1. 2025 GST Updates

14 May 2025

In GST, withdrawal applications of (APL 01W) filed before final acknowledgement (APL 02) are automatically approved, changing the appeal status to “Appeal withdrawn.” 

If filed after, approval from the Appellate authority is needed.Once approved by the Appellate authority, the appeal status changes from “Appeal submitted” to “Appeal withdrawn.”

Under Section 128A, appeals must not remain pending. Taxpayers must upload a screenshot showing “Appeal withdrawn” when filing waiver applications.

21st March 2025

There were issues noticed in filing applications SPL 01/SPL 02 on the GST portal such as order number not found, order/payment details discrepancies. GSTN issued an advisory to clarify taxpayers. If the payment details are not auto-populated in Table 4 of SPL 02, it is advised to verify the same in electronic liability ledger on the portal. Thereafter the taxpayer can file the waiver application. Taxpayers are advised to make the payment on or before 31st March 2025 and file the waiver application on or before 30th June 2025. 

16th March 2025
Biometric-based Aadhaar Authentication is now rolled out in Uttar Pradesh since 15th March 2025. The advisory was issued on 16th March 2025 by the GSTN.

8th March 2025

FM Nirmala Sitharaman has indicated that there will soon be a GST rate cut and that the tax review is in final stages, at the recently held Economics Times Awards for Corporate Excellence in Mumbai. With this update, we can expect the upcoming 56th GST Council meeting to have GST rate rationalisation on its agenda.

1st February 2025
Budget 2025

1. Amendments in Section 34 of the CGST Act, 2017: The Finance Minister amended the Proviso to sub-section (2) to explicitly provide for the requirement of reversal of corresponding input tax credit in respect of a credit-note. It means if the supplier issues a credit note for reducing their tax liability, the recipient must reverse the corresponding ITC, if already availed. Now businesses should enhance systems/processes to monitor credit note-related ITC reversals efficiently.
2. Amendments in Section 38 of the CGST Act, 2017: Section 38(1) is being amended to omit the expression “autogenerated” indicating that the ITC statement i.e. GSTR-2B may no longer be entirely system-generated. Businesses now might need to validate and reconcile invoices and ITC through Invoice Management System (IMS) rather than relying solely on system-generated data. Also, a new clause (c) to sec 38(2) is added, allowing the government to specify additional details in the ITC statement through rules.
3. Amendments in Section 107 and 112 of the CGST Act, 2017: 
   1. Section 107(6) is being amended to provide for 10% mandatory pre-deposit of penalty amount for appeals before Appellate Authority in cases involving only demand of penalty without any demand for tax.
   2. Section 112(8) is amended to provide for 10% mandatory pre-deposit of penalty amount for appeals before Appellate Tribunal in cases involving only demand of penalty without any demand for tax.

1. Insertion of a new section 122B of the CGST Act, 2017: A new Section 122B is being inserted to provide penalties for contraventions of provisions related to the Track and Trace Mechanism provided under section 148A.
    

10th January 2025

The due dates of monthly and quarterly GSTR-1, GSTR-3B, GSTR-5, GSTR-6, GSTR-7 and GSTR-8 returns are extended for the month/quarter ending 31st December 2024 as follows-

• GSTR-7 & GSTR-8: File by 12th Jan 2025
• GSTR-1 (Monthly): File by 13th Jan 2025
• GSTR-5 & GSTR-6: File by 15th Jan 2025
• GSTR-1 (QRMP): File by 15th Jan 2025
• GSTR-3B (Monthly): File by 22nd Jan 2025
• GSTR-3B (QRMP): File by 
        24th Jan 2025 for Category X States/UT  or 
        26th Jan 2025 for Category Y States/UT

Category X: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union Territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep.

Category Y:  Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, the Union Territories of Jammu and Kashmir, Ladakh, Chandigarh and New Delhi.