GST Updates of February 2025

This article GST Updates of February 2025 presents analysis of all the Notifications,Circulars, Instructions and GST Advisories issued in the month of February 2025. Reference for all the documents have been provided in the PDF form at the end of each topics.

Key Points of GST Updates of February 2025:

1. E-way Bill Requirement for goods under Chapter 71
2. Biometric Aadhaar authentication in Maharashtra and Lakshadweep
3. Procedure for handling appeal for section 128A
4. GST Registration Process Under Rule 8 of CGST Rules 2017.
5. Certain CGST (Amendment) Rules 2024 come in to force
6. Certain Clarification regarding GST Rates and Classification of Goods
7. Introduction of Form ENR-03 for enrolment of Unregistered Dealers in e-way bill portal
8. Biometric Aadhaar authentication in Jharkhand and Andaman and Nicobar Islands

Analysis:

1. E-way Bill Requirement for goods under Chapter 71:

GST Advisory has been issued for E-way Bill requirement for Goods under Chapter 71. Summary of the advisory are as under:

• As per Rule 138(14) of CGST Rules, 2017, goods classified under Chapter 71 (like gold, silver, diamonds and other precious metals and stones) do not require an e-way bill in India. However, this exemption does not apply to imitation jewellery (HSN 7117), which still requires an e-way Bill.
• The state of Kerala has made it mandatory to generate an e-way bill for goods under Chapter 71 (except imitation jewellery) when moving within in state. This requirement was introduced through Kerala’s Notification No 10/2024-State tax dated 27-12-2024.
• Earlier businesses had an optional facility to generate e-way bill for goods under Chapter 71 even though it was not required. many businesses started generating these bills voluntarily. Now, the system has been updated, an this option has been removed at the national level.
• For movement in India (except Kerala): No e-way bill is required for goods under Chapter 71. For intra-state movement within Kerala: E-way bill is mandatory as per Kerala’s notification.

Download – GST Advisory for E-way Bill for Chapter 71

2. Biometric Aadhaar authentication in Maharashtra and Lakshadweep,

• GST Advisory has been issued for Biometric Aadhaar authentication and document verification for GST registration applicants of Maharashtra and Lakshadweep.
• This functionality of Biometric Aadhaar authentication has been developed by GSTN. It rolled out in Rajasthan on 08-02-2025.

Download – GST Advisory on Biometric in Maharastra and Lakshadweep

3 .Procedure for handling appeal for section 128A.

• GST Instruction No 02/2025 has issued for procedure for handling appeal for Section 128A. Section 128A of CGST Act 2017, allows taxpayer to get waiver of interest, penalty or both for tax demands issued under section 73 for the FY 2017-18 to 2019-20. However, this waiver is subject to certain conditions.
• Some GST officers have raised doubts about whether this waiver can also apply in cases where, the Taxpayer has already paid the tax, but the department has filed an appeal due to miscalculation of interest. The Penalty was either not imposed or imposed at lower amount than the minimum required for waiver.
• To clarify these issues, the GST department issued circular no 238/32/2024-GST on 15-10-2024 which provides detailed guidance on how section 128A should be applied in such case.

Key Clarifications are as under:

• If the taxpayer has already paid the full amount of tax, but the demand notice under section 73 is only for Interest and/ or penalty, then the taxpayer can avail the benefits of section 128A.
• If the tax department has filed or planning to file an appeal just because of wrong calculation of interest /penalty the taxpayer should not be denied the benefit of section 128A. The purpose of this provision is to reduce unnecessary litigation, so technicalities should not be used to reject the benefit.

• In order to provide benefit to taxpayer, GST Officer should withdraw appeal, if an appeal filed by the department on interest and penalty issue.

• If the case is still in the review stage, the officer should accept the existing order without further dispute.
• In short, if the taxpayer paid full amount of tax but only dispute is about interest or penalty, they should still get the waiver under section 128A. Officers are instructed to withdraw unnecessary appeals and accept decisions that meet the criteria, making the process smooth and reduce the litigation.

Download – Instruction No 02/2025.

4. GST Registration Process Under Rule 8 of CGST Rules 2017.

GST Advisory has been issued for GST Registration Process Under Rule 8 of CGST Rules 2017. If you are applying for GST Registration, you must follow new rules for verification. These depend on whether you choose Aadhaar authentication or not.

1. If you choose not to authenticate via Aadhaar, you must visit GST Suvidha Kendra for photo verification and Document verification.  Once you select “NO” for Aadhaar authentication in your application, you will receive an email with nearest GSK and the required documents. You need to schedule an appointment through a link in the email. After scheduling, you will get confirmation email. On the schedule date, visit the GST Suvidha Kendra for Photo Verification and document submission.
2. If your application is flagged for biometric Aadhaar authentication, you and Primary Authorized Signatory must visit GST Suvidha Kendra for:

• Photo capturing
• Biometric authentication
• Document Verification

3. If a promoter/Partner has already completed biometric verification in any state or UT before, they do not require to do it again for another GST Registration. However, if they are also the Primary Authorized Signatory, they must visit GST Suvidha Kendra only for the document verification.

4. If the Primary Authorized Signatory has already undergone biometric verification in any state or UT, they need to visit GSK only for document verification.

5. If the Promoter/Partner and Primary authorized Signatory are the same person, they must complete photo, biometric authentication and document verification at GSK. If already verified earlier, only document verification is needed.

6. If person opted for Aadhaar Authentication and your application requires biometric verification but:

• If Promoter/Partner or Primary Authorized Signatory does not visit the GSK within 15 days,
• Biometric verification fails or
• document verification is not completed within 15 days, then the Application Reference Number will Not be generated

Download GST Advisory for GST Registration process under Rule 8

5. Certain CGST (Amendment )Rules 2024 comes in to force.

The Central Government has issued this notification using the power under section 164 of the CGST Act,2017 and Rule 1(1) of CGST(Amendment) Rules, 2024. This notification was originally published as Notification No 12/2024-Central Tax, dated 10-07-2024.

As per Notification No 12/2024-Central Tax, the following amendments to the Rules shall be applicable from the respective date mentioned in the table below.

Download – Notification No 09/2025-CT

6. Certain Clarification regarding GST Rates and Classification of Goods

GST Circular No 247/04/2025 has been issued for Certain Clarification regarding GST Rates and Classification of Goods. This clarification has been issued based on the recommendation of the 55th GST Council Meeting held on 21-12-2024 at Jaisalmer.

Key Points of Clarification:

GST Rate on Pepper of genus Piper.

• Whether it is green (Fresh), white or black it falls under HSN code of 0904. it is taxed at 5% as per notification No 01/2017- Central tax (Rate) dated 28-06-2017.
• If farmer (agriculturist) sell dried pepper directly from their farm, they do not need to register for GST. This is because farmers supplying their own cultivated produce are exempt from GST Registration under 23(1) (b) of the CGST Act.

GST on Raisins (Dried Grapes).

• Farmers (agriculturists) selling raisins do not need to register for GST. Their sale of raisins is exempt from GST under section 23(1) of the CGST Act,2017.

GST on Ready to eat Popcorn.

1. Popcorn mixed with salt and spices –

• If not Pre-packaged and labeled-5%
• If Pre-packaged and labeled -12%

2. Caramel popcorn (Sugar-coated popcorn)-18%

Past any confusion related GST on salted popcorn is regularized till 14-02-2025, on an as-is-where-is basis.

GST on Fly Ash based Autoclaved Aerated Concrete Blocks

• Fly ash bricks, fly ash aggregates and fly ash blocks – 12% GST (HSN -6815)
• Cement or Concrete articles (reinforced or not) – 18% GST (HSN-6810)

• AAC blocks with more than 50% fly ash- 12% GST (HSN 6815).

Compensation Cess on SUVs (Luxury and utility Vehicles)

• Before 50th GST Council Meeting, SUVs with engine above 1500 cc attracted 22% Compensation Cess. After 26-07-2023, the definition was updated and effective from 26-07-2023:
• it applies to any utility vehicle by any name.

• it must have engine capacity over 1500 CC, Length exceeding 4000mm, Ground clearance of 170mm (unladen/empty condition).

Download – Circular No 247/04/2025

7. Introduction of Form ENR-03 for enrolment of Unregistered Dealers in e-way bill portal

A new feature has been introduced in the E-Way Bill (EWB) system to facilitate the enrolment of unregistered dealers supplying goods, with effect from 11.02.2025. In accordance with Notification No. 12/2024 dated 10th July 2024, Form ENR-03 has been introduced for the enrolment of unregistered dealers.

Unregistered dealers engaged in the movement or transportation of goods can now generate e-Way Bills by enrolling themselves on the EWB portal and obtaining a unique Enrolment ID. This ID will serve as an alternative to the Supplier GSTIN or Recipient GSTIN for generating e-Way Bills.

User Guide for ENR-03 Enrolment:

Accessing ENR-03:

• As per the notification, an Unregistered Person (URP)can enrol using Form ENR-03.
• The option is available under the “Registration”tab in the main menu of the EWB portal.

Filling Out the ENR-03 Form:

1. Upon selecting the option, the enrolment screen will be displayed.
2. The applicant must select their Stateand enter their PAN details, which will be verified.
3. The type of enrolment must be selected, and address detailsmust be provided.
4. A mobile numbermust be entered, which will be verified via OTP.

Creating Login Credentials:

1. The user must create a username, check its availability, and set a passwordbefore submitting the details.
2. Upon successful submission, a 15-character Enrolment IDwill be generated, and an acknowledgment will be displayed.
3. This Enrolment ID can be used for generating e-Way Bills in place of a GSTIN.

Generating an e-Way Bill:

1. The enrolled URP can log in to the EWB portal using the registered credentials.
2. By selecting the ‘Generate New’option, the Enrolment ID will be auto-populated as the Supplier/Recipient.
3. Other relevant details must be entered before proceeding with e-Way Bill generation

For further assistance or queries related to this update, taxpayers may contact the GST Helpdesk or refer to the detailed User Guide attached.

https://tutorial.gst.gov.in/downloads/news/user_manual_for_enr_03_final.pdf

Download GST Advisory on ENR-03

8. Biometric Aadhaar authentication in Jharkhand and Andaman and Nicobar Islands

1. GST Advisory has been issued for Biometric Aadhaar authentication and document verification for GST registration applicants in Jharkhand and Andaman and Nicobar Islands.
2. This functionality of Biometric Aadhaar authentication has been developed by GSTN. It rolled out in Rajasthan on 15-02-2025.

Download GST Advisory on Biometric in Nicobar island