023 (No. 8 of 2023) and the subsequent issuance of Notification No. 28/2023 – Central Tax dated 31 July 2023, a significant compliance deadline looms for taxpayers under the Central Goods and Services Tax Act, 2017 (CGST Act). The amendment introduces a three-year time-limit for filing certain GST returns. This means that pending returns which exceed three years from their due date will be barred from filing on the portal from a specified date.

Given the large number of taxpayers with pending filings — monthly, quarterly and annual — this change demands immediate action to avoid losing filing rights, forfeiting benefits and exposing to compliance risks.

Legal/Regulatory Background

• The Finance Act, 2023 (8 of 2023), dated 31 March 2023, introduced amendments that impact the CGST Act (and allied IGST/UTGST) by inserting or amending sections which, among other things, provide for the time-bar on filing returns.
• The Central Government, exercising the powers under clause (b) of sub-section (2) of section 1 of the Finance Act, 2023, issued Notification No. 28/2023 – Central Tax on 31 July 2023 to appoint the dates on which those amended provisions will come into force.
• According to the notification:
  • The provisions of Sections 137 to 162 of the Finance Act, 2023 (except sections 149 to 154) will come into force on 1 October 2023.
  • The provisions of Sections 149 to 154 of the Finance Act, 2023 shall apply from 1 August 2023.
• Significantly, one of the amendments is to section 37 (statement of outward supplies), section 39 (return of liability), section 44 (annual return) and section 52 (tax collected at source) of the CGST Act — meaning returns under those sections will now be subject to the three-year filing deadline.

Scope: Which Returns Are Covered?

The time-bar applies to returns filed under the following sections of the CGST Act:

• Section 37 – Statement of outward supplies (i.e., forms like GSTR-1/IFF)
• Section 39 – Return including liability discharge (e.g., GSTR-3B)
• Section 44 – Annual return (e.g., GSTR-9 / GSTR-9C)
• Section 52 – Tax Collected at Source (TCS) by e-commerce operators (GSTR-8)

Therefore, the forms impacted include (but may not be restricted to):

• GSTR-1 / IFF (monthly/quarterly outward supply statements)
• GSTR-1Q (quarterly IFF for certain taxpayers)
• GSTR-3B / M (monthly/quarterly summary return)
• GSTR-3BQ (quarterly form for small taxpayers)
• GSTR-4 (composition scheme annual return)
• GSTR-5 (non-resident taxable person return)
• GSTR-5A (non-resident OIDAR service provider)
• GSTR-6 (ISD return – Input Service Distributor)
• GSTR-7 (TCS return by deductor)
• GSTR-8 (e-commerce operator collecting TCS)
• GSTR-9 / GSTR-9C (annual return and audit reconciliation)

As one tax-commentary explains:

“The taxpayers shall not be allowed to 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, Section 39, Section 44 and Section 52.”

What is the Three-Year Time-Bar?

In essence:

• Once the due date for filing a particular return has passed, the taxpayer has up to three years from that due date to file the return.
• After the lapse of this three-year window, the GST portal will block the filing of that return — meaning the taxpayer cannot file via the normal return route.
• The portal/blocking mechanism is system-driven, meaning delays or omissions may lead to automatic denial of filing.
• The time-bar applies even if there is no assessment or audit initiated — the filing opportunity is lost purely on the expiry of the window.

When Will the Portal Blocking Begin?

• Though the legal amendment is effective from 1 October 2023 (via Notification No. 28/2023) for the majority of the amended sections, actual operational blocking on the portal is expected to begin for tax periods that exceed three years from the due date.
• Tax-advisories indicate that returns whose due date was three years back or more (i.e., for periods in or before July-Sept 2022) will be barred from filing from the October 2025 tax period (or thereabouts).
• For example:
  • If a monthly return (GSTR-3B) was due in September 2022, the three-year window ends September 2025; hence from October 2025 the portal may block.
  • For an annual return for FY 2020-21, which was due latest by perhaps December 2021 (depending on turnover), the three-year window may expire end of 2024 or early 2025 — hence sooner action required.
• Note that exact blocking date may vary depending on user category, form type, and portal implementation schedule — taxpayers should not rely solely on system notifications.

Illustrative Table: Returns Likely to be Barred

Here is a summary (for context only) of which return periods may become barred if not filed — based on the “three years from due date” rule:

Note: These illustrative periods are derived from expert guidance and media summaries; actual due dates may differ depending on taxpayer category, turnover thresholds, and extension notifications.