New GST Update 2025: Registration, Payment, Filing and Tax Benefits

New GST Update 2025: Running a small business in India—say, a kirana store in Patna or a freelance graphic design gig in Pune—means you’re no stranger to taxes. You’re tracking every sale, issuing invoices, and making sure you’re square with the government. The Goods and Services Tax (GST), which replaced a disorganized patchwork of taxes like VAT, has been the mainstay of India’s indirect tax system since its introduction in July 2017. and service tax with a single, streamlined tax. By 2025, GST is getting a fresh set of updates to make compliance easier, reduce litigation, and support businesses, especially small and medium enterprises (SMEs).

What is GST and What’s New in 2025?

Let’s start with the basics. GST, or Goods and Services Tax, is a tax on the supply of goods and services, applied at every stage from manufacturing to the final sale. The beauty of GST is that businesses can claim Input Tax Credit (ITC) for taxes paid on their purchases, so only the end consumer pays the full tax. Managed by the Central Board of Indirect Taxes and Customs (CBIC) and the GST Council, GST has unified India’s tax system, making it easier to move goods across states and reducing tax evasion. By 2025, over 1.4 crore businesses are registered, generating ₹1.8 lakh crore in annual revenue.

In 2025, the GST system is getting a tune-up to address pain points like compliance complexity and litigation. The GST Council, led by Finance Minister Nirmala Sitharaman, has introduced changes from April 1, 2025, based on the 55th and 56th GST Council meetings (December 2024 and June 2025). These updates focus on digital security, simplified returns, and relief for small businesses. Key changes include mandatory e-invoicing for more businesses, enhanced two-factor authentication (2FA), and reduced tax disputes. Whether you’re a startup founder or a vegetable vendor, these updates aim to make your life easier. Let’s dive into the eligibility, payment details, and what’s new.

eDistrict UP 2025

Ladli Behna Yojana 27th Installment

Who Needs to Register for GST? Eligibility in 2025

GST registration is mandatory for certain businesses and individuals, but not everyone has to sign up. Here’s who needs to register in 2025:

• Businesses with Turnover Above Threshold:

1. Goods: If your annual turnover exceeds ₹40 lakh, you must register. For special category states (e.g., Northeast states, Jammu & Kashmir, Himachal Pradesh, Uttarakhand), it’s ₹20 lakh.
2. Services: If your turnover is above ₹20 lakh (₹10 lakh in special category states), registration is required.

Example: A bakery in Lucknow with ₹50 lakh in sales needs a GSTIN, but a freelance tutor in Assam with ₹15 lakh (services) doesn’t.

• Interstate Suppliers: If you supply goods or services across state lines, you must register, regardless of turnover. For instance, a Chennai-based software developer serving clients in Hyderabad needs GST registration.
• E-commerce Sellers: If you sell on platforms like Flipkart or Amazon, you need a GSTIN, even with low turnover. E-commerce operators must collect 1% Tax Collected at Source (TCS).
• Casual Taxable Persons: Temporary businesses (e.g., a vendor at a Diwali mela) need to register for the duration of their activity.
• Non-Resident Taxable Persons: Foreign businesses supplying goods/services in India must register, no matter the turnover.
• Input Service Distributors (ISDs): Companies distributing ITC to branches (e.g., a bank with offices in multiple states) need a GSTIN.
• Composition Scheme: Businesses with turnover up to ₹1.5 crore (₹75 lakh in special category states) can opt for the Composition Scheme, paying a flat tax rate (1–5%) with simpler returns.

You’re exempt from registration if:

• Your turnover is below the threshold, and you don’t supply interstate or via e-commerce.
• You deal only in exempt goods/services (e.g., unprocessed food, healthcare, education).

New in 2025: The Invoice Registration Portal (IRP) now applies to businesses with turnover above ₹10 crore (down from ₹100 crore), effective April 1, 2025. This means more businesses must report B2B invoices within 30 days to generate an Invoice Reference Number (IRN), or ITC claims may be rejected.

GST Benefits: Why It’s a Game-Changer

GST isn’t just about paying taxes—it’s about simplifying business and benefiting everyone. Here’s what it offers in 2025:

For Businesses

• Input Tax Credit (ITC): Claim credit for taxes paid on inputs (e.g., raw materials, office rent), reducing your tax liability. For example, a tailor pays GST on fabric but claims ITC when selling clothes.
• Simplified Compliance: One tax replaces multiple old taxes, with online filing on gst.gov.in. New auto-drafted GSTR-2A/2B forms make ITC reconciliation easier.
• Ease of Movement: E-Way Bills (valid for 180 days, extendable to 360 days) ensure seamless goods transport across states.
• Composition Scheme: Small businesses pay a flat tax (1% for traders, 2% for manufacturers, 5% for restaurants) and file quarterly returns, cutting paperwork.
• Digital Tools: The GST portal offers real-time tracking of returns, payments, and ITC. New 2FA/MFA for taxpayers with turnover above ₹5 crore (from February 1, 2025) enhances security.

For Consumers

• Lower Costs: ITC can reduce prices for essentials like food (0–5% GST) or electronics (18%).
• Transparency: GST invoices show the exact tax, so you know what you’re paying.
• Uniform Pricing: Goods cost the same across states, unlike the old system with varying state taxes.

For the Economy

• GST generates ₹1.8 lakh crore annually, funding schemes like PM-KISAN and Ayushman Bharat.
• Digital tracking and e-invoicing curb tax evasion.
• The 2025 litigation reduction (withdrawing low-value tax appeals) frees up ₹10 lakh crore in disputed tax demands, easing business burdens.

GST Payment Details: Amounts and Dates in 2025

GST isn’t a welfare scheme with fixed payments to individuals—it’s a tax system where businesses collect and deposit taxes. Payment amounts depend on your sales, ITC, and tax slab. Here’s the breakdown for 2025:

GST Rates

GST rates remain largely unchanged in 2025, with five main slabs:

• 0%: Essentials like food grains, milk, unbranded atta, healthcare, and education.
• 5%: Packaged food, footwear below ₹1,000, transport services, millet flour (pre-packaged).
• 12%: Processed foods, mobile phones, business-class air tickets.
• 18%: Telecom, IT services, AC restaurants, branded goods, Extra Neutral Alcohol (ENA) for industrial use.
• 28%: Luxury goods (cars, ACs), sin goods (tobacco, aerated drinks), with cess up to 204% on items like cigarettes.

2025 Rate Updates (from 55th GST Council, December 2024):

• Millet flour (70% millet, loose): 0% (5% if pre-packaged).
• Molasses: Reduced from 28% to 5%.
• ENA for industrial use: 18% under a new tariff code.

The GST Council is exploring rate rationalisation in 2025, potentially merging slabs (e.g., 12% and 18%) to simplify the structure. Petroleum products (petrol, diesel) remain outside GST, but discussions continue.

Payment Amounts

• Regular Taxpayers: Pay net tax (output tax on sales minus ITC) monthly or quarterly:
  • Turnover > ₹5 crore: Monthly via GSTR-3B.
  • Turnover ≤ ₹5 crore (QRMP Scheme): Quarterly via GSTR-3B, with monthly Invoice Furnishing Facility (IFF) for B2B invoices.
• Composition Scheme:
  • Traders: 1% of turnover.
  • Manufacturers: 2% of turnover.
  • Restaurants: 5% of turnover.
  • Paid quarterly via CMP-08.
• TDS/TCS:
  • TDS (1%): Deducted by government entities, paid via GSTR-7.
  • TCS (1%): Collected by e-commerce operators, paid via GSTR-8 (reduced from 2% pre-July 2024).

Payment and Filing Dates in 2025

GST compliance means filing returns and paying taxes on time to avoid penalties (18% interest p.a. or ₹200/day late fees). Here’s the 2025 schedule for Uttar Pradesh farmers:

How to Register for GST in 2025

Registration is mandatory if you meet the eligibility criteria. Here’s how to do it:

Online (gst.gov.in)

• Go to the Portal: Visit gst.gov.in, click “Services” > “Registration” > “New Registration.”

• Part A: Enter your business name, PAN, email, mobile, and state. Verify with OTPs.

• Get TRN: Receive a Temporary Reference Number (TRN), valid for 15 days.

• Part B: Log in with TRN and submit:

1. PAN card.
2. Aadhaar card (for e-KYC).
3. Business proof (e.g., rent agreement, utility bill).
4. Bank details (passbook/cancelled cheque).
5. Authorised signatory details and photo.

• E-KYC: Verify via Aadhaar OTP or biometrics at a GST Suvidha Kendra. Uttar Pradesh rolled out biometric Aadhaar authentication on March 15, 2025.

• Submit: Review and submit. Get your GSTIN within 7–10 days.

• Download Certificate: Access your GST registration certificate on the portal.

Offline (GST Suvidha Kendra/CSC)

1. Locate a Kendra: Find one via gst.gov.in or your local post office.
2. Submit Documents: Provide PAN, Aadhaar, business proof, bank details, and photo.
3. Fill Form: Staff will complete GST REG-01 and upload documents.
4. Pay Fee: ₹100–₹200 service fee may apply.
5. Get GSTIN: Receive your GSTIN within 7–10 days.

Registration is free on the GST portal. Contact the helpline (1800-425-0232, effective August 1, 2025) for issues.

Filing Returns and Making Payments

Here’s how to stay compliant:

• Log In: Use your GSTIN and password on gst.gov.in.

File Returns:

• GSTR-1: Report sales by the 11th (monthly) or 13th (IFF, quarterly).

• GSTR-3B: Pay tax and file by the 20th (monthly) or 22nd/24th (quarterly).

• CMP-08/GSTR-4: Quarterly/annual for composition scheme taxpayers.

Pay Taxes:

• Use net banking, UPI, NEFT/RTGS, or over-the-counter (for amounts below ₹10,000).

• Track Status: Check under “Services” > “Returns Dashboard.”

GST Updates for 2025

The GST Council and CBIC have introduced changes to streamline compliance and reduce disputes:

• E-Invoicing Expansion: From April 1, 2025, businesses with turnover above ₹10 crore must report B2B invoices to the IRP within 30 days. This ensures real-time invoice validation and ITC accuracy.
• 2FA/MFA: Mandatory for:
  • Turnover > ₹20 crore: January 1, 2025.
  • Turnover > ₹5 crore: February 1, 2025. Enhances e-Way Bill and e-invoice security.
• TCS Changes: Section 206C(1H) (TCS on goods sales above ₹50 lakh) is removed from April 1, 2025. Section 206CCA (higher TCS for non-ITR filers) is also scrapped, easing compliance.
• Litigation Reduction: FM Sitharaman directed CBIC to withdraw tax appeals below ₹60 lakh (ITAT), ₹2 crore (High Court), and ₹5 crore (Supreme Court) by FY 2025–26, resolving 2.25 lakh cases and ₹10 lakh crore in disputes.
• Amnesty Scheme: File SPL-01/02 by June 30, 2025, for tax waivers, with payments due by March 31, 2025. If payment details don’t auto-populate, upload them manually.
• GSTR-7/8 Updates: New formats capture detailed TDS/TCS data for better compliance.
• E-Way Bill2 Portal: Synchronises e-Way Bill data in real-time, reducing errors.
• Rate Rationalisation: The Group of Ministers (GoM) is studying merging 12% and 18% slabs and including petroleum products under GST. No final decisions yet.

Why GST 2025 Updates Matter

The 2025 updates make GST more accessible and less burdensome:

• For Businesses: E-invoicing, 2FA, and TCS removal reduce compliance hassles. Litigation cuts free up capital for growth.
• For Consumers: Potential rate rationalisation could lower prices for goods like electronics (18%) or eco-friendly products (5%).
• For the Economy: GST’s ₹1.8 lakh crore revenue supports welfare schemes, while digital tools curb tax evasion.

Conclusion: New GST Update 2025

The GST updates for 2025 are all about making taxes simpler, safer, and fairer. From e-invoicing for businesses above ₹10 crore to litigation relief freeing up ₹10 lakh crore, the government is listening to taxpayers. Whether you’re a street vendor in Agra or a tech entrepreneur in Gurugram, GST’s digital tools, Composition Scheme, and ITC make compliance manageable. File your GSTR-1 by the 11th, GSTR-3B by the 20th, and check gst.gov.in for updates. With the next quarterly payment due April 24, 2025, and annual returns by December 31, 2025, stay on top of deadlines to avoid penalties. GST is more than a tax—it’s a system empowering businesses and consumers, one invoice at a time.

FAQs about New GST Update 2025