While the system is enforcing this limit strictly, there is no clear or functional workflow available on the portal to opt out of the Optional Category.
As a result, taxpayers are caught in a compliance deadlock where GST Returns cannot be filed due to limit breach, and at the same time, exit from the category is not practically enabled.
As per the portal advisory, withdrawal from the Optional Category is permitted only after filing returns for a minimum period.
If the withdrawal application is made before 1 April 2026, returns for at least three months from the effective date of registration are required to be filed. If the application is made on or after 1 April 2026, returns for at least one tax period must be filed. However, when GSTR-1 summary generation itself is blocked due to breach of B2B limits, this condition becomes circular and unworkable, as the taxpayer is unable to complete the mandatory return filing required for withdrawal.
In the absence of any system-enabled exit mechanism or official procedural clarity, the only practical option currently available to taxpayers is to defer B2B outward supplies to the subsequent month so that the ₹2.5 lakh B2B tax liability threshold is not breached in the current tax period. This temporary workaround, though not commercially desirable, is presently the only way to allow GSTR-1 filing to proceed and avoid further compliance disruption until the portal provides a clear and operable process to switch out of the Optional Category.
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