Locking of Auto-Populated values in GSTR-3B

The Goods and Services Tax Network (GSTN) is consistently enhancing the GST portal by implementing new features and improvements to streamline the process of tax compliance for taxpayers. These updates aim to simplify the filing of tax returns, improve transparency, and ensure a more efficient and user-friendly experience for all users interacting with the GST portal. To ensure more transparency in GST returns the Goods and Services Tax Network is going to lock the auto populated values in GSTR-3B so that the taxpayer can’t change the figures which are auto populated in GSTR-3B. In this article we are going to discuss this feature of locking of auto populated values in GSTR-3B.

Before going into detailed discussion let us first know about the details which are auto populated in GSTR-3B from GSTR 1 & GSTR 2B. The said details are as follows;

1. Liabilities in tables-3.1 & 3.2 of Form GSTR-3B (except Table-3.1 (d) pertaining to inward supplies liable to reverse charge), are computed by the system on the basis of details of outward supplies as filed in GSTR-1 for the tax period.

2. Details of Input Tax Credit (ITC) and details of inward supplies liable to reverse charge, to be reported in Tables-4 and 3.1 (d) respectively, are computed as per system generated GSTR-2B for the tax period.

This feature of auto population of data in GSTR-3B was introduced from November 2020 Tax Period onwards. These system computed auto populated values are for assisting the taxpayers in filing their GSTR 3B. Taxpayers have to ensure the correctness of the values being reported and filed in GSTR-3B. These auto-populated values can be edited by the taxpayers, if required. The system will prompt the taxpayers with an alert in cases where the variance of the edited values from the auto-populated values is higher than a particular threshold. However, the taxpayers may continue their filing with the edited values and system will not restrict the same. If the taxpayer has entered & saved any values in GSTR-3B before auto-population by the system, the saved values will not be changed/over-written by the system.

The auto-populated values are generated in the following manner:

GSTR-3B table GSTR-1/ GSTR-2B table Reference
Table 3.1(a) Outward taxable supplies (other than zero rated, nil rated and exempted) FORM GSTR-1: Tables-4, 5, 6C, 7, 9, 10 and 11 Values in these tables are computed by doing a total of all the values reported by the taxpayer in the corresponding tables of GSTR-1.

This is auto-populated from FORM GSTR-1. Net positive values shall be reported in respective tables. Net negative values, if any, shall not be considered in the table and system will provide the value as zero
Table 3.1(b) Outward taxable supplies (zero rated) FORM GSTR-1: Tables-6A, 6B and 9
Table 3.1(c) Outward taxable supplies (Nil rated, exempted) FORM GSTR-1: Table-8
Table 3.1(e) Non-GST outward supplies FORM GSTR-1: Table-8
Table 3.2 Of the suppliers shown in 3.1(a) above, details of inter-state supplies made to unregistered persons, composition taxable persons and UIN holders FORM GSTR-1: Place of Supply (PoS)-wise details declared in corresponding tables Place of Supply (PoS)-wise details of inter-state supplies made to unregistered persons, composition taxable persons and UIN holders
3.1(d)
Inward supplies liable to reverse charge		 FORM GSTR-2B: Table 3 Part A Section III Table 4 Part A Section III This is auto-populated from FORM GSTR-2B. Positive values shall be reported in respective table. Net Negative values, if any, shall not be considered in the table and system will provide the value as zero. If the actual liability is more than the value auto-populated by the system, the taxpayers should edit & report the correct value in FORM GSTR-3B.
The system computed values do not contain the values pertaining to the supplies received from unregistered persons liable to reverse charge, and tax to be paid on reverse charge basis on account of Import of Services. Therefore, these details have to be included by the taxpayer by editing the auto-populated value
4A (1, 3, 4, 5) ITC Available FORM GSTR-2B: Table 3 Part A Section I, II, III, IV This is auto-populated from FORM GSTR-2B. Positive ITC values shall be reported in respective tables. Negative values shall be considered as ITC reversal and would be reported in table 4B(2)
4B(2) ITC reversed – (2) Others FORM GSTR-2B: Table 3 Part B Section I Table 4 Part B Section I This is auto-populated from FORM GSTR-2B. This covers the following:

 a. Positive values of all credit notes, on which ITC is available. If this is negative, then credit may be reclaimed subject to reversal of the same on an earlier instance.
b. Positive values of all credit notes, on which ITC is not available.
c. In case there are negative values in ITC available table 4A (1,3,4,5), then such negative values shall be reversed and considered in this table.

What is the New Hard-Locking System?
An advisory was issued on dated 17.10.2024 regarding the Locking of auto-populated values in GSTR-3B. Wherein it was mentioned that from January 2025 tax period onwards the taxpayer would not be able to edit the auto-populated figures of GSTR-3B, meaning thereby the said auto populated figures would be locked from the tax period January 2025 onwards.

In the said advisory it was also mentioned that since the taxpayers have a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing them an opportunity to correct their liabilities before filing their GSTR-3B. Additionally, to manage inward supplies and ensure accurate ITC claims in GSTR-3B, taxpayers have the option to take informed actions of accept/reject/pending on inward supplies via the Invoice Management System (IMS) which is now available to the taxpayers.

Accordingly it was suggested in the said advisory that if any change is required in auto-populated values of GSTR-3B, the same should be handled through GSTR-1A or IMS.

Deferment of Locking of auto-populated liability in GSTR-3B:
As per the advisory dated 17.10,2024 the locking of auto populated data in GSTR-3B was to be implemented from January 2025 tax period. However, in this respect again an advisory was issued on dated 27.01.2025 by the GSTN wherein it was mentioned that due to the various requests have been received from the trade seeking time for the same, the decision of making non-editable of auto-populated liability in GSTR-3B is currently not being implemented from January tax period, on the GST Portal. In the said advisory it was also mentioned that the said locking of auto populated values in GSTR-3B will be introduced soon and prior information would be provided before implementing such change.

Thus from the above discussion it is clear that presently the auto populated values of GSTR-3B can be edited/changed by the taxpayers but very soon the locking of auto populated values in GSTR-3B will be introduced with prior intimation.

Impact and Benefits of Hard Locking GSTR-3B Auto-Populated Values
Errors can be reduced while filing GSTR-3B: Due to the locking of auto-populated values in GSTR-3B, the errors done by taxpayers can be reduced and from the view point of the department it will provide an assurance that tax liability has been accurately paid by the taxpayer and also ITC has been accurately reported in GSTR-3B.

Conclusion
The hard-locking feature would lock the auto-populated values of GSTR-3B so that the taxpayer can’t edit the same. This feature will prevent discrepancies while filing GST Returns. Currently it is not implemented but very soon it would become effective with prior information.

Disclaimer: The information given in this article is solely for purpose of understanding the law. It is completely based on the interpretation of the author and cannot be constituted as a legal advise, the author of this article and Lawcrux team is not responsible for any legal issues if arises on the basis of the interpretation given above.