GST Return Filing to Undergo Major Overhaul from October 1, 2025: Know Expected Changes:

Govt. is likely to introduce major changes in the process of filing GST returns, effective from October 1, 2025, such as manually managing ITC and invoice approvals in IMS and others.

Autofill of ITC Ends; Taxpayers to Manually Accept/Reject Invoices in IMS

Saloni Kumari

Sep 30, 2025

Last update on Sep 30, 2025

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

About Author

Saloni Kumari

Content Writer

Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].