GST Amnesty Scheme 2025: New Update – Avail Benefits Without Paying Tax

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:

1. 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.
2. Taxpayers who have pending tax liabilities under Section 73
   • They must pay their due tax to avail of interest and penalty waiver.
3. 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.

GSTN Advisory: Frequent Mistakes in SPL-01/SPL-02 and Their Solutions

The GST Network (GSTN) has issued a new advisory on March 21, 2025, highlighting technical issues and important deadlines related to the GST Waiver Scheme. Many taxpayers have reported difficulties in filing applications under SPL-01 and SPL-02. The GSTN team is working on resolving these problems at the earliest.

This article covers:
✅ Common Issues in Filing SPL-01/SPL-02
✅ Correct Deadline for Filing Waiver Applications
✅ Last Date for Payment under the Waiver Scheme
✅ Alternative Payment Methods & Next Steps

1. Common Issues in Filing SPL-01 and SPL-02 Applications

Taxpayers have raised multiple technical grievances while filing waiver applications under the scheme. The following key problems have been identified:

🔹 Order number not available in dropdown (SPL-02) – Taxpayers are unable to select the relevant order while filing SPL-02.

🔹 Order details not auto-populating – Even after selecting an order in SPL-02, the details are not appearing automatically.

🔹 Payment details missing in Table 4 of SPL-02 – Taxpayers are unable to see their payment details auto-filled in the form.

🔹 Unable to make payments using “Payment Towards Demand” – Even after filing SPL-02, taxpayers are unable to make the required payment for the demand order. Similarly, payments made through DRC-03 are not getting adjustedusing DRC-03A.

🔹 Withdrawal of Appeal (APL-01) not working – Taxpayers who filed an appeal (APL-01) before the First Appellate Authority are unable to withdraw their applications as required under the waiver scheme.

📌 Action by GSTN: These issues are being actively worked on, and taxpayers are advised to raise grievance tickets for resolution.

2. Correct Deadline for Filing GST Waiver Applications

There is a misconception among taxpayers that the last date for filing waiver applications is March 31, 2025. However, this is incorrect.

As per Rule 164(6) of the CGST Rules, 2017, taxpayers can file waiver applications (SPL-01/SPL-02) within three months from the notified date.

✅ Final Date to File Waiver Applications: June 30, 2025

🚨 What You Need to Do: If you are eligible under the waiver scheme, you have time until June 30, 2025, to file your SPL-01 or SPL-02 applications.

3. Last Date for Payment Under the Waiver Scheme

📢 Deadline for Making Payment: March 31, 2025

As per Notification 21/2024-CT dated October 8, 2024, the due date for making the tax payment to avail the waiver scheme benefits is March 31, 2025.

✅ Taxpayers should use the “Payment Towards Demand” functionality on the GST portal to complete the payment before the deadline.

🚨 Important: If payment is not made before March 31, 2025, you will lose the benefits of the waiver scheme.

4. Alternative Payment Methods If Facing Issues

If taxpayers face technical difficulties in making payments under the waiver scheme, they can follow these steps:

🔹 Step 1: Make a Voluntary Payment using Form DRC-03 under the category ‘Others’.

🔹 Step 2: After making the payment, submit Form DRC-03A to link the payment made in DRC-03 with the relevant demand order.

🔹 Step 3: Verify payment details in the Electronic Liability Ledger before proceeding with the waiver application.

📌 How to Check Payment in the Electronic Liability Ledger?
➡️ Login to the GST portal
➡️ Navigate to Services > Ledgers > Electronic Liability Register

5. Key Takeaways for Taxpayers

✔️ Make payment by March 31, 2025 – Use “Payment Towards Demand” or DRC-03 + DRC-03A if facing issues.

✔️ File waiver applications (SPL-01/SPL-02) by June 30, 2025 – Do not rely on the March 31, 2025, date for filing applications.

✔️ Check the GST portal for auto-populated payment details before proceeding with filing.

✔️ Raise grievance tickets for any unresolved issues to ensure timely resolution.

📢 Final Reminder: The GST Waiver Scheme offers relief to businesses and taxpayers facing demand orders. Ensure you complete your payments by March 31, 2025, and file applications by June 30, 2025, to avail of the benefits. 🚀

GST changes from 1 April 2025, Get Ready for the new era

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.

GST Amnesty Scheme (u/s 128A): Submit Your Application Before 31st March 2025

GST Amnesty Scheme for FY 2017-18, 2018-19 & 2019-20

The Goods and Services Tax (GST) Amnesty Scheme has been introduced to provide relief to taxpayers with pending tax liabilities and legal proceedings from the financial years 2017-18, 2018-19, and 2019-20. This scheme allows taxpayers to settle their tax dues with reduced penalties and interest, provided they comply with the stipulated conditions within the prescribed timelines. Below is a comprehensive guide to the GST Amnesty Scheme based on the procedural forms and stages outlined in the reference table.

1. Understanding the Amnesty Forms and Stages

The GST Amnesty Scheme involves multiple forms based on the stage of litigation or proceedings. These forms guide taxpayers on the actions required to avail of amnesty and settle their tax dues.

(A) Forms and Stages of Amnesty

SPL-01: Application for Amnesty When Show Cause Notice (SCN) Issued, Order Pending

• Taxpayers must submit SPL-01 along with DRC-03 and withdraw any pending writ orders within one month.
• Payment of Tax deadline: 31st March 2025
• Amnesty application to be filed within 3 months, i.e., by 30th June 2025.
• Relevant Section & Rule: Section 128A(1)(a), Rule 164(1)

SPL-02: Application for Amnesty When Order-in-Original (OIO) Issued, Appeal Not Filed

• Taxpayers must submit SPL-02 and ensure that tax payments are reflected in the Electronic Liability Ledger.
• Payment of Tax deadline: 31st March 2025
• Amnesty application to be filed within 3 months, i.e., by 30th June 2025.
• Relevant Section & Rule: Section 128A(1)(b), Rule 164(2)

SPL-02: Application for Amnesty When Order-in-Appeal (OIA) Issued

• If payments were made via DRC-03, taxpayers must file DRC-03A to offset the already paid amount.
• Payment deadline: 31st March 2025
• Amnesty application to be filed within 3 months, i.e., by 30th June 2025.
• Relevant Section & Rule: Section 128A(1)(c), Rule 164(2)

SPL-02: Application for Amnesty When OIA Converted from 74 to 73 by Higher Authorities (FAA/GSTAT/HC/SC)

• Taxpayers must file APL-1W (Appeal withdrawal order) within 1 month.
• Payment deadline: Within 6 months from the date of conversion order.
• Relevant Section & Rule: Proviso to Section 128A(1), Rule 164(2)

SPL-03: Notice When Application Under Section 128A Is Liable for Rejection

• Issued by the proper officer when the application does not meet the eligibility criteria.
• Show Cause Notice (SCN) to be issued within 3 months from the date of receipt of application.
• Relevant Rule: Rule 164(8)

SPL-04: Reply to Show Cause Notice (SCN)

• Taxpayers must reply to the SCN within 1 month from the date of issuance.
• Relevant Rule: Rule 164(9)

(B) Orders for Conclusion or Rejection of Proceedings

SPL-05: Order for Conclusion of Proceedings as Per Section 128A – Drop Order

• Taxpayers must pay interest and penalties for the “erroneous refund” portion and liabilities outside the scheme period within 3 months from the drop order.
• Relevant Rule: Rule 164(10) & (11)

SPL-07: Order for Rejection of Application Submitted Under Section 128A

• Taxpayers can file an appeal within 3+1 months under Section 107 or restore the original appeal.
• Order to be issued:
  • Within 3 months from the application receipt (if SCN not issued).
  • Within 3 months from reply to SCN (if issued and responded to).
  • Within 4 months if no response to SCN.
• Relevant Rule: Rule 164(12)

APL-01: Appeal Against Rejection Order

• Taxpayers can file an appeal if the application for amnesty is rejected.

SPL-06: Order for Conclusion of Proceedings as Per Section 128A – Drop Order by Appellate Authority

• Similar to SPL-05, but issued by the Appellate Authority.
• Relevant Rule: Rule 164(15)

SPL-08: Undertaking That No Appeal Will Be Filed Against “Amnesty Rejection Order” to Restore Original Appeal

• To be submitted within 3 months from the issuance of the rejection order by the appellate authority.
• Relevant Rule: Rule 164(15)(b)(ii)

Key Deadlines for Compliance

To ensure successful participation in the amnesty scheme, taxpayers must adhere to the following deadlines:

• 31st March 2025: Deadline for tax payments under the amnesty scheme.
• 30th June 2025: Last date to file applications for amnesty under various categories.
• Within 6 months: Appeal withdrawal and payment completion for converted cases.
• Within 3 months: Deadlines for orders related to conclusion, rejection, or SCN issuance.
• Within 4 months: Maximum timeline for order issuance if SCN reply is pending.

The GST Amnesty Scheme for FY 2017-18, 2018-19, and 2019-20 provides a crucial opportunity for taxpayers to clear pending liabilities with reduced penalties. Understanding the appropriate forms and timelines is essential for compliance and availing of the benefits under this scheme. Taxpayers are advised to act promptly and ensure all necessary payments and filings are completed before the stipulated deadlines to avoid legal complications.

For further clarification, it is advisable to consult a professional tax advisor or chartered accountant to navigate the amnesty process smoothly.

Yes Bank Rolls Out GST Payment Facility

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Finance Minister Sitharaman Announces Further GST Rate Cuts

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CGST Officials Uncover ₹1.95 Lakh Crore in GST Evasion (April–January): MoS Finance

Minister of State for Finance Pankaj Chaudhary

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GST Registration Made Easier: Directors Free to Pick Any GSK in Their State

Dear Taxpayers,

The Goods and Services Tax Network (GSTN) has introduced a significant enhancement in the Biometric Authentication process to simplify GST registration for new applicants. Previously, applicants selected for Biometric Authentication were required to visit a designated GST Suvidha Kendra (GSK) mapped to their jurisdiction. However, in a move to enhance flexibility, GSTN has now introduced an option for certain Promoters/Directors to complete their Biometric Authentication at any GSK in their Home State.

Background of Biometric Authentication for GST Registration

For applicants opting for Aadhaar Authentication, the system selects certain cases for Biometric Authentication based on system-driven risk analysis. Once selected, the applicant receives an intimation email with instructions and a slot booking link to schedule their authentication at a GSK.

Who Can Avail This Facility?

This new enhancement applies to Promoters/Directors listed in the Promoter/Partner tab for the following types of businesses:

• Public Limited Company
• Private Limited Company
• Unlimited Company
• Foreign Company

Such Promoters/Directors can now opt for Biometric Authentication at any available GSK in their Home State, as per the details provided in their REG-01 application.

Key Points to Note:

1. If a new GST registration application is selected for Biometric Authentication, an intimation email will be sent to the applicant. Eligible Promoters/Directors will have the option to select any GSK in their Home State from the link provided in the email.
2. To avail of this option, the Promoter/Director must follow the instructions in the email and select a GSK within their Home State.
3. The GSK selection is a one-time process and cannot be changed once confirmed. It is advised that applicants choose carefully.
4. This facility is currently available in 33 States/UTs where Biometric Authentication has been enabled. It will soon be extended to Uttar Pradesh, Assam, and Sikkim.
5. Promoters/Directors whose Home State is not Uttar Pradesh, Assam, or Sikkim can now opt for any GSK in their Home State for Biometric Authentication.
6. Once a Home-State GSK is selected, the Promoter/Director will receive an email confirmation, along with a new slot booking link.
7. Using the provided link, the Promoter/Director can book a slot at their convenience, based on availability at the chosen GSK.
8. The required photo capture and Biometric Authentication process will be completed at the selected GSK in the Home State.
9. If a Promoter/Director has already completed the Biometric Authentication process in the past, they will not be required to undergo the process again.
10. If the Promoter/Director and the Primary Authorized Signatory (PAS) are the same person, the Home-State GSK selection option will not be available. The PAS must visit the designated jurisdictional GSK for document verification and Biometric Authentication.
11. It is recommended that the Promoter/Director completes Biometric Authentication before the Primary Authorized Signatory (PAS) visits the GSK.
12. Opting for Biometric Authentication at a Home-State GSK is optional. If preferred, Promoters/Directors can still visit the designated jurisdictional GSK.

Conclusion

This enhancement in Biometric Authentication functionality is a major step toward streamlining the GST registration process and reducing travel burdens on Promoters/Directors. Taxpayers are requested to follow this advisory to ensure a smooth and hassle-free GST registration process.

For further details, stay updated with official GSTN notifications.

Financial and Tax Rules Effective as of March 1, New 2025

As we approach the new financial year 2025-26, several key regulatory and financial changes will come into effect from March 1, 2025. These updates will impact taxpayers, businesses, investors, and general consumers. The changes cover Income Tax, GST, e-Way Bill, SEBI Regulations, Banking etc.

Here is a detailed list of all the important changes, along with compliance deadlines to ensure a smooth transition into the new fiscal year.

1. E-Way Bill for Unregistered Persons

• Unregistered persons can now generate an e-Way Bill using Form ENR-03, available on the e-Way Bill portal.
• This change will help individuals and entities who are not registered under GST but are involved in goods movement.

2. Introduction of the New Income Tax Bill 2025

• The Income Tax Bill 2025 has been introduced and is currently under the process of approval.
• Once enacted, it will replace the Income Tax Act, 1961, bringing modernized tax provisions to simplify compliance and improve tax administration.

3. Finance Bill 2025 – Key Taxation Changes

The Finance Bill 2025 will soon be approved, becoming the Finance Act 2025, bringing several major tax changes:

• Higher Income Tax Exemption Limit – Taxpayers with an income of up to ₹12 lakh will now be exempt from income tax under the new tax regime (New Slab Rate)
• Changes in TDS & TCS Thresholds – Various TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) limits will be revised, affecting businesses involved in high-value transactions.
• No TCS on Sale from 1 April 2025
• Changes in Self-Occupied House Property Rules
• Rebate & Marginal Relief Changes
• New Deduction Under NPS ‘Vatsalya’ (Section 80CCD(1B)) – Additional tax benefits will be available for National Pension Scheme (NPS) investments.
• Revised Turnover & Investment Limits for MSMEs
• Increase in the Period for Filing Updated Income Tax Returns – Taxpayers can now file updated income tax returns for up to 48 months from the end of the assessment year, allowing more flexibility to correct past returns.

4. GST Updates Effective from March 1, 2025

• Negative Liability in GSTR-3B – Businesses can now report negative liability in GSTR-3B, improving GST return accuracy.
• HSN Code Selection & Validation in GSTR-1 & GSTR-1A –
  • Manual entry of HSN codes is replaced with a drop-down menu to reduce errors.
  • Table-12 is now bifurcated into B2B and B2C transactions, ensuring clearer reporting.
  • Initial validation warnings will be issued for incorrect values, but they will not block filing.

5. New GST Registration Process (Rule 8 of CGST Rules, 2017)

The GST registration process now includes stricter authentication measures:

• For applicants NOT opting for Aadhaar Authentication –
  • Must visit a GST Suvidha Kendra (GSK) for photo capturing and document verification.
• For Aadhaar Authentication (with Biometric Verification) –
  • Promoters/Partners must visit GSK for biometric authentication.
  • If already verified in another State/UT, only document verification is needed.
• Non-Generation of Application Reference Number (ARN) –
  • If verification is not completed within 15 days, the ARN will not be generated.

6. Important GST & Tax Compliance Deadlines Before March 31, 2025

• LUT (Letter of Undertaking) Renewal – Apply for Form GST RFD-11 before March 31, 2025, for tax-free exports.
• Composition Scheme Enrollment – File Form CMP-02 before March 31, 2025, to opt for the Composition Scheme.
• QRMP Scheme Selection – Opt-in or opt-out of Quarterly Return Filing before April 30, 2025.
• Declaration for GTA Taxpayers – File Annexure V & VI before March 31, 2025.
• GST Refund for FY 2022-23 – Claim pending GST refunds before March 31, 2025.
• Mandatory E-Invoicing from April 1, 2025 – If your turnover exceeds ₹5 crore, be ready to implement e-invoicing.
• GST Amnesty Scheme under Section 128A – To avail GST penalty relief, pay tax dues before March 31, 2025.

7. SEBI Nomination Rules Update

• SEBI mandates all trading & demat account holders to either nominate a beneficiary or opt out by March 31, 2025.
• Failure to comply will lead to account freezing, restricting trading and investment activities.

8. Fixed Deposit (FD) Interest Rate Adjustments

• Major banks have updated their FD interest rates starting March 1, 2025.
• Investors should review the new rates to align their savings with financial goals.

Income Tax and GST compliance deadlines for March 2025 in India:

As we approach March 2025, it’s crucial for businesses and individuals in India to stay informed about key tax compliance deadlines to ensure timely adherence and avoid penalties. Below is a comprehensive guide outlining the important due dates for Income Tax and Goods and Services Tax (GST) for the month of March 2025.

Income Tax Compliance:

March 7, 2025: Due date for deposit of TDS/TCS for February 2025. Government offices paying without a challan must deposit on the same day as deduction.

March 15, 2025:

• Fourth installment of advance tax for Assessment Year (AY) 2025-26.
• Full payment of advance tax for taxpayers under the presumptive taxation scheme (sections 44AD/44ADA) for AY 2025-26.
• Submission of Form 24G by government offices for TDS/TCS deductions in February 2025 without a challan.

March 17, 2025: Issuance of TDS certificates for tax deducted in January 2025 under sections 194-IA, 194-IB, and 194S.

March 30, 2025: Due date for furnishing challan-cum-statement for tax deducted in February 2025 under sections 194-IA, 194-IB, 194M, and 194S.

• Section 194-IA: TDS on the purchase of immovable property.
• Section 194-IB: TDS on rent by certain individuals and HUFs.
• Section 194M: TDS on payments to contractors and professionals by individuals/HUFs not liable to deduct TDS under other provisions.
• Section 194S: TDS on payment for the transfer of virtual digital assets by specified persons.

March 31, 2025:

• Filing of Country-By-Country Report (Form No. 3CEAD) for the previous year 2023-24 by the parent or alternate reporting entity resident in India.
• Submission of Form 67 to claim foreign tax credit for income earned in the previous year 2022-23, provided the original return was filed within the specified time.
• Filing of an updated return of income for AY 2022-23.

GST Compliance:

March 11, 2025: Filing of GSTR-1 for February 2025 by taxpayers with an annual turnover exceeding ₹1.5 crore or those who have opted for monthly filing.

March 13, 2025: Submission of Invoice Furnishing Facility (IFF) for February 2025 under the QRMP scheme.

March 20, 2025: Filing of GSTR-3B for February 2025 by taxpayers with an annual turnover of more than ₹5 crore.

March 25, 2025: Payment of tax for February 2025 under PMT-06 by taxpayers under the QRMP scheme.

March 31, 2025:

• Filing of Letter of Undertaking (LUT) for FY 2025-26 to export goods/services without payment of IGST.
• Opting in for the Composition Scheme for FY 2025-26 by filing CMP-02.
• File Annuexure V or VI in case of GTA opting in or out from Reverse charge/Forward charge
• Take decision to opt in or out from QRMP scheme.