GST Updates January 2025

Extension of E-way Bill Expired on 31-12-2024.

Due to technical glitch encountered in the e-way bill generation has been resolved now on the portal and working smoothly. The Following measures have been put in place for technical issues faced earlier.

1. Extension of Expired E-Way Bills:

(a) As per the existing procedure, e-way bills that expired at midnight on 31st December 2024, could be extended either within 8 hours prior to the expiry or 8 hours after the expiry.

(b) Due to the technical glitch, this process was disrupted. To mitigate the impact, the window period for extending the e-way bills expiring on 31st December,2024, has been extended up to 1st January, 2025, midnight. Taxpayers and transporters are advised to utilize the “Extend EWB” facility on the portal to extend these e-way bills, if required.

2. Generation of E-Way Bills for Goods Moved During the Glitch: Payers and transporters who moved goods on 31st December 2024 without generating e-way   bills due to the technical issues are hereby advised to generate the necessary e-way bills on 1st January 2025 using the existing facility on the portal. For any assistance, taxpayers may contact the helpline or visit the portal support page.

Download – GST Advisory on E-way Bill Extension

Steps to file Application for rectification of Orders

The CBIC has issued Steps to file Application for rectification of Orders under section 73 & 74. Earlier Notification No 22/2024 dated 08-10-2024 issued for correcting past GST Demand orders related to wrongly claimed Input tax credit. This Notification was issued for the cases where the ITC was previously claimed incorrectly due to not following section 16(4) of CGST Act but is now allowed u/s 16(5) and 16(6) of the CGST Act,2017.

Brief of section 16(5): Section 16(5) of CGST Act pertains to claim the ITC on the invoice and debit notes for the FY 2017-18, 2018-19,2019-20, 2020-21 up to 30-11-2021.

Brief of Section 16(6): Section 16(6) of CGST Act pertains to claim ITC of the invoices and debit notes issued between cancellation and revocation of cancellation of registration in prescribed manner. The Taxpayer have 6 months from the date of Notification is issued to submit an application electronically through the GST Portal. This application will request the correction of an earlier order that confirmed the wrong availment of ITC.

Now the correction window for rectification of past orders issued under section 73 & 74 is available on the GST Portal.

Key Steps:

• Login to the GST Portal
• Navigate to the rectification option: Go to Services–>User Services–>My Application. Select Application for rectification order in the Application Type field. Click New Application to start the process.
• A Hyperlink is available on the portal to download the Annexure-A in word format. Fill the details of demand order related to ITC that was wrongly availed earlier due to restriction under section 16(4) of the CGST Act. It includes showing that the ITC is now eligible as per section 16(5) and/or section 16(6).
• Upload the complete Annexure A along with the application while filing for rectification.

For more details procedure click on https://tutorial.gst.gov.in/downloads/news/step_by_step_process_filing_rectification_application.pdf

Downlaod – GST Advisory for Rectification order

Biometric Aadhar authentication in Rajasthan

• GST Advisory has been issued for Biometric Aadhaar authentication and document verification for GST registration applicants of Rajasthan.
• This functionality of Biometric Aadhaar authentication has been developed by GSTN. It rolled out in Rajasthan on 07-01-2025.

Download – Biometric aadhar in Rajasthan

Introduction of Phase III for Table 12 of GSTR-1 & GSTR-1A

GST Advisory has been issued for Introduction of Phase III for Table 12 of GSTR-1 & GSTR-1A. This Advisory has main 4 Points which is required to be noted.

1. on successful implementation of Phase -I and Phase II regarding Table 12 of GSTR-1 & GSTR-1, now Phase III is being implemented from return period January-2025.
2. This Phase mainly consists of Three parts: firstly, the manual HSN entry has been replaced by choosing the correct HSN from giving Drop down. Secondly, Table 12 of GSTR-1 and 1A has been bifurcated into two tabs namely B2B and B2C. Third Validation for the value of supplies and tax amount involved in the same has also been introduced. In the initial phase, it is in warning mode only, which means failing in the validation rule will not Blocker for filing return of GSTR-1 & 1A.

Download – Phase III in Table 12 of GSTR-1 & 1A

Extension of Due dates of Various GST Returns

CBIC has issued notifications & Advisory to extend the due dates for various GST returns for December 2024.

Download – Notification No 01/2025-CT

Download – Notification No 02/2025-CT

Download – Notification No 03/2025-CT

Download – Notification No 04/2025-CT

Download – Notification No 05/2025-CT

Download – Notification No 06/2025-CT

Guidelines for Arrests and Bail

The recent judgment by the Delhi High Court in the case of Kshitij Ghildiyal vs. Director General of GST Intelligence, Delhi (dated 16.12.2024) has clarified that when someone is arrested, the authorities must give the arrested person the “grounds of arrest” in writing.

Key Points Explained:

1. Difference between “Reasons for Arrest” and “Grounds of Arrest”:Reasons for Arrest are general and apply to anyone being arrested. These include preventing further crimes, ensuring proper investigation, stopping evidence tampering, or preventing threats to witnesses.

Grounds of Arrest are specific and personal to the person being arrested. They must explain exactly why that person is being arrested, based on the evidence the investigating officer has. This allows the arrested person to defend themselves and apply for bail if needed.

2. Supreme Court Rulings Referenced: The High Court based its decision on two earlier Supreme Court judgments:

• Pankaj Bansal vs. Union of India (October 2023)
• Prabir Purkayastha vs. State (NCT of Delhi) (May 2024)

Both cases highlighted the need to clearly explain the specific reasons for arrest in writing.

3. Change in GST Investigation Instructions:

Because of this ruling, the GST Department has updated Instruction No. 02/2022-23 (dated 17.08.2022). Now, it is mandatory  for officers to:

• Explain the grounds of arrest to the person.
• Give a written copy of these grounds as an attachment to the Arrest Memo.
• Take a signed acknowledgment from the arrested person confirming they received the written grounds.

Download – Instruction No 01/2025

Generation of GSTR-2B for the Month of December 2024

As due date of GSTR-1 and GSTR-3B Monthly and Quarterly for the month of December 2024 is extended with reference to Notification No 01/2025 and 02/2025 dated 10-01-2025, Hence the GSTR-2B for the month of December will now be generated on 16-01-2025 as per rule 60 of CGST Rules 2017. Recomputation of GSTR-2B is required if any action is taken in the IMS after generation of GSTR-2B.

Downlaod – GSTR-2B of December 2024

Form SPL 01 and SPL 02 is now available on GST Portal

CBIC has issued GST Advisory to inform that Forms SPL 01 and SPL 02 is now available on GST Portal. This advisory is in reference to the earlier advisory issued on 29-12-2024.  

For waiver of Interest and penalty under section 128A, Forms SPL 01 and SPL 02 are avaialble on the Portal, hence taxpayer are advised to file the application under waiver scheme.One of the eligible conditions.

For filing application under waiver scheme is to withdraw the appeal applications filed against the demand order/notice/statement for which waiver application is to be submitted. In this regard, it is to inform that for the appeal applications (APL 01) filed before First Appellate authority, withdrawal option is already available in the GST portal.

However, for the appeal applications (APL 01) filed before 21.03.2023, withdrawal option is not available in GST portal. For such cases, the taxpayers are advised to submit their request for withdrawal of appeal applications to the concerned Appellate Authority. The Appellate authority will forward such requests to GSTN through State Nodal officer for withdrawal of such appeal applications (i.e. filed before 21.03.2023 and not disposed off) from backend.

Download – GST Advisory on Section 128A -Forms SPL 01 & SPL02 available

GST Rate of Fortified rice reduced to 5% & Amendment in the Definition of Pre-Packaged and labelled

The Government has issued Notification No 01/2025-CTR dated 16-01-2025. This Notification are effective immediately from the date this notification was issued. It means it is effective from 16-01-2025.

On the Recommendation of 55th GST Council, the Government has decided to amend Notification No 01/2017 -Central Tax (Rate) with the following Changes.

1. Reduce GST Rate of the Fortified Rice Kernel to 5%.

2. To amend the Definition of Pre-packaged and Labelled with the following (After Schedule VII, in the explanation for clause (ii) and the proviso appended to it, the following clause shall be substituted):

The expression ‘pre-packaged and labelled ’ means all commodities that are intended for retail sale and containing not more than 25 kg or 25 litre, which are ‘pre-packed’ as defined in clause (l) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder.”

Download – Notification No 01/2025-CTR

Gene Therapy is exempt from GST from 16-01-2025.

On the Recommendation of 55th GST Council, the Government has decided to amend the Notification No 02/2017 -Central Tax (Rate) with the following Changes.

Granting Exemption on Gene Therapy.

To amend the Definition of Pre-packaged and Labelled with the following (in the explanation for clause (ii) and the proviso appended to it, the following clause shall be substituted) :

The expression ‘pre-packaged and labelled ’ means all commodities that are intended for retail sale and containing not more than 25 kg or 25 litre, which are ‘pre-packed’ as defined in clause (l) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder.” This Notification are effective immediately from the date this notification was issued. it means it is effective from 16-01-2025.

Download – Notification No 02/2025-CTR

Any input used for free distribution to the economically weaker sections is also taxed at 2.5%

The Government has issued Notification No 03/2025-CTR with reference to Notification no 39/2017-CTR dated 18-10-2017. Notification No 39/2017-CTR is related to 2.5 % rate applicable on Intra state supply of the following Goods:

• Food products which are packed in individual containers and are meant to be freely distributed to economically weaker sections of society under the program which is approved by Central Government and State Government.
• Fortified Rice Kernel premix specifically for programs like ICDS or any other similar government approved scheme.

Now the government has added the clause (c) food inputs for (a) above. It means 2.5% will be applicable on the purchase which is meant for providing freely to economically weaker sections of society under the program approved by the central Government and state Government. This Notification is effective immediately from the date this notification was issued. it means it is effective from 16-01-2025

Download – Notification No 03/2025-CTR

GST Rate of 18% applicable on the margin of old and used vehicles selling.

The Government has issued Notification No 02/2025-CTR dated 16-01-2025 for Increasing rate on Margin for sale of old and used vehicle including EVs except for the vehicles that are already taxed @ 18%.

Earlier GST rate of 18% on margin for following sale of old and used vehicles

What is Margin Value?

• Margin= Selling Price – Purchase Price (for non-depreciated assets)
• Margin= Selling Price – Depreciated value (If depreciation has been claimed under income tax)
• On this Margin GST is applicable in case of sale of old and used vehicles.

In short. the category of vehicles other than above were taxed at the rate of 6% which is now changed to 9%. it means on the margin value for selling of all the mentioned above old and used vehicles or any other old and used vehicles are taxed at the rate of 9% from 16-01-2025.

Download – Notification No 04/2025-CTR

Amendment in Definition of Specified Premises

Notification No 05/2025-CTR issued to make the amendment in the Definition of Specified Premises. By virtue of this notification, the term Declared Tariff will no longer be used as this word has been omitted from 01-04-2025 from the Notification No 11/2017 -Central tax (Rate) -dated 28-06-2017.

The government has omitted Clause (xxxv) in Explanation of Notification No 11/2017-Central tax (Rate). The clause was for Declared Tariff. Now , GST will be linked to actual price a customer pays for hotel rooms. Hence from 01-04-2025, the term declared tariff will not be in used only the actual price of hotel rooms will be relevant for payment of GST.

In 55th GST Council, the government has proposed to amend the definition of Specified premise. By this notification the government has substituted clause (xxxvi) which is related to Specified Premises.

The New definition of Specified Premises are as under:

“Specified premises”, for a financial year, means,-

• a premises from where the supplier has provided in the preceding financial year, ‘hotel accommodation’ service having the value of supply of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent; or
• a premises for which a registered person supplying ‘hotel accommodation’ service has filed a declaration, on or after the 1st of January and not later than 31st of March of the preceding financial year, declaring the said premises to be a specified premises; or
• a premises for which a person applying for registration has filed a declaration, within fifteen days of obtaining acknowledgement for the registration application, declaring the said premises to be a specified premises;”

The declarations form for Opt-in and Opt-out purpose are also available through this notification.

Download – Notification No 05/2025-CTR

Certain changes in exemption notification no 12/2017-CTR

CBIC Notification No 06/2025-CTR dated 16-01-2025 based on the recommendations of the 55th GST Council Meeting has amend the Notification No 12/2024-CTR dated 28-06-2017.

The changes are as under:

1. The word Transmission and distribution used in serial no 25A are replaced with word Transmission or distribution. it means the supply of service such as providing metering equipment on rent , Testing of meters , transformers or capacitors, releasing electricity connections , shifting of meters or service lines and issuing duplicate bills are services directly linked to the main activity of transmission or distribution of electricity. These services are provided by electricity transmission or distribution companies to their customers as necessary or supporting services to ensure proper delivery of electricity.
2. New entry no 36B has been inserted which are as under:
   

   Serial No	Heading	Description	Rate	Condition
   36B	Heading No 9971 or Heading 9991	Services of insurance provided by the Motor Vehicle Accident Fund, constituted under section 164B of the Motor vehicle Act,1988 (59 of 1988), against contributions made by insurers out of the premiums collected for third party insurance of motor vehicles.	Nil	Nil

3. The Government has exempted any service provide by training partner approved by National Skill Development Corporation by inserting clause (f) in Notification No 12/2017-CTR dated 28-06-2017.
4. The word Declared Tariff has been omitted with effect from 01-04-2025.
5. new clause (zja) has been inserted for insurer meaning. it is like insurer has the same meaning as assigned to it in sub section 9 of section 2 of insurance Act,1938 (4 of 1938).

Download – Notification No 06/2025-CTR

Sponsorship service provided by body corporate are now covered under Forward charge mechanism.

The Central Government has issued Notification No 07/2025-CTR to amend the Notification No 13/2017-CTR dated 28-06-2017 related to transactions on which RCM will be applicable.

The Changes are as under:

1. Sponsorship services provided by body corporate now covered under forward charge mechanism, it replaced the earlier applicability of reverse charge mechanism on such transaction. In Simple words.

2. Renting or leasing of immovable property by unregistered person to composite dealer is now Covered under Forward charge mechanism and out of the scope of RCM.

Both the changes are applicable from 16-01-2025.

Download- Notification No 07/2025-CTR

Changed Specified Premises definition referenced in electronic Commerce Operator notification.

The CBIC has issued Notification No 08/2025-CTR to amend the Notification no 17/2017-CTR dated 28-06-2017. The Notification No 17/2017-CTR stands for the intra state supplies on which the tax is borne by electronic commerce operators.

As the Government has amended the definition of Specified Premises, the reference to specified premises in various notifications are subject to change accordingly. In the Notification no 17/2017 under the  explanation in (c) the following words have been substituted:

“Specified premises” has the same meaning as assigned to it in clause (xxxvi) of paragraph 5 of notification No. 08/2017-Integrated Tax (Rate) dated 28.06.2017.”

Download – Notification No 08/2025-CTR

Enhancement in Table 12  of GSTR-1/1A applicable from the February 2025 return period.

CBIC has come out with GST Advisory on Table 12 of GSTR-1/1A. The GST Portal is rolling out Phase III changes for Table 12 of GSTR-1 & 1A from the February 2025 return period.

1. Dropdown for HSN Codes: Instead of typing HSN Codes manually, you will now select the correct HSN from the Dropdown menu.
2. New Button to download HSN/SAC code lists has been added. when you click this button, you can download an excel file containing the uploaded list of HSN and SAC codes for goods and services along with their descriptions
3. The Product names in My HSN Master button is now searchable. You can search for the product description you have saved in your My HSN Master. Once selected, the system will auto-feel details like HSN Codes, Descriptions, Unit of Quantity code, and Quantity. This feature is optional but makes data entry easier.
4. Table 12 is now split into two tabs, one for reporting B2B supplies and another for B2C Supplies
5. Validation Introduced: The system will validate the values of supplies and tax amounts reported in both tabs. for now, these validations will only show warnings if there are errors, meaning you can still file your GSTR-1 & 1A even if the validation fails.

Download -Phase III enhancement applicable from Feb-25

Implementation of Temporary Identification Number (TIN) for Unregistered Persons.

The Government has issued Notification No 07/2025-CT in which it used its power under section 164 of CGST Act,2017 has made some changes to CGST Rules 2017. These updated rules will be called the Central Goods and Services Tax (Amendment) Rules,2025. They will take effect from the date they are officially published in the Official Gazette

• Recommendation has been made in 55th GST Council meeting to insert the Rule 16A related to providing individuals or entities who are not required to registered under GST as they are not liable for GST Registration, still to comply with the law if they need to make GST related payment. If such person needs to make Payment under GST Act, a proper officer will issue Temporary Identification Number to them. The proper officer will grant this TIN and issue an order using Part B of Form GST REG-12. However, there has been also proposed the amendment in to Rule 87(4) which ensures that TIN holders can easily deposit payments into GST system like registered taxpayers.
• The Government has accept the above recommendations by issuing this Notification No 07/2025-CT effective from 23-01-2025. It means Now with effect from 23th January 2025, Unregistered Person can provide the TIN under rule 16A which allows them to make GST Payments without requiring full registration under GST. The officer will issue an order using Part B of GST REG-12 which is used for temporary registration and identification purpose.
• The Government has also update the Rule 87A to include a reference to Rule 16A, which ensures the person with TIN are explicitly allowed to make payments in to electronic cash ledger using this temporary identification. Form GST REG -12, currently used for temporary registration which is updated to reflect the process and details related to generation of TIN under Rule 16A.
• CBIC has further amend the Rule 19(1) of CGST Rules,2017 related to situation where a registered person under GST need to amend their registration details. However, Form GST CMP-02 is used to Opt In to Composition Scheme. Now if taxpayers later need to update their Category of registred person, the process is unclear the current rule. Moreover FORM GST REG-14  also not allowed to updates the category of registered person for Composition taxpayers using Form GST CMP-02.
• By issuing this notification, the government has amend the Rule 19(1) to specifically reference Form GST CMP-02. So now the taxpayer who have opted for the composition scheme can now modify their category of registered person in Table 5 of GST CMP -02 by using Form GST REG-14.

Download – Notification No 07/2025-CT

CBIC has waived late fees for delayed filling of GSTR-9C for specific years

• The CBIC has issued this notification to waive late fees for GSTR-9 & 9C filings for the FY 2017-18 to 2022-23, if filed by 31-03-2025.The waiver covers late fees exceeding the amount payable under section 47 up to the date of furnishing Form GSTR-9 for these years.
• No refund will be available for late fees already paid for delayed furnishing of Form GSTR-9C for these years.

Download – Notification No 08/2025-CT

Multiple IRPs for E-invoicing  and dual portal for e-way bill.

This advisory is issued to highlight the alternate mechanisms and business continuity plans available for both the e-Invoice and e-Waybill systems. If you have not integrated these alternate mechanisms into your existing systems or are not currently utilising them, GSTN suggest coordinating with your system integrators, IRPs, ERPs, GSPs, or ASPs to enable these redundancies. This would ensure that these mechanisms are fully operational and accessible when needed.

Multi IRPs for e-Invoice Reporting

To provide redundancy and ensure continuity, six Invoice Registration Portals (IRPs) are operational:

1. NIC-IRP 1: https://www.einvoice1.gst.gov.in
2. NIC-IRP 2: https://www.einvoice2.gst.gov.in
3. Cygnet IRP: https://einvoice3.gst.gov.in
4. Clear IRP: https://einvoice4.gst.gov.in
5. EY IRP: https://einvoice5.gst.gov.in
6. IRIS IRP: https://einvoice6.gst.gov.in

Both NIC-IRP 1 & 2 portals are interoperable, allowing seamless switch-over between them during service disruptions. These features may be tested in the NIC sandbox environment that can be accessed at https://einv-apisandbox.nic.in/. Additionally, if NIC-IRP is down any of the other e-Invoice IRPs listed above could also be used.

Dual Portals for e-Waybill Services

Similar redundancy is provided for e-Waybill operations with two portals:

1. eWaybill1 (https://ewaybillgst.gov.in)
2. eWaybill2(https://ewaybill2.gst.gov.in)

Unified Authentication Token at NIC-IRP & e-Waybill Portal

A single authentication token can be generated from any of the NIC-IRP e-Invoice1 & e-Invoice2 and NIC: e-Waybill1& e-Waybill2.

Once generated, this token is valid across all NIC portals, eliminating the need for separate tokens for each platform.

API Interoperability for Seamless Operations

Taxpayers using APIs can take advantage of cross-portal operations by configuring their systems or ensuring this with respective solution provider accordingly:

2. Accessing NIC1 e-Invoice Services via NIC2 APIs: By passing “NIC1” value in “irp” API header for APIs at https://api.einvoice2.gst.gov.in
3. Accessing NIC2 e-Invoice Services via NIC1 APIs: By passing “NIC2” value in “irp” API header for APIs at https://api.einvoice1.gst.gov.in

iii. Supported e-Invoice APIs for cross operation-

1. Get IRN Details
2. Cancel IRN
3. Get IRN Details by Doc. Details
4. Generate e-Waybill by IRN
5. Get e-Waybill details by IRN
6. For e-way bill cross operation, currently 1) Get e-way bill details & 2) Part B update APIs are available to be used interoperable via https://api.ewaybillgst.gov.in & https://api.ewaybill2.gst.gov.in/

Actions Recommended for Taxpayer

1. Direct API Access:Verify that your systems support cross-portal interoperability for seamless service access.
2. Coordination with Service Providers:Engage with your IRP, ERPs, GSPs, or ASPs to ensure alternate mechanisms are enabled and fully integrated into your systems.
3. Explore Additional IRPs:In addition to NIC-IRP 1 & 2, other IRPs are also available for use.

This advisory is issued to ensure that taxpayers are connected with the necessary backup to maintain seamless operations during any service disruptions. For further assistance, please contact your system integrators, service providers, or the GST helpdesk. More details are available at respective IRPs and e-waybill portal.

Download- GST Advisory on multiple E-invoice and e-way bill

A new option on E-way bill system for Gold has introduced.

A new option introduced in the e-way bill system starting from 20-01-2025 is to help the taxpayers in Kerala generate e-way bills for gold and related goods under chapter 71 of HSN Codes. This excludes imitation jewellery (HSN 7117).

The New EWB for Gold option is only for goods classified under Chapter 71, excluding imitation jewellery (HSN 7117). This feature applies only to intrastate movement i.e. within Kerala.

E-way Bills for imitation jewellery will continue to be generated using the regular option in the e-way bill system. For any query contact GST helpdesk. Check the detailed user guide on the E-way Bill portal for more information.

Download – GST Advisory on Gold

Deferred Implementation of Hard locking of auto-populated liability in GSTR-3B.

Earlier GST Advisory was issued:

To restrict the modification to the auto-populated liability in prefilled GSTR-3B from GSTR-1/J1A/IFF. any changes to the auto-populated liability were to be addressed through GSTR-1A. However, locking of auto-populated ITC in GSTR-3B, after roll-out of IMS will be implemented later.

With reference to the earlier GST Advisory, dated 17-10-2024 for modification in auto-populated liability in GSTR-3B from January 2025 Tax period is not currently implemented from January 2025 on GST Portal. The changes will be implemented soon and informed accordingly.

Download – GST Advisory on Hard locking of auto population

Biometric Aadhar Authentication in Tamilnadu and Himachal Pradesh

• GST Advisory has been issued for Biometric Aadhaar authentication and document verification for GST registration applicants of Tamilnadu and Himachal Pradesh.
• This functionality of Biometric Aadhaar authentication has been developed by GSTN. It has been rolled out in Tamilnadu and Himachal Pradesh on 28-01-2025.

Download – Biometric Aadhar authentication for Tamilnadu and Himachal Pradesh

Regularization of GST on Co-Insurance Premium Apportionment and Reinsurance Commission.

CBIC has issued the circular for Regularization of GST on Co-Insurance Premium Apportionment and Reinsurance Commission. The clarification issued based on the 53rd GST Council meeting held on 22-06-2024 provides guidance on the tax treatment on certain insurance related transactions that have been retrospectively added in scheduled III of the CGST Act,2017.

Two specific activities classified under Schedule III of CGST Act, they are neither treated as supply of goods or services.

Co-Insurance Premium apportionment: when lead insurer apportioned the premium to co insurer in co-insurance arrangement, it will not be subject to GST, provided that the lead insurer has already paid GST on the full premium collected from the insured.

Ceding/reinsurance commission: The commission deducted by the reinsurer from the reinsurance premium paid by an insurer will not be taxed separately as long as the reinsurer pays GST on the gross reinsurance premium, which includes ceding commission.

These changes were enacted through Finance No.2 Act,2024 and brought into effect from 01-11-2024 via Notification No 17/2024-CT dated 27-09-2024. The GST Council recommended regularization of the GST on the above transactions for the period from 01-07-2017 to 31-10-2024. As is where is basis means whatever GST was already paid earlier will not be refunded, adjusted or disturbed. If GST was not paid on such transactions there will be no demand or penalty for the past period.

Download – Circular No 244/01/2025

Clarification on applicability of GST on certain services

GST Not applicable on Penal Charges levied by Banks and NBFCs.

As per the 55th GST Council ‘s recommendation, no GST is payable on penal charges imposed by banks and NBFCs for loan non-compliance under RBI’s 18-08-2023 guidelines.

GST Exemption for Payment Aggregator on Small Transaction.

As per the 55th GST Council ‘s recommendation, RBI-regulated Payment Aggregators are eligible for GST exemption on small transaction up to Rs.2000, but this exemption is limited to settlement services and does not apply to payment Gateways.

GST on Research and development services by Government entities regularization and exemption

No GST is applicable on Research and development services funded by government grants from 10-10-2024 onwards. For the past period (01-07-2017 to 09-10-2024), any GST already paid will not be refunded and unpaid GST will not be demanded

GST Exemption restored for Skilling services by NSDC- approved training partner.

From 16-01-2025 onwards, skilling services by NSDC approved training partner are again exempt from GST.For the period 10-10-2024 to 15-01-2025, GST payments are regularized , ensuring no additional tax liability or refund issues.

GST Applicability on Facility Management Services provided to MCD Headquarters.

The Municipal Corporation of Delhi sought clarification on whether Facility management Services (Housekeeping, Civil maintenance, furniture maintenance and horticulture) provided for the upkeep of its head quarters are exempt from GST under SI No 3A of Notification No 12/2017-CTR. As per the 55th GST Council Recommendation, Facility management services provided to MCD headquarters are not exempt from GST under SI No 3A of Notification No 12/2017-CTR.

Delhi Development Authority is not Local Authority under GST.

As per the 55th GST Council’s recommendation, DDA is not local authority under GST law. To qualify as Local authority, the entity must be self-governing and similar to municipal body. DDA does not meet these crieteria, as it is not elected self governing body and does not control municipal /local fund. Hence service provided by DDA will not qualify for RCM treatment under Notification No 13/2017-CTR.

GST on Renting of Commercial Property by Unregistered Persons Regularization for Composition taxpayer.

From 10-10-2024, GST on Renting of Commercial property by an unregistered person to registered person was brought under RCM as per Notification No 09/2024-CTR dated 08-10-2024.This changes applied to all registered taxpayers, including those under the Composition levy. From 16-01-2025 onwards, Composition taxpayers are no longer liable for GST under RCM on renting of Commercial property. For the period 10-10-2024 to 15-01-2025, Past GST payments are regularized, ensuring no additional tax liability or refunds

GST Exemption for Support services by Electricity Utilities- Regularization for past period

54th Council recommended exempting certain support services provided by electricity transmission and distribution utilities such as Meter rental, Testing of meters and Transformers, Connection release , Meter shifting and duplicate bill issuance .These services were exempted from GST effective from 10-10-2024. From 16-01-2025 onwards, support service by electricity utilities are fully exempt from GST. for the period 10-10-2024 to 15-01-2025, GST payments are regularised to avoid disputes.

GST Regularization for services provided by Goethe Institute/ Max Mueller Bhawan

Goethe Institute/Max Mueller Bhawan operates six institutes across India (Delhi, Mumbai, Chennai, Bengaluru, Kolkata and Pune). These institutes offer linguistic and cultural training to students preparing for their stay in Germany. Before 01-04-2023, the institute did not collect or pay GST, believing that their services were exempt from GST. Later it was clarified that GST was applicable on their services. GST payments for Goethe Institute/Max Mueller Bhawan from 01-07-2017 to 31-03-2023 are regularized, ensuring no compliance disputes for the past period.

Download – Circular No 245/02/2025

Waiver of excess Late fee for filing GSTR-9C after the due date of the Annual return

The government has issued Clarification on Late fee for Delay in filing Form GSTR-9C. Many Taxpayers have asked whether they need to pay late fee if they file the reconciliation statement in Form GSTR-9C after the due date of the annual return (GSTR-9). To clarify the issue this circular has been issued.

Key Points of the circular:

Before 01-08-2021, businesses with turnover of more than Rs 2 crore had to get their accounts audited and submit Form GSTR-9C (duly certified by CA) along with Form GSTR-9 (Annual Return).

After 01-08-2021: The audit requirement was removed, a business with turnover of more than Rs.5 Crore now need to self-certify and file Form GSTR-9C along with Form GSTR-9 by 31st December of the following year.

Now the question is: Is late fee applicable if Form GSTR-9C filed late?

Yes. If business is required to file Form GSTR-9C, its annual return is considered incomplete until both Form GSTR-9 and Form GSTR-9C are filed. Late fee under section 47(2) will apply from the due date until the date when both forms are submitted.

How is late fee calculated?

1. if only Form GSTR-9 is required, Late fee applies only until the filing of GSTR-9.
2. If both Form GSTR-9 and Form GSTR-9C are required:

• If both Forms are filed together: Late fee applies until the date of filing
• If Form GSTR-9 is filed first and Form GSTR-9C is filed later, Late fee applies until the date of filing Form GSTR-9C.

Waiver of late fees for past years (Up to FY 2022-23):

As per Notification No 08/2025-Central Tax dated 23-01-2025, if Form GSTR-9C for any FY up to 2022-23 is filed by 31-03-2025, the excess late fee is waived.

It means:

• Late fee is only payable up to the date of filing Form GSTR-9.
• No additional late fee will be charged for the late filing of Form GSTR-9C if filed by 31-03-2025.
• However, if any late fee has already been paid, no refund will be given.

Download – Circular No 246/03/2025