Key GST Notifications and Updates – 2025

1. CGST Rate Notifications (Effective from January 16, 2025):

   • Notification No. 01/2025: Fortified Rice Kernel (FRK) under HSN 1904 now attracts a 5% GST rate (previously 18%), aimed at promoting nutrition and affordability.

   • Notification No. 02/2025: Gene Therapy is fully exempted from GST, added under exemption schedule entry S. No. 105A.

   • Notification No. 03/2025: Inputs used in food preparations for free distribution under the Integrated Child Development Services (ICDS) attract a conditional 5% GST rate, targeting economically weaker sections.

   • Notification No. 04/2025: GST on old and used vehicles increased from 12% to 18%, calculated on the supplier’s margin (difference between selling price and depreciated/purchase value).

   • Notification No. 05/2025: Redefines “specified premises” for hotel accommodation services, removing the “declared tariff” concept. Specified premises now include those with a supply value exceeding ₹7,500 per unit per day in the previous financial year.

   • Notification No. 07/2025: Amends Reverse Charge Mechanism (RCM) applicability:

     • Sponsorship services by non-body corporates now attract RCM; body corporate services are under forward charge.

     • Renting of immovable property (non-residential) by unregistered persons to registered persons (except composition levy taxpayers) falls under RCM.

2. Central Goods and Services Tax (Amendment) Rules, 2025:

   • Notification No. 07/2025 (January 23, 2025): Amends rules including Rule 8(4A), 138(3), 39(1), 39(1A), and forms like GSTR-7, GSTR-8, GST ENR-03, and GSTR-3B to streamline compliance and reporting.

   • Second Amendment Rules, 2025: Notified to enhance procedural efficiency, including clarifications on late fees for FORM GSTR-9C and appeal procedures under Section 128A.

3. GST Registration and Compliance Updates:

   • Biometric-Based Aadhaar Authentication: Extended to states like Uttar Pradesh, Tamil Nadu, and Himachal Pradesh for GST registration, requiring document verification and biometric checks for high-risk applicants.

   • Mandatory Multi-Factor Authentication (MFA): Effective April 1, 2025, for all taxpayers accessing the GST portal to enhance security.

   • E-Invoicing Threshold Reduction: From April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) above ₹10 crore must report B2B invoices to the Invoice Registration Portal (IRP) within 30 days.

   • Input Service Distributor (ISD) Registration: Mandatory from April 1, 2025, for businesses distributing Input Tax Credit (ITC) across branches, requiring GSTR-6 filings.

   • GST Registration Campaign 2025: The CGST Delhi East Commissionerate is promoting compliance among unregistered manufacturers and traders.

4. Filing and Waiver Schemes:

   • Waiver Scheme under Section 128A: Forms GST SPL-01 and SPL-02 for waiver of interest/penalty for delayed filings (2017-18 to 2022-23) are expected to be available by early January 2025. Taxpayers must pay demanded tax by March 31, 2025, to avail benefits.

   • GSTR-3B Filing Deadlines: For QRMP taxpayers, GSTR-3B for January-March 2025 is due by April 24, 2025 (Category X States/UTs) or April 26, 2025 (Category Y States/UTs).

   • Partial Waiver for GSTR-9C: Delayed filings for 2017-18 to 2022-23 can be completed by March 31, 2025, with partial waiver of penalties.

5. Other Procedural Updates:

   • GST Registration Processing: New instructions (Instruction No. 03/2025-GST, April 17, 2025) mandate that only documents listed in FORM GST REG-01 be accepted, with clear timelines for approvals (within 7 days) to reduce delays and officer overreach.

   • Online Appeals at GST Appellate Tribunals: Rules notified on April 25, 2025, mandate digital filing of appeals, effective immediately.

   • UPI and Card Payments: Yes Bank enabled for GST payments via UPI and debit/credit cards on the GST portal.

   • E-Way Bill for Gold: Kerala introduced E-way bill requirements for gold transactions.

Additional Notes

• 55th GST Council Recommendations:

  • Extended GST compensation deadline to June 30, 2025.

  • Reduced pre-deposit for appeals involving only penalties from 25% to 10%.

  • Introduced exemptions for motor vehicle accident fund contributions and IAEA inspection equipment.

  • Revised GST rates for hotel accommodation and restaurant services based on the previous year’s supply value, effective April 1, 2025.

• Union Budget 2025 Impact: Presented on February 1, 2025, by Finance Minister Nirmala Sitharaman, it introduced amendments to simplify compliance and promote growth, with further rate rationalization expected in the 56th GST Council meeting.

• Clarifications : The government clarified that claims of GST on UPI transactions above ₹2,000 are false and misleading.