The Government of India, through the Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC), has introduced a GST Amnesty Scheme 2025. This scheme provides relief to taxpayers by waiving penalties and interest for certain past GST liabilities. The changes have been incorporated through Section 128A of the CGST Act, 2017, along with Rule 164 of the CGST Rules, 2017. The scheme applies to tax demands for the period from 1st July 2017 to 31st March 2020.
This article provides a detailed breakdown of the scheme, its eligibility criteria, benefits, procedural aspects, and clarifications issued by the CBIC through Circular No. 248/05/2025-GST and Notification No. 11/2025-Central Tax.
Circular No. 248/05/2025-GST
Notification No. 11/2025-Central Tax
Key Highlights of the GST Amnesty Scheme 2025
New Section 128A inserted into the CGST Act, 2017, allowing waiver of interest, penalty, or both for past tax demands.
Rule 164 added to the CGST Rules, 2017, to provide procedural guidance for availing benefits.
Applicable for tax demands raised under Section 73 of the CGST Act for the period 1st July 2017 to 31st March 2020.
Taxpayers need to make payments using FORM GST DRC-03 or other prescribed methods.
The scheme is effective from 1st November 2024.
Eligibility for Amnesty Benefits
As per Circular No. 248/05/2025-GST, the following categories of taxpayers can avail of the GST amnesty scheme:
Taxpayers who have already paid tax through FORM GSTR-3B
If the payment was made before 1st November 2024, it will be considered valid for amnesty.
However, payments made after this date must be through FORM GST DRC-03.
Taxpayers who have pending tax liabilities under Section 73
They must pay their due tax to avail of interest and penalty waiver.
Taxpayers who have filed appeals against consolidated adjudication orders
If an appeal covers periods both inside and outside the amnesty period, the taxpayer can withdraw only the portion related to the amnesty period (FY 2017-18 to 2019-20).
Procedural Requirements
The scheme specifies clear steps for taxpayers to follow in order to claim amnesty benefits:
A. Payment of Tax Liability
If the taxpayer already paid tax before 1st November 2024 via GSTR-3B, it will be considered valid.
If payment is made on or after 1st November 2024, it must be done using FORM GST DRC-03.
B. Withdrawal of Appeals
If a taxpayer has filed an appeal covering multiple financial years, they can partially withdraw the appeal for the period covered under Section 128A (FY 2017-18 to 2019-20).
The appellate authority will continue proceedings for the periods beyond the amnesty coverage.
Key Clarifications from CBIC
The CBIC issued Circular No. 248/05/2025-GST and Notification No. 11/2025-Central Tax to clarify various issues faced by taxpayers:
A. Treatment of Past Payments (FORM GSTR-3B)
Taxpayers who paid tax via FORM GSTR-3B before 1st November 2024 are eligible for amnesty.
Post 1st November 2024, payments must be made through FORM GST DRC-03.
B. Appeal Withdrawal Process
If an appeal covers both eligible (FY 2017-18 to 2019-20) and non-eligible periods, the taxpayer needs to:
Withdraw the appeal for the eligible period.
Continue the appeal for the non-eligible period.
C. No Refund for Taxes Already Paid
No refund will be granted for taxes, interest, or penalties already paid before the introduction of Rule 164.
If a demand notice covered both amnesty and non-amnesty periods, only the eligible period gets relief.
Changes Introduced in Rule 164 (via Notification No. 11/2025)
Modification in Rule 164(4):
Taxpayers must pay tax only for the period covered under Section 128A.
Partial appeal withdrawal is allowed.
Insertion of Explanation in Rule 164(4):
If a demand covers both eligible and non-eligible periods, the taxpayer will not receive a refund for taxes already paid.
Addition to Rule 164(7):
Instead of withdrawing a full appeal, taxpayers can notify the appellate authority that they wish to withdraw only for the amnesty period.
The Budget 2025 introduced major amendments to the Income Tax Act, 1961, aimed at simplifying India’s tax structure. These changes take effect from 1st April 2025 and will be applicable for FY 2025-26 (AY 2026-27).
1. Income Tax Slabs for FY 2025-26 (AY 2026-27)
The Budget 2025 introduced revised tax slabs under Section 115BAC (New Tax Regime) to enhance savings and boost spending capacity. These new slab rates apply to income earned in FY 2025-26 onwards.
Income Tax Slabs
Income Tax Rates
Up to ₹4 lakh
NIL
₹4 lakh – ₹8 lakh
5%
₹8 lakh – ₹12 lakh
10%
₹12 lakh – ₹16 lakh
15%
₹16 lakh – ₹20 lakh
20%
₹20 lakh – ₹24 lakh
25%
Above ₹24 lakh
30%
Note: Old Tax Regime (Optional) slab rates remain unchanged.
2. Increased Rebate Under Section 87A
The rebate under Section 87A has been increased to ₹60,000 from the previous limit of ₹25,000. This means taxpayers with income up to ₹12 lakh will have zero tax liability under the New Tax Regime.
3. Tax Deduction at Source (TDS) Changes
Effective April 2025, the TDS threshold limits for various sections have been increased as follows:
Section
Before 1st April 2025
From 1st April 2025
193 – Interest on securities
NIL
₹10,000
194A – Interest other than Interest on securities
(i) ₹50,000 for senior citizens (ii) ₹40,000 for others (banks, co-op societies, post offices) (iii) ₹5,000 in other cases
(i) ₹1,00,000 for senior citizens (ii) ₹50,000 for others (banks, co-op societies, post offices) (iii) ₹10,000 in other cases
194 – Dividend for individual shareholder
₹5,000
₹10,000
194K – Income from mutual fund units
₹5,000
₹10,000
194B & 194BB – Winnings from lottery, crossword, horse race
Aggregate exceeding ₹10,000 annually
₹10,000 per transaction
194D – Insurance commission
₹15,000
₹20,000
194G – Commission/prizes on lottery tickets
₹15,000
₹20,000
194H – Commission or brokerage
₹15,000
₹20,000
194I – Rent
₹2,40,000 annually
₹50,000 per month
194J – Professional/technical services fees
₹30,000
₹50,000
194LA – Compensation on land acquisition
₹2,50,000
₹5,00,000
194T – Remuneration/interest/commission to partners
NIL
₹20,000
The following changes in TDS Rates will apply from 1st April 2025:
S. No.
Section of the Act
Existing TDS/TCS Rate
Proposed TDS/TCS Rate
1.
Section 194LBC – Income in respect of investment in securitization trust
25% (if payee is an Individual or HUF) and 20% (otherwise)
10%
Note: Other TDS provisions remain unchanged.
4. Omission of TCS on Sale:
Existing Provision (Section 206C(1H))
TCS at 0.1% is collected on the sale of goods (except exports and certain specified goods). Applicable if the sale value exceeds ₹50 lakh in a financial year.
Issue with Existing Provision
TDS under Section 194Q also applies at 0.1% on the same transaction. Uncertainty for sellers, as they are often unaware if the buyer has deducted TDS, leading to double compliance(both TDS & TCS).
Key Change:
TCS on the sale of goods (Section 206C(1H)) is removed from 01.04.2025. TDS under Section 194Q will continue.
4. Benefits to Taxpayers
No double compliance (TCS & TDS confusion removed). Reduced compliance burden for sellers. Avoids unnecessary liquidity blockage.
5. Effective Date
From 01.04.2025, sellers are NOT required to collect TCS on the sale of goods.
5. Tax Collected At Source (TCS) Changes
The following TCS changes will be effective from April 2025:
Section
Before 1st April 2025
From 1st April 2025
206C(1G) – Remittance under LRS & Overseas Tour Packages
₹7 lakh
₹10 lakh
206C(1G) – Remittance for education through loans
₹7 lakh
NIL (No TCS)
Definition of “Forest Produce” Rationalized
Q1. What are the major provisions of Section 206C(1) (TCS on Sale of Specified Goods)? Section 206C(1) mandates TCS collection on the sale of specific goods like alcohol, timber, tendu leaves, and other forest produce.
Q2. What changes were made in Finance Bill 2025?
Three major amendments:
“Forest produce” has been formally defined.
Scope clarification: Now, only “forest produce under a forest lease” is liable for TCS.
TCS Rate Reduction:
TCS on timber and other forest produce (excluding tendu leaves) under a forest lease is reduced from 2.5% to 2%.
Q3. How has “forest produce” been defined? It follows the meaning provided under State Forest Acts or the Indian Forest Act, 1927.
Q4. What are the key changes in TCS applicability on forest produce? Earlier: TCS was applicable to all forest produce sales. Now: Only forest produce obtained under a forest lease is liable for TCS.
Q5. What is the new TCS rate for forest produce (excluding timber and tendu leaves) under a forest lease? The TCS rate is reduced from 2.5% to 2%.
Exemption from Prosecution for Delayed Payment of TCS (Section 276BB)
Q1. What is Section 276BB of the Income-tax Act, 1961? Section 276BB provides for prosecution in case of failure to pay the tax collected at source (TCS) to the credit of the Central Government.
Q2. What amendment has been made in Section 276BB in Finance Bill 2025? The amendment states that prosecution shall not be instituted if the person has paid TCS to the credit of the Central Government on or before the prescribed time for filing the TCS statement under proviso to Section 206C(3).
Q3. What happens if the person does not pay TCS even after the due date? The present provisions of Section 276BB shall continue to apply, meaning prosecution can be initiated.
Q4. How does this amendment benefit taxpayers? Taxpayers who miss the TCS payment deadline but pay before filing the TCS statement will now be exempt from prosecution, reducing litigation risks.
6. Removal of Higher TDS/TCS for Non-Filers of Income Tax Return
Q1. What are Sections 206AB and 206CCA of the Act? Section 206AB mandates higher TDS rates for non-filers of income tax returns. Section 206CCA mandates higher TCS rates for non-filers of income tax returns.
Q2. What changes were made in Finance Bill 2025? Both sections are proposed to be omitted from 01.04.2025 onwards.
Q3. How does this benefit taxpayers? Deductors and collectors no longer need to verify whether the deductee/collectee has filed an income tax return, reducing compliance burdens. However, higher TDS/TCS rates for invalid PAN or no-PAN cases will continue to apply.
Q4. From when will these sections be omitted? From 1st April 2025, these provisions will no longer be applicable.
7. Updated Tax Return (ITR-U) Deadline Extended
The deadline for filing an Updated Tax Return (ITR-U) has been extended from 12 months to 48 months (4 years). Additional tax liability depends on when the ITR-U is filed:
If ITR-U filed within
Additional Tax
12 months from relevant AY
25% of additional tax (tax + interest)
24 months from relevant AY
50% of additional tax (tax + interest)
36 months from relevant AY
60% of additional tax (tax + interest)
48 months from relevant AY
70% of additional tax (tax + interest)
8. Benefits for IFSC Units
Sunset date extended: IFSC units can now commence operations until 31st March 2030 to claim tax benefits.
Life insurance policies issued by IFSC offices to non-residents are fully exempt under Section 10(10D), with no limit on premium amount.
9. Tax Exemptions for Start-ups
Start-ups incorporated before 1st April 2030 can avail 100% tax exemption on profits for three consecutive years out of ten years under Section 80-IAC, subject to conditions.
10. Tax Deduction for NPS Vatsalya
1. What is NPS Vatsalya?
A pension scheme launched on 18.09.2024, allowing parents/guardians to maintain an NPS account for minor children.
2. Existing 80CCD Provisions
Deduction available for contributions to NPS by employees, employers, or any assessee.
Withdrawals are taxable, subject to certain conditions.
3. Key Amendments in Finance Bill 2025
Tax Deduction Extended: Parents/guardians can now claim deduction for contributions to NPS Vatsalya (for up to 2 minor children) under the old tax regime. Allowed under Section 80CCD(1B) with an overall cap of ₹50,000 (including self & children’s contributions). Partial withdrawal (up to 25%) is tax-exempt under Section 10(12BA). Final withdrawal is taxable if a deduction was claimed earlier.
4. Effective Date
Applicable from AY 2026-27 (PY 2025-26).
11. Tax Exemption for Withdrawals from National Savings Scheme (NSS):
1. Previous NSS Provisions
Section 80CCA allowed deduction for deposits in National Savings Scheme (NSS).
Withdrawals (with interest) were taxable if a deduction was claimed earlier.
No deduction was allowed under Section 80CCA since AY 1992-93.
No tax on withdrawals after the depositor’s demise.
2. Key Change in NSS (DEA Notification – 29.08.2024)
No interest will be credited to NSS accounts from 01.10.2024.
3. Benefits under Finance Bill 2025
Tax exemption granted on withdrawals made on or after 29.08.2024. Exemption applies only to deposits for which deduction under Section 80CCA was claimed earlier. Allows depositors to withdraw funds without tax liability.
4. Effective Date
Applicable for withdrawals made on or after 29.08.2024.
12. Deduction on Remuneration Paid to Partners
The maximum deduction available for partners’ remuneration will be:
Book Profit
Deduction Limit
First ₹6,00,000 of book profit or loss
₹3,00,000 or 90% of book profit, whichever is higher
Remaining book profit
60% of book profit
13. Clarity in Taxation of Income on Redemption of Unit Linked Insurance Policy (ULIP)
Q1. What are the provisions relating to amounts received under a life insurance policy?
Ans. Section 10(10D) provides income-tax exemption on the sum received under a life insurance policy, including any bonus, subject to certain conditions.
Q2. What conditions must be fulfilled to claim exemption under Section 10(10D)?
Ans. To claim the exemption, the following conditions must be met:
The annual premium for any year during the policy term should not exceed 10% of the actual sum assured (for policies issued on or after 01.04.2012).
For policies issued after 01.02.2021, the total premium must not exceed ₹2,50,000 (for ULIPs) or ₹5,00,000 (for other life insurance policies) to qualify for exemption.
Q3. What happens if the conditions under Section 10(10D) are not fulfilled?
Ans. If the above conditions are not met, then:
For ULIP policies, the amount received will be taxed as capital gains under Section 45(1B).
For other life insurance policies, the income will be taxed under “Income from Other Sources”.
Q4. What changes have been introduced through the Finance Bill 2025?
Ans.
Previously, even if the ULIP premium exceeded 10% of the sum assured, the redemption amount was not explicitly taxed under “Capital Gains.” This led to ambiguity regarding its tax treatment.
Finance Bill 2025 clarifies that any sum received from a non-exempt ULIP policy will be taxed as capital gains.
This ensures uniform tax treatment for all ULIP policies, eliminating any confusion.
Thus, if the exemption under Section 10(10D) does not apply, the income received will be taxed as:
Capital Gains (for ULIP policies)
Income from Other Sources (for non-ULIP life insurance policies)
14. Changes for Charitable Trusts & Institutions
1. Extended Registration Validity
Trusts with income below ₹5 crores now get 10-year registration validity instead of 5 years.
2. Flexibility for Incomplete Applications
Incomplete registration applications will no longer lead to automatic cancellation. Trusts can now rectify mistakes before rejection.
3. Changes in ‘Specified Persons’ Definition
Higher contribution threshold:
A person is considered a “specified person” if they contribute ₹1 lakh in a financial year (earlier ₹50,000) OR ₹10 lakh in total (earlier no such limit).
‘Relatives’ and ‘concerns’ of specified persons are excluded from the definition.
Founders, trustees, and managers remain fully covered under existing restrictions.
15.Obligation to Furnish Information on Crypto Assets
1. Definition of Crypto Asset
Crypto assets are defined under Section 2(47A) as part of the Virtual Digital Asset (VDA) definition in the Income Tax Act.
2. Key Amendments in Finance Act 2025
Reporting entities must furnish prescribed information on crypto transactions. Information must be reported within the prescribed time and manner to the Income Tax Authority.
3. Reporting Obligations
Who must report? A prescribed reporting entity under Section 285BAA (to be defined in Income Tax Rules).
What information? Details of crypto transactions (as specified in Income Tax Rules).
To whom? The Income Tax Authority (as prescribed).
4. Why is this Reporting Necessary?
India is among 52 jurisdictions adopting the Crypto-Asset Reporting Framework (CARF). CARF mandates Automatic Exchange of Tax-Relevant Information (AEOI) on crypto assets. The G20 Leaders’ New Delhi Declaration called for swift CARF implementation.
5. Implementation Date
Reporting entities must start providing information from the prescribed date (to be notified in rules).
16. Annual Value of Self-Occupied Property : Deemed Let out property
The taxation of self-occupied property has been simplified. Relaxation in conditions under Section 23(2) for determining annual value as nil.
Previous Conditions
The annual value of a self-occupied house was considered nil if: The owner resided in it. The owner could not reside due to business, profession, or employment reasons.
New Relaxations in Finance Act 2025
Now, the annual value will be nil if the property is self-occupied, regardless of the reason for not residing in it. No longer necessary to prove that the owner couldn’t reside due to work-related reasons.
4. How Many Properties Can Be Considered as Nil?
Up to two self-occupied properties, at the owner’s option, can have nil annual value (if no rent or benefit is derived).
5. Example Scenario
House 1 (Bangalore) – Mother resides.
House 2 (Mumbai) – Owner resides.
House 3 (Delhi) – Vacant.
The owner can choose two houses to be treated as self-occupied with nil annual value for tax purposes.
6. Effective Date
Applies fromPrevious Year 2024-25 (Assessment Year 2025-26 onwards).
Investing money wisely is crucial for financial security, and individuals choose from various options like mutual funds, stocks, real estate, gold, government schemes, and fixed deposits (FDs). While mutual funds and stocks offer higher returns, they come with market risks. Gold and real estate provide stability but require significant capital and have liquidity constraints. On the other hand, fixed deposits (FDs) remain a preferred investment choice for many due to their safety, assured returns, and ease of access. However, interest earned on FDs is subject to Tax Deducted at Source (TDS), which can reduce your returns
Fixed Deposit (FD) interest is subject to Tax Deducted at Source (TDS) if it exceeds a certain threshold. The Finance Act 2025 has introduced key changes in TDS rules, including increase in the TDS threshold for interest under Section 194A. These changes will be effective from April 1, 2025.
Important Change from 1st April 2025: Increase in TDS Threshold on FD Interest (Section 194A)
Current Rule (Before April 1, 2025):
TDS is deducted at 10% if interest on FD exceeds:
₹40,000 for regular individuals
₹50,000 for senior citizens
New Rule (Effective April 1, 2025):
The threshold for TDS deduction is increased to ₹50,000 for regular individuals.
For senior citizens, the Increased to ₹1,00,000.
This means fewer people will have TDS deducted on their FD interest.
2. How to Save TDS on FD Interest?
If your total income is below the taxable limit, you can submit Form 15G or Form 15H to your bank to avoid TDS deduction on FD interest.
You can download the form from your bank’s website or submit it online via net banking.
Submit the form at the beginning of the financial year to avoid unnecessary TDS deductions.
The form needs to be submitted every financial year.
(C) Example on How Form 15G/15H Helps
Case 1: Rohan (aged 45) earns ₹45,000 as FD interest but has no other taxable income.
Without Form 15G, the bank will deduct 10% TDS on ₹5,000 (₹45,000 – ₹40,000 threshold).
If he submits Form 15G, no TDS will be deducted.
Case 2: Meera (aged 65) earns ₹1,10,000 as FD interest, but her total taxable income is ₹3,80,000 (below ₹4 lakh).
Without Form 15H, the bank will deduct 10% TDS on ₹10,000 (₹1,10,000 – ₹1,00,000 threshold).
If she submits Form 15H, no TDS will be deducted.
Fixed deposits remain a reliable investment choice for those seeking safety and steady returns. However, TDS on FD interest can reduce your earnings, especially if your total income is below the taxable limit. With the Finance Act 2025increasing the TDS threshold under Section 194A from ₹40,000 to ₹50,000 for individuals (₹50,000 to ₹1,00,000 for senior citizens), fewer taxpayers will be affected by automatic TDS deductions. Additionally, submitting Form 15G (for individuals below 60) and Form 15H (for senior citizens) can help eligible investors avoid unnecessary tax deductions. By understanding these rules and using tax-saving strategies wisely, you can maximize your FD returns and improve your financial planning.
The Goods and Services Tax (GST) regime in India continues to evolve, with significant changes set to be implemented from 1st April 2025. These updates, announced by the GSTN, aim to improve compliance, security, and efficiency across various sectors. Below is a detailed breakdown of the major updates and their implications.
1. Updated E-Way Bill and E-Invoice Systems: Enhancements in Security
From 1st January 2025, the National Informatics Centre (NIC) will roll out updated versions of the E-Way Bill and E-Invoice systems. These updates are designed to enhance the security of these portals, in line with government guidelines and best practices.
The updates aim to prevent unauthorized access and ensure secure data transmission across all platforms.
Taxpayers and businesses using these systems are encouraged to stay updated with the latest security features and compliance measures, which can be accessed via the E-Invoice and E-Way Bill portals.
2. Multi-Factor Authentication (MFA): Mandatory from 1st April 2025
Starting 1st April 2025, the Multi-Factor Authentication (MFA) will become mandatory for all taxpayers, including those with an Annual Aggregate Turnover (AATO) above ₹5 Crores. MFA is already a requirement for businesses with AATO exceeding ₹100 Crores (since 20th August 2023) and ₹20 Crores (since 11th September 2023), and the threshold for other taxpayers will gradually reduce over time.
MFA Requirement Timeline:
From 1st January 2025, MFA becomes mandatory for taxpayers with AATO exceeding ₹20 Crores.
From 1st February 2025, it applies to businesses with AATO exceeding ₹5 Crores.
From 1st April 2025, it will be applicable to all taxpayers, regardless of their turnover.
Taxpayers are urged to enable MFA as soon as possible by updating their registered mobile numbers and following the instructions provided on the E-Way Bill and E-Invoice portals.
3. Restricting the Period of E-Way Bill Generation
Effective from 1st January 2025, the generation of E-Way Bills will be restricted to documents dated within 180 days from the date of the base document.
For example, any documents dated before 5th July 2024 will not be eligible for E-Way Bill generation from 1st January 2025.
This change aims to reduce the generation of E-Way Bills for stale or outdated transactions and ensure a more streamlined logistics process.
4. Restricting the Extension of E-Way Bills
From 1st January 2025, the extension period for E-Way Bills will be limited to 360 days from their original date of generation.
For instance, an E-Way Bill generated on 1st January 2025 can only be extended up to 25th December 2025.
This rule ensures that the validity of E-Way Bills is consistent and minimizes potential misuse of extensions.
5. Mandatory Sequential Filing of GSTR-7
Another major change coming from 1st April 2025 is the mandatory sequential filing of GSTR-7, which relates to tax deduction at source (TDS) under GST.
Taxpayers must now file GSTR-7 in a sequential manner to ensure accurate reporting and reconciliation of TDS.
This change will improve the efficiency of TDS collections and facilitate timely input tax credit (ITC) claims for taxpayers.
Changes in Forms of GSTR-7 & GSTR-8 are also coming
6. Enhancements in Biometric Functionality for Directors
Starting 1st March 2025, GSTN will introduce a new facility for Promoters/Directors of companies to complete biometric authentication at any GST Suvidha Kendra (GSK) within their Home State.
This facility is available to Directors/Promoters of businesses like Public Limited Companies, Private Limited Companies, Unlimited Companies, and Foreign Companies.
It will simplify the biometric authentication process for Promoters/Directors by allowing them to complete it at any available GSK in their home state, rather than the jurisdictional GSK.
7. Changes in GST Registration Process (Rule 8 of CGST Rules, 2017)
As per recent updates, applicants must follow the GST registration process as defined under Rule 8 of CGST Rules, 2017. Key changes include:
Non-Aadhaar Applicants:
If an applicant opts not to authenticate via Aadhaar, they must visit the GST Suvidha Kendra (GSK) for photo capturing and document verification.
Aadhaar Applicants:
Applicants opting for Aadhaar authentication must undergo biometric authentication and photo capturing at the GSK, followed by document verification for the Primary Authorized Signatory (PAS).
Non-Generation of ARN:
If the biometric authentication or document verification fails to be completed within 15 days, the Application Reference Number (ARN) will not be generated, and the registration process will be delayed.
8. Introduction of Input Service Distributor (ISD) System
From 1st April 2025, the Input Service Distributor (ISD) mechanism will be mandatory for businesses. This mechanism allows businesses to distribute Input Tax Credit (ITC) on common services (like rent, advertisement, or professional fees) across their GST registrations under the same PAN.
Key Compliances:
Issue ISD Invoices for ITC distribution.
File GSTR-6 monthly, with returns due by the 13th of each month.
The ITC distributed will be reflected in GSTR-2B of the receiving branches, which they will use to avail ITC during their GSTR-3B filing.
Consequences of Non-Compliance:
Denial of ITC for recipients not complying with the ISD framework.
Penalties ranging from ₹10,000 to the amount of ITC availed in contravention of the rules.
9. GST Rate Changes for the Hotel Industry (Effective 1 April 2025)
The GST rate for the hotel industry will undergo significant revisions starting 1st April 2025. Some of the key changes include:
Omission of “Declared Tariff”:
GST will now be based on the actual value charged to the customer, not the published tariff.
This change is aimed at creating a fairer tax structure for hotel operators.
GST Rate Based on Accommodation Value:
Hotels offering high-value accommodation (above ₹7,500 per unit/day) will fall under the category of “specified premises” and will have a GST rate of 18% for restaurant services with ITC.
New hotels can opt for this rate within 15 days of their GST registration acknowledgment.
10. GST on Sale of Old Cars
The GST rate on the sale of old cars will be revised to 18% from 12% starting 1st April 2025.
This change will impact the sale of pre-owned cars and may result in higher tax liabilities for businesses dealing in used cars.
11. Start New Invoice Series
As part of the GST system updates, businesses will be required to start a new invoice series from 1st April 2025. This will help in keeping accurate records and ensure the smooth transition into the new financial year with updated compliance requirements.
12. Calculation of Aggregate Turnover
Businesses should calculate their aggregate turnover to assess whether they are liable to take GST registration or issue e-invoices in the new financial year. This calculation will determine their compliance obligations for GST registration, QRMP Scheme, GST filing, and e-invoicing.
13. GST Waiver Scheme 2025:
File Application in SPL01 or SPL 02 if you already paid tax till 31st March 2025 within 3 months of payment
14. Credit note under GST:
If your supplier issued credit note then it is mandatory for recipient to accept or reject it through IMS
15 Last Date to claim ITC of Past FY:
Section 16(5): 5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed up to the thirtieth day of November, 2021.
The Central Board of Indirect Taxes and Customs, through Notification No. 22/2024–Central Tax, dated 8th October 2024, provides a special procedure for the rectification of orders related to the wrong availment of input tax credit under sections 73, 74, 107, or 108 of the Central Goods and Services Tax Act, 2017. This applies to registered persons where the input tax credit was denied due to contravention of section 16(4), but is now available under sections 16(5) or 16(6) of the Act. The concerned persons must file an application electronically on the common portal within six months from the date of the notification, by 8th April 2025.
TCS at 0.1% is collected on the sale of goods (except exports and certain specified goods).
TDS under Section 194Q also applies at 0.1% on the same transaction.
No double compliance (TCS & TDS confusion removed).
From 01.04.2025, sellers are NOT required to collect TCS on the sale of goods.
Section 206C(1) mandates TCS collection on the sale of specific goods like alcohol, timber, tendu leaves, and other forest produce.
The owner resided in it.
The owner could not reside due to business, profession, or employment reasons.
Up to two self-occupied properties, at the owner’s option, can have nil annual value (if no rent or benefit is derived).
The owner can choose two houses to be treated as self-occupied with nil annual value for tax purposes.
