The statute-barred period for GST, meaning the time after which tax authorities cannot typically reassess a filed return, is generally four years in jurisdictions like Canada (CRA) and Australia (ATO). After this period, any reassessment is generally invalid, unless fraud or misrepresentation is proven. In India, GST returns are time-barred for filing 3 years after the due date.
There is however a 10 year limitation period that applies to GST/HST tax debts. This limitation period is 'restarted' whenever the CRA takes action to collect the debt or the taxpayer acknowledges the tax debt, which can mean that a GST/HST debt more than 10 years old is still collectible.
4-year credit time limit
If you account for GST on a cash basis, the earliest tax period in which you could claim a GST credit for a purchase is the tax period in which you make the payment. If you make the payment over multiple tax periods, the 4-year credit time limit applies separately to each part of the payment.
Barring of GST Return on expiry of three years
The GST network issued another advisory on 7th June 2025, implementing the rule of time-barring of GST return filing beyond three years from the due date. By this update, taxpayers will not be able to file GST returns after three years from the due date of such return.
It starts from the day you become entitled to the credit, typically the date of the tax invoice or the date the payment is made, depending on your accounting method. After four years, you can no longer amend or include a claim for that GST credit in your Business Activity Statement (BAS).
You have up to three years to ask for a retroactive payment.
On July 01, 2024, the implementation of the Goods and Services Tax (GST) will complete 7 years. Since March 2023, the collections for every month stand in excess of ₹1.5 lakh crore.
– Time limit to issue notice: 3 years from the due date of filing annual return for the relevant year. – Time limit to pass the order: 3 years from the due date of annual return. Example: For FY 2021–22, the time limit to issue notice is 31st December 2025 (assuming annual return due date is 31st December 2022).
Therefore, upon non –filing of GST returns or missing out the GST due dates, the GST law prescribes a general penalty. The maximum penalty that may be imposed is Rs. 5,000. The taxpayer will be required to pay interest on late payment of GST at a rate of 18% annually in addition to the late payment penalty.
India's GST reforms in 2025 focus on simplifying GST slabs. 99% of items in the 12% slab moved to 5%, and 90% of those in the 28% slab reduced to 18%. This reform has greatly reduced the burden of taxation and make goods more reasonable for consumers.
Thus, practically every situation is covered. The GST law requires that every claim for refund is to be filed within 2 years from the relevant date. Treatment for Zero Rated Supplies: One of the categories under which claim for refund may arise would be on account of exports.
Backdating a GST registration is limited to 4 years. This means, unless there is fraud or evasion: we can't backdate your GST registration by more than 4 years. you are not required to be registered before that date.
The application for a GST refund must be submitted using form RFD 01 within two years from the relevant date. The form also requires approval from a Chartered Accountant. There are also numerous online tools to calculate GST refund.
The 'five year rule' states that residential premises are not considered to be 'new' if they have been rented out as residential premises for five or more years since they first became residential premises, or were last built or substantially renovated.
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.
A person can apply for a refund of taxes, interest, or any other amount paid, within two years from the relevant date in the prescribed form (GST RFD-01) and manner. Either the date of receipt of convertible foreign exchange or the date of receipt of Indian rupees, if permitted by RBI.
Starting 1 July 2025, the GST portal will permanently disable the filing of any GST return that is more than three years past its original due date. This restriction arises from amendments introduced under the Finance Act, 2023.
Daily Late Fee: A late fee of ₹50 per day is paid on Central GST (CGST) and State GST (SGST). The cumulative amount of the late fee is ₹100/day of CGST and SGST combined. Maximum Cap: The maximum amount of the late fee is ₹5,000 per type of returns (CGST and SGST).
Grace periods typically range from 15 to 30 days. While technically a customer could wait until the exemption date to pay, insurers may still treat the premium as GST-inclusive based on the due date, not the payment date. ...
Further, Tribunal has the power to condone delay (of up to 3 months in case of appeals or 45 days in case of cross objections, beyond the mandatory period) on being satisfied that there is sufficient cause for the delay.
Rule 42: Reversal of ITC on inputs/input services
This would also include zero-rated supplies like exports and supplies to SEZ. ITC on the inputs that is assumed to have been used partly in making taxable supplies and partly in making exempt supplies or used for a non-business purpose.
The purpose of Section 74 is to counter attempts by taxpayers and discourage further such attempts to evade tax, claim excess input tax credit or tax refund through fraud, wilful misstatement or suppression of fact.
GST Notification 7/2025-Central Tax dt. 23-January-2025
07/2025. The amendments include the introduction of a new rule for granting a temporary identification number (TIN) to individuals who are not liable for registration but need to make payments under the Act.
Types of GST in India
CGST (Central Goods and Services Tax) SGST (State Goods and Services. IGST (Integrated Goods and Services Tax) UTGST (Union Territory Goods and Services Tax)