Ledger Based Governance under GST

GST compliance is entering a new phase, compliance by code. Through the GSTN Advisory dated 29 December 2025, the GST portal has moved beyond merely informing or warning taxpayers of inconsistencies in ITC reversals, reclaims, and RCM credits, and has begun enforcing compliance through system design itself. Through system validations and ledger-based restrictions, ITC reversals and RCM credits are now being enforced at the filing stage itself. In this position paper by J the App by JustIDT , we unpack the structural, legal, and cash-flow implications of this quiet but consequential transformation.