The 2025 Next-Gen GST reforms introduced a streamlined, two-tier structure with primary rates of 5% (for essential/merit goods) and 18% (for standard goods and services). This simplified system replaces the previous 12% and 28% rates, with a separate 40% rate applied to luxury and sin goods.
At its core, GST 2.0 introduces a simplified two-slab structure (5% and 18%), replacing the earlier four-tier system of 5%, 12%, 18%, and 28%. Essentials like food, medicines, and education items move to the Nil or 5% category, while household goods and consumer durables see major rate cuts.
There are 4 types of GST in India, they are:
The R1, R2, and R3 in GST represent the GST R1, GST R2, and GST R3. Here the. R1 in GST represents sales return (outward supplies) R2 in GST represents purchase return (inward supplies) R3 in GST represents both sales return and purchase return (outward and inward supplies respectively)
The GST council has fitted over 1300 goods and 500 services under four tax slabs of 5%, 12%, 18% and 28% under GST.
The revised primary GST rates now consist mainly of two slabs: 5% and 18%, replacing the earlier 0%, 5%, 12%, 18%, and 28% slabs. A higher 40% rate is applied to select luxury and sin goods, while a few niche rates like 3% and 0.25% continue to exist.
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 ...
Meaning of GSTR-2B vs GSTR-3B
On the other hand, GSTR-3B is a self-declared, monthly return that summarises a business's outward supplies, ITC claims, and total tax liability for that month. While GSTR-2B serves as a reference for available ITC, GSTR-3B is crucial for reporting monthly tax liabilities.
GSTR3B is a monthly return to be filed by a registered GST taxpayer in India. It's a simplified return that consolidates the details of outward & inward supplies.
What is Form GSTR-3B? Form GSTR-3B is a simplified summary return and the purpose of the return is for taxpayers to declare their summary GST liabilities for a particular tax period and discharge these liabilities. A normal taxpayer is required to file Form GSTR-3B returns for every tax period.
The primary difference between GSTR 2A and GSTR 3B is that GSTR 3B is a summary return filed by the taxpayer. At the same time, GSTR 2A is an auto-generated return showing details of inward supplies and ITC based on the suppliers' GSTR-1.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
GST in India has four components – CGST, SGST, IGST, and UTGST. The charge depends upon whether the transaction is intra-state or inter-state. The Central Government charges CGST, while the State Governments and Union Territories levy SGST and UTGST respectively, on intra-state supplies.
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%.
On September 22, 2025, the GST Council made a landmark decision that promises to reshape India's real estate and construction landscape. By simplifying the tax framework into a leaner two-slab system (5% and 18%), the government has delivered a long-awaited tax cut on cement — from 28% to 18%.
GST 2.0 is a restructured tax framework introduced by the GST Council, featuring a simplified two-rate system of 5% and 18%, with exemptions for essentials. It replaces the earlier multi-slab structure and introduces a 40% rate for sin and luxury goods.
Quarterly Returns with Monthly Payment (QRMP) Scheme is for eligible taxpayers to file their Form GSTR-1 and Form GSTR-3B returns on quarterly basis, while paying their tax dues on monthly basis through a challan.
"3B" has several meanings, most commonly referring to a third baseman in baseball, a type of curly hair (Type 3B) with defined ringlets, a pencil lead grade for softer/darker marks than 2B, or a Stage 3b kidney disease (moderate function loss). It can also refer to specific products like AT&T's 3B computers, security panels, or a genetic testing service (3billion).
The turnover limit for registration under GST is INR 20 lakhs (INR 10 lakhs for special category states). Therefore, even if your turnover is less than INR 20 lakhs, you may still be required to file GSTR-3B if your turnover exceeds INR 5 crores.
Filing of Form GSTR-3B is mandatory for all normal and casual taxpayers, even if there is no business activity in any particular tax period. So, for such tax period(s), the return can be filed as NIL (if all conditions for filing Nil return is satisfied).
Form GSTR-2B is available only for the following types of taxpayers: Normal taxpayers. SEZ taxpayers. Casual taxpayers.
GSTR-2A is a dynamic purchase-related tax statement, while GSTR-2B is a static monthly ITC statement. GSTR-2B helps businesses identify eligible ITC, whereas GSTR-2A keeps updating as suppliers upload invoices. ITC claims should be aligned with GSTR-2B, not GSTR-2A.
Transaction Value: B2CL invoices are for big transactions over ₹2.5 lakhs. B2CS invoices are for smaller transactions below this amount. Nature of Transactions: B2CL is only for transactions between different states. B2CS can be for transactions within the same state or between different states.
Table 4A, 4B, 4C, 6B, 6C - B2B Invoices: To add an invoice for taxable outwards supplies to a registered person.
GST audit checklist - Records/ documents likely to be verified during GST audit