The Latest on GSTR-3B Table 3.2: Insights from the May 2025 GSTN Advisory

Attention GST Filers: Understanding GSTN's May 2025 Advisory on GSTR-3B Table 3.2

The Goods and Services Tax Network (GSTN) routinely releases advisories to assist taxpayers with return filing and compliance. A recent advisory issued by GSTN in May 2025 has clarified important points regarding the reporting of figures in Table 3.2 of Form GSTR-3B. This table, which is essential for detailing outward supplies made to particular recipient categories across different states, has garnered attention due to anticipated system updates. This blog post aims to provide an in-depth analysis of the May 2025 advisory and its impact on GST filers.

Grasping GSTR-3B and Table 3.2

GSTR-3B is a monthly summary return that all regular registered taxpayers must submit. It functions as a self-declaration form in which taxpayers provide consolidated information on outward supplies made, inward supplies subject to reverse charge, input tax credit (ITC) claimed, tax liabilities, and payments.

Table 3 of GSTR-3B addresses details regarding outward supplies and inward supplies liable to reverse charge. More specifically, Table 3.2 is meant for reporting information about inter-state outward supplies made to:

• Unregistered Persons
• Composition Taxable Persons
• UIN (Unique Identification Number) holders

The data recorded in this table is crucial for the precise settlement and distribution of Integrated Goods and Services Tax (IGST) revenue between the Centre and the States. Accurate reporting in this section is also vital for ensuring smooth reconciliation with the details provided in GSTR-1.

The Original Plan: Auto-population and Non-Editability

Before the May 2025 advisory, GSTN had informed taxpayers through an earlier notice (dated April 11, 2025) that the figures in Table 3.2 of GSTR-3B would be auto-populated based on the information provided by taxpayers in their GSTR-1, GSTR-1A, or Invoice Furnishing Facility (IFF). The key change announced was that, starting from the April 2025 tax period (which is due for submission in May 2025), these auto-populated figures in Table 3.2 would become non-editable.

The purpose of this adjustment was evidently to improve data accuracy and consistency between GSTR-1 (which records invoice-level information) and GSTR-3B (the summary return). It aimed to minimize manual errors in GSTR-3B and ensure that the summary data aligns with the detailed outward supply information already documented in GSTR-1/IFF. Under the intended non-editable policy, any amendments to the auto-populated information in Table 3.2 could only be accomplished by modifying the corresponding details in GSTR-1A or in the GSTR-1/IFF submitted for future tax periods, rather than directly in GSTR-3B.

The May 2025 Advisory: A Temporary Delay

Nevertheless, the recent advisory released by GSTN in May 2025 has provided an important update regarding this planned change. GSTN recognized that it had received numerous representations and concerns from taxpayers concerning the execution of the non-editable feature for Table 3.2.

Taking into account the issues raised by taxpayers and in the interest of taxpayer convenience to ensure smooth filing, GSTN has opted to postpone the implementation of the non-editable feature for Table 3.2 of GSTR-3B for the time being.

Consequently, for the GSTR-3B filing for the April 2025 tax period (due in May 2025) and future periods, until further notice is given, Table 3.2 will remain editable.

Effects on GST Filers

The May 2025 advisory offers immediate respite to taxpayers who may have encountered difficulties with the auto-populated data or the inability to modify Table 3.2 directly in GSTR-3B. However, the advisory includes a significant caution and a reminder:

• Table 3.2 Remains Editable: Taxpayers are still able to manually adjust the figures in Table 3.2 of GSTR-3B.

• Accuracy is Still Paramount: Despite the ability to edit, the advisory strongly recommends that taxpayers report or amend any auto-populated entries as necessary and submit their returns accurately, ensuring the validity of the reported information.

• Importance of GSTR-1 Accuracy: The advisory subtly emphasizes the vital need for precise reporting of inter-state supplies to unregistered individuals, composition taxpayers, and UIN holders in GSTR-1/IFF. Since GSTR-1/IFF serves as the basis for auto-population in GSTR-3B, ensuring accuracy at this stage is the most effective approach to guarantee correct auto-population in Table 3.2, regardless of its editable condition.

• Future Implementation: The deferral is not permanent. GSTN has indicated that the concerns expressed by taxpayers are under review, and any eventual implementation of the non-editable format will be communicated separately. Taxpayers should be prepared for the likelihood that this change will take place in the future once the raised issues have been resolved.

Why Accurate Reporting in GSTR-1 is Key (Even with Editable 3.2)

Even though Table 3.2 in GSTR-3B is currently modifiable, ensuring precision in GSTR-1/IFF is important for various reasons:

• Seamless Auto-population: Accurate information in GSTR-1 facilitates precise auto-population in GSTR-3B, minimizing the necessity for manual adjustments.

• Avoiding Mismatches: Discrepancies between GSTR-1 and GSTR-3B can lead to inquiries from the department or complications during audits or assessments.

• Correct IGST Settlement: Accurate reporting in GSTR-1/IFF and thus in Table 3.2 guarantees the proper distribution of IGST revenue to the respective states.

• Preparation for Non-Editability: Developing the practice of filing precise GSTR-1/IFF will simplify the transition when Table 3.2 eventually becomes non-editable.

Conclusion

The GSTN advisory issued in May 2025 offers a temporary relief by allowing Table 3.2 of GSTR-3B to remain editable. While this alleviates immediate concerns of taxpayers related to the proposed non-editable feature, it serves as a clear reminder of the importance of meticulous and accurate reporting of inter-state supplies to unregistered individuals, composition taxpayers, and UIN holders.

GST filers should take advantage of this timeframe to ensure their methods for recording and reporting outward supply data in GSTR-1/IFF are solid and correct. Paying close attention to details such as the Place of Supply (POS) for inter-state B2C transactions is crucial. By focusing on accuracy in GSTR-1/IFF, taxpayers can confirm that the auto-populated details in GSTR-3B are valid, facilitating their compliance efforts both now and when the non-editable feature for Table 3.2 is ultimately implemented. Stay updated on future notifications from GSTN regarding this change.

Leave a reply