In this insightful Arjuna-Krishna dialogue, the duo explores why the October 2025 GST return holds special significance for businesses. Krishna explains that October marks the last window to reconcile FY 2024-25 data including outward supplies, ITC reversals, and credit notes, before statutory deadlines close. Taxpayers must align their books with GSTR-1, GSTR-3B, and GSTR-2B, follow up with vendors for missing invoices, and correct any invoice misclassifications. With Section 16(4) and revised GSTR-9 provisions tightening timelines, October's return becomes the final opportunity to claim pending ITC and ensure accurate compliance. Krishna concludes by reminding taxpayers that timely reconciliation in October 2025 helps avoid future penalties, interest, and audit complications.
Arjuna (Fictional Character): Krishna, every month, taxpayers diligently file their GST returns, but I keep hearing that this October's 2025 return is especially important. What's the reason behind this?
Krishna (Fictional Character): Arjuna, you're right! October's 2025 GST return carries more significance. Several reconciliation tasks and specific compliance need to be completed before filing October's GST return, since the window for certain adjustments closes on after that month. This October, taxpayers should be particularly careful about reconciling their books with their returns, ensuring compliance with ITC reversals, Claim and Reclaim and meeting various other reporting requirements. Let's break down each key point so businesses can stay compliant and avoid penalties.
Arjuna (Fictional Character): Krishna, what are the points that taxpayers should keep in mind while filing October 2025's return?
Krishna (Fictional Character): The Following things should be kept in mind while filing October 2025's return:
1. Reconciliation of Outward Supplies: Taxpayers must ensure that their books match with the outward supplies disclosed in GSTR-1 and GSTR-3B for FY 2024-25. Any discrepancies in it need to be adjusted in October's 2025 return by either adding missing invoices or reducing over already reported values.
2. ITC Reversal: Recipients are required to recalculate the reversal of ITC annually as per the CGST rules (on capital goods, inputs & input services) which was used for making taxable supplies and exempt supplies or used for both business, non- business purpose and any Short/Excess reversal for the period of 2024-25 identified shall be reversed/claimed upto the return filing for the month of October 2025.
3. Issuance of Credit Notes: Credit notes for overcharged tax or for excess taxable value on invoices of FY 2024-25 can only be issued and reported until October 2025's GSTR 3B return.
4. Reconciliation of Books with GSTR-2B: Rule 36(4) of the GST Act mandates the businesses to reconcile their ITC claims with GSTR-2B on an invoice-by-invoice basis, ensuring claims aligned with suppliers' reported details. This helps them to validate the ITC and reduces mismatches during audits. Following this reconciliation, any ITC remaining can be claimed or reversed in October 2025's return. According to Section 16(4), ITC on invoices or debit notes of FY 2024-25 must be claimed by 30th November 2025, making the October 2025 return the final chance for adjustments.
For Example, your supplier filed a GSTR-1 return showing ₹2,500 as tax for your invoice so it is reflected in your GSTR-2B also, but you claimed only ₹2,000 in GSTR-3B in FY 2024-25. October 2025 GSTR-3B return is your last chance to claim the balance ITC of ₹500 (if filed before 30th November 2025).
5. Follow up with Vendor: If any invoice pertaining to FY 2024-25 has not been reported by the supplier in any return of FY 24-25 and in 25-26 till September 2025 return then request them to upload it in GSTR-1 and pay the same in GSTR-3B of October 2025 so it will be reflected in our GSTR-2B, as the October 2025 GSTR-3B is the last chance to claim the ITC of 24-25. Therefore, recipients should follow up with their suppliers to ensure the remaining invoices of FY 24-25 are uploaded in the supplier's GSTR-1 for October 2025. Once the supplier files the invoice, the recipient can claim the ITC in their GSTR-3B for October 2025 or else it becomes ineligible to claim.
6. Amendment of Invoice Classification: If you had mistakenly classified a B2B invoice as B2C or vice versa then October's return is the last chance to make this correction for invoices related to FY 2024-25, as correcting them ensures proper credit flow and reporting accuracy.
7. Change in GSTR-9 of FY 24-25: The Form GSTR-9 for FY 2024-25 has been revised. Now, ITC related to FY 2024-25 that appears in the GSTR-2B of FY 2025-26 will also be included in Table 8A of GSTR-9 for FY 2024-25. Therefore, make sure that whether any such ITC appearing in the next year's GSTR-2B (from April to October 2025) is claimed in any GSTR-3B return from April to October 2025. If this ITC has not yet been claimed, you should claim it in your October 2025 GSTR-3B. This will help ensure that the ITC figures are properly reconciled between GSTR-2B, GSTR-3B, and GSTR-9.
Arjuna (Fictional Character): Krishna, all of these points sound critical. What should taxpayers learn from these guidelines?
Krishna (Fictional Character): Arjuna, these provisions emphasize the importance of reviewing and correcting all aspects of GST filings. Although there's no option to revise returns once filed, the GST law gives taxpayers ample time to make necessary adjustments before the final deadlines. By carefully reconciling their books, verifying their ITC, and correcting any classification or reporting errors in October 2025, businesses can avoid interest, penalties, and added compliance burdens.
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