Top 10 Major GST Amendments Effective from April 1, 2025: Key Compliance and Rate Changes
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| Top-10-Major-GST-Amendments-Effective-from-April-1-2025-Key-Compliance-and-Rate-Changes |
A raft of ten pivotal GST amendments take effect on April 1, 2025, introducing mandatory multi‑factor authentication (MFA), tighter e‑way‑bill rules, sequential TDS‑return filing, biometric KYC for directors, a compulsory ISD mechanism, revised rates for hotels and used cars, new invoice‑series requirements, a GST waiver scheme, real‑time credit‑note matching and revamped registration processes. These changes—backed by notifications under the CGST Act and CBIC advisories—aim to strengthen security, improve compliance, streamline credit flows and simplify procedural hurdles for taxpayers.
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1. Mandatory Multi‑Factor Authentication (MFA) for All Taxpayers
Implementation Timeline
- January 1, 2025: MFA mandatory for taxpayers with Annual Aggregate Turnover (AATO) > ₹20 Cr
- February 1, 2025: Extended to (Annual Aggregate Turnover) AATO > ₹5 Cr
- Effective from April 1, 2025: Applicable to all taxpayers, irrespective of turnover.
2. Sequential Filing of GSTR‑7 (TDS Returns)
Tax deductors must file GSTR‑7 returns in strict chronological order,
without skipping any period, to bolster TDS reconciliation and ITC accuracy.
Introduced via Notification 17/2024‑CT (Rule 66), effective
November 1, 2024 .
3.Way Bill Generation and Extension Restrictions
- Generation: Only invoices dated within the preceding 180 days may be used to generate e‑way bills from April 1, 2025. If the bill is before October 03, 2024, it is not ineligible.
- Extension: Capped at 360 days from original issue; an e‑way bill created on April 1, 2025, may be extended only until March 27, 2026 .
4.Biometric Authentication for Company Directors
GSTN Advisory No. 587 (March 3, 2025) allows promoters and
directors of certain entities (e.g., public/private/unlimited/foreign
companies) to complete biometric Aadhaar authentication at any GST
Suvidha Kendra (GSK) in their home state, rather than a jurisdiction‑mapped
center.
5.Mandatory Input Service Distributor (ISD) Registration
From April 1, 2025, any business with multiple GST
registrations under one PAN must adopt the ISD mechanism (issuing
ISD invoices and filing GSTR‑6) to distribute common ITC (e.g., rent, audit
fees) across units. Non‑compliance risks penalty and ITC denial.
6.GST Rate for Adjustments, Hotels and Used Cars
- Hotels: “Declared Tariff” abolished; GST now levied on the actual room charge. “Specified premises” charging > ₹7,500/per night attract 18 % GST on restaurant services with full ITC availing.
- Used Cars: GST on pre‑owned vehicles rises from 12 % to 18 %, increasing tax liabilities for dealers and purchasers.
7.New Invoice Series and Turnover Calculation
All taxpayers must start a fresh, sequential invoice‑number series
for FY 2025‑26 (separate series for invoices, debit notes, credit notes,
etc.) and recalculate aggregate turnover to determine registration, e‑invoicing
and QRMP eligibility.
8.GST Waiver Scheme 2025 (Forms SPL‑01 & SPL‑02)
Taxpayers who fully pay outstanding tax by
March 31, 2025, can apply for partial waiver of interest and
penalties (Section 128A) via SPL‑01/SPL‑02 on the GST portal by June 30, 2025
.
9. Enhanced Credit Note Compliance via IMS
Recipients must accept or reject supplier-issued credit notes
through the Invoice Management System (IMS) within two months, syncing
ITC claims and reducing mismatches. Late acceptance incurs interest for the
delay.
10. The GST registration system (Rule 8, CGST Rules) has been changed.
Rule 8 has been amended (Notification 09/2025‑CT) to mandate biometric-based
Aadhaar authentication and on‑site KYC at a GSK for Aadhaar‑authenticated
and non‑Aadhaar applicants alike. Verification (KYC) photo and paper check must be processed against the ARN issuance within 15 days of ARN issuance to avoid
registration delay.