diff --git a/net/ipv4/ip_gre.c b/net/ipv4/ip_gre.c
index 0901de42ed85..586a008b1642 100644
--- a/net/ipv4/ip_gre.c
+++ b/net/ipv4/ip_gre.c
@@ -778,8 +778,14 @@ static void ipgre_link_update(struct net_device *dev, bool set_mtu)
 		    tunnel->encap.type == TUNNEL_ENCAP_NONE) {
 			dev->features |= NETIF_F_GSO_SOFTWARE;
 			dev->hw_features |= NETIF_F_GSO_SOFTWARE;
+		} else {
+			dev->features &= ~NETIF_F_GSO_SOFTWARE;
+			dev->hw_features &= ~NETIF_F_GSO_SOFTWARE;
 		}
 		dev->features |= NETIF_F_LLTX;
+	} else {
+		dev->hw_features &= ~NETIF_F_GSO_SOFTWARE;
+		dev->features &= ~(NETIF_F_LLTX | NETIF_F_GSO_SOFTWARE);
 	}
 }