GSTR -3B biggest update from Jan 2025 | GSTR 3B changes Locked from Jan 2025

Summary

The video discusses the upcoming changes to GST filings starting January 2025. Key changes include the automatic population of supply data from GSTR 1 into GSTR 3B, which will then be locked and non-editable. The aim is to reduce human errors and improve the accuracy of filings. The video also covers the importance of filing GSTR 1 correctly to ensure accurate data in GSTR 3B and mentions that ITC data will also eventually be locked in the future. Viewers are encouraged to visit the website for more details on courses related to GST and tax updates.

Takeaways

• 😀 Starting January 2025, GSTR-3B will lock sales data automatically, making it uneditable once it's populated from GSTR-1.
• 😀 It's crucial to file GSTR-1 accurately, as it directly impacts the data pre-filled in GSTR-3B.
• 😀 The GST portal will no longer allow edits to sales data in GSTR-3B after it’s automatically populated from GSTR-1.
• 😀 The new advisory from October 2024 informs taxpayers that GSTR-3B sales data will be frozen after filing, eliminating manual corrections in GSTR-3B.
• 😀 Errors in GSTR-1 or GSTR-3B need to be corrected before submitting; once GSTR-3B is auto-populated, you won’t be able to edit the sales data.
• 😀 For those who have not yet filed GSTR-1, ensure your data is accurate to prevent issues with GSTR-3B filings.
• 😀 After filing GSTR-1, taxpayers can still make corrections via GSTR-1A or IFF before GSTR-3B is generated.
• 😀 The automatic population of tax figures from GSTR-1 into GSTR-3B aims to reduce human errors and improve filing accuracy.
• 😀 Currently, ITC data in GSTR-3B can still be edited, but sales data once frozen cannot be altered.
• 😀 To prepare for the January 2025 changes, start filing GSTR-1 accurately now and stay updated with any new advisory on ITC data freezing.

Q & A

What is the major change in the GST return filing process starting from January 2025?

The major change is that the sales figures in GSTR-3B will be frozen once they are auto-populated from GSTR-1. This means that after filing GSTR-1, the sales data in GSTR-3B cannot be manually edited anymore.

Why is the GST portal introducing the freeze functionality for sales data in GSTR-3B?

The freeze functionality is being introduced to minimize human errors and improve the accuracy of tax returns. It aims to automate the process and reduce mistakes during filing.

What will happen if a mistake is found in the sales data after filing GSTR-1?

If a mistake is found, the only way to correct the sales data will be through GSTR-1A, as the sales data in GSTR-3B will be locked after filing GSTR-1.

Can the ITC (Input Tax Credit) data be edited after filing?

Currently, ITC data is still editable in GSTR-3B, but it is expected that in the future, this data will also be locked, similar to the sales data. The specific date for freezing ITC data will be announced later.

What should taxpayers do to ensure the accuracy of their GST filings?

Taxpayers should file their GSTR-1 carefully, ensuring all data is correct before submitting, as this data will automatically populate GSTR-3B. It is important to reconcile data thoroughly before filing.

Will GSTR-1 filing affect the data in GSTR-3B for January 2025 and beyond?

Yes, once GSTR-1 is filed, the sales data will auto-populate in GSTR-3B, and it will be locked. This means that any changes to sales data will no longer be allowed after submission.

What steps should be taken if a taxpayer has not yet filed their GSTR-1 for January 2025?

Taxpayers should file GSTR-1 carefully and ensure all data is accurate before submission, as it will affect GSTR-3B. They should make sure the data is correct to avoid any issues with locked data in GSTR-3B.

How will the freeze feature impact quarterly taxpayers who file GSTR-1 and IFF?

Quarterly taxpayers will also be impacted by the freeze feature, as once GSTR-1 is filed, the sales data will be auto-populated into GSTR-3B and locked, similar to monthly filers.

Is there any change in the process for correcting mistakes in GSTR-1 or IFF?

Yes, if a mistake is found in GSTR-1 or IFF, corrections must be made through GSTR-1A or IFF before the data is locked in GSTR-3B.

What should taxpayers do if they find errors in the auto-populated data in GSTR-3B?

If errors are found in the auto-populated data in GSTR-3B, taxpayers can correct them before filing, but once the data is locked after January 2025, no further edits will be allowed.