Finance Ministry to Freeze Manual Changes in GSTR-3B to Curb Fake ITC

Illustration depicting the GSTR-3B form with the words 'FAKE' and 'ITC' alongside a financial institution symbolizing the Finance Ministry.

A New Filing System expected by April

The Revenue Department under the Ministry of Finance is planning significant reforms in the GSTR-3B return to curb fake input tax credit. The proposal is to restrict editing or manual intervention in GSTR-3B in two phases.

  • From April 2026 (Phase 1): Taxpayers may no longer be able to edit output tax liability details in GSTR-3B, as these figures will auto-populate directly from GSTR-1.
  • From July (Phase 2): Manual entry of input tax credit in GSTR-3B may also be disabled.

The aim of these measures is to strengthen the GST system and prevent fraudulent ITC claims.

Source:zeebiz.com