Recent 2025-2026 GST Act changes significantly simplify the structure into a 5% and 18% two-slab system, replacing the old 4-tier system to reduce compliance burdens. Effective from late 2025, major reforms include lower rates on daily necessities, electronics, and insurance, while luxury/sin goods are taxed at 40%.
The GST rates in India have been simplified to three main slabs: 5%, 18%, and 40%. The 5% rate applies to essentials and common household goods, the 18% rate is the new standard for most consumer products and services, and the 40% rate is for luxury and "sin" goods.
GST Updates & Amendments in 2025: Key Changes to Know
One of the key GST updates under 2.0 reform is that it simplified the GST tax structure from a 4-slab (5%, 12%, 18% and 28%) to a 3-slab (5%, 18% and 40%). GST Council, however, meets every quarter to improve the system.
e-Invoice Time Limit: From April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of Rs. 10 crore+ must upload e-invoices to the Invoice Registration Portal (IRP) within 30 days. It reduces the chances of fake GST invoices, allowing only genuine input tax credit claims.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
What is New in 2025 HST/GST Credit Increase? Every year, the CRA adjusts federal tax benefits based on inflation. For 2025, the CRA HST credit will rise by 2.7%, starting with the July 2025 GST HST payment. While this increase is lower than 2024's 4.7%, it still brings welcome support for millions across the country.
How to Avoid GST on Overseas Purchases Legally
GSTR1/1A – From May 2025, HSN Summary of GSTR-1/ GSTR 1A requires mandatory reporting of 4-digit HSN codes for taxpayers up to ₹5 cr turnover and 6-digit HSN codes for those above ₹5 cr and these HSN codes need to be listed in the Master present on GSTN portal.
Any supplier of a taxable service who is an insurer, banking company, financial institution, or Non-banking financial company is exempt from the applicability of e-invoicing. When the supplier is a goods transport agency providing services related to the transportation of goods by road in a goods carriage.
TABLE 4A, 4B, 4C, 6B, 6C - B2B INVOICES - RECEIVER-WISE SUMMARY. In this table, you can add details of taxable outward supplies made to registered person. Additionally, invoices auto-populated from e-invoices will be available in this table. This page provides you the receiver-wise summary of the already added invoices ...
How much will I receive in October 2025? It depends on your 2024 adjusted family net income, marital status, and number of children. Maximum amounts are $533 (singles), $698 (couples), and $184 per child.
India's Goods and Services Tax (GST) system has entered a new era with the rollout of GST 2.0, effective from September 22, 2025. The Council has simplified the structure into a 5% slab for essentials, 18% for standard goods, and 40% for luxury/sin items, replacing the earlier complex categories.
Effective October 1st, 2025, a new set of rules for GST return filing will come into effect. This marks the first filing cycle under the GST 2.0 reforms, aimed at improving transparency, control, and accuracy in Input Tax Credit (ITC) management through the Invoice Management System (IMS).
Using the wrong tax codes or accounting method
Many GST mistakes are the result of using incorrect tax codes or the wrong accounting method: Tax codes: If a GST-free sale is coded as taxable in your accounting system, you'll pay GST unnecessarily. If a taxable sale is coded GST-free, you'll underpay.
What was the decision in 56th GST council meeting? The long-discussed proposal for a two-tier GST structure has now been approved (and implemented starting from 22nd September 2025): 5% GST: Applicable to most essential and everyday goods and services. 18% GST: For higher-value products and services.
The following category of tax persons are exempted from payment of 1% of GST in Cash 1. Registered taxpayers who have paid income tax above Rs 1.00 in Income Tax during the last two years continuously 2. Taxpayers who have zero-rated supplies without payment of duty and claimed refund of more than Rs 1.00 lac 3.
As there is no federal mandate for e-Invoicing, there are currently no specific penalties for non-compliance. However, in states where e-Invoicing is required for B2G transactions, failure to comply could result in delays in payment or rejection of invoices.
There are really only two circumstances where customers are exempt from paying GST. The first is if it falls under the basic exemptions such as basic food, sales at duty-free and some medicines for example. The other circumstance is when a business is small enough that they don't have to register for GST credits.
Barring of GST Return on expiry of three years
The GST network issued another advisory on 7th June 2025, implementing the rule of time-barring of GST return filing beyond three years from the due date. By this update, taxpayers will not be able to file GST returns after three years from the due date of such return.
GST 2.0: Diwali 2025 Reforms – A Game-Changer for Consumption? The government has announced a major overhaul in the GST system, aimed at simplifying tax rates. The new GST structure will reduce the number of tax slabs to just two — 5% and 18% — replacing the current multi-tier system.
According to the federal government, the maximum annual amount an individual may receive from July 2025 to June 2026 is $533, while a married or common-law couple could see up to $698 combined. The payment amounts are recalculated every July based on how much a family or individual earned in the previous tax year.
Section 69 of CGST Act, 2017 : Section 69: Power To Arrest
(a) where a person is arrested under sub-section (1) for any offence specified under sub-section (4) of section 132, he shall be admitted to bail or in default of bail, forwarded to the custody of the Magistrate; (b) in the case of a non-cognizable and.
Common Examples of GST Exempt Transactions:
Financial services – Most banking services, interest payments, and insurance premiums. Residential rent – Rental income from residential properties. Donated goods and services – Items or services that are given away without payment.