Recent Amendments in GST from 1st April 2025: New Rules and Updates
Procedure for recovery of dues of the earlier laws under GST
The CBIC has prescribed the procedure for the recovery of dues of the earlier laws under the GST regime. Section 142(6)(b) and Section 142(7)(a) of the CGST Act, 2017 govern such recovery in the GST regime.
As per the said sections, if any amount becomes recoverable due to the disposal of any appeal, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under the GST Act and the amount so recovered shall not be admissible as ITC under the GST Act.
The government is bringing some important recent amendments to the existing Goods and Services Tax (GST) framework for ease of business, improved tax governance, supported digital security, and conducted operational consistency. This new financial year, started on 01.04.2025, businesses should be ready ahead of time rather than expecting any less. Find the most important updates that will keep you ahead of the competition by going on.
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Key Amendments effective from 1st April, 2025
Mandatory Multi-Factor Authentication (MFA)
The National Informatics Centre (NIC) presented two-factor authentication (2FA)/multi-factor authentication(MFA) to log in to the e-way bill or e-invoice strategy a long time ago. This criterion needed taxpayers to certify their login using two or more verification processes, decreasing the chance of unauthorised access.
Implementation Timeline:
- For taxpayers whose Annual Aggregate Turnover (AATO) exceeds ₹20 crores, it became mandatory on January 1, 2025.
- This was extended to taxpayers with an AATO of more than ₹5 crores on February 1, 2025.
- All taxpayers are liable for this as of April 1, 2025, irrespective of turnover.
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Mandatory Input Service Distributor (ISD) Registration
Until now, organisations with numerous GST registrations under a single PAN could use either the Input Service Distributor (ISD) mechanism or the cross-charge approach to distribute common input services like rent, audit fees, and software licenses. Many preferred cross-charge for its operational simplicity, despite complexities in ITC distribution and tax reconciliation.
However, from April 1, 2025, ISD registration will become mandatory for such taxpayers. Businesses must issue ISD invoices and file GSTR-6 returns to distribute Input Tax Credit (ITC) across branches, ensuring better traceability and standardised reporting.
Amendments to GSTR-7 and GSTR-8 Formats
Via Notification No. 09/2025–Central Tax, dated February 11, 2025, the government presented transformations to the GSTR-7 (TDS) and GSTR-8 (TCS by e-commerce operators) forms to grab more detailed transaction details.
- GSTR-7: The format has been changed to have invoice/document-wise details of tax deducted. It now needs additional data like the deductee’s GSTIN, invoice details, amount paid, and tax deducted.
- GSTR-8: The form has been updated to provide complete details of supplies made through e-commerce platforms, enabling enhanced compliance and reporting accuracy.
e-Way Bill Generation and Extension Restrictions
To maintain the tracking of goods movement, new rules on e-Way Bill generation and extension will take effect:
- Generation Restriction: It starts January 1, 2025, e-Way Bills can only be developed for documents dated within the previous 180 days. For example, from April 1, 2025, any document dated before October 3, 2024, will be ineligible for e-Way Bill generation.
- Extension Limitation: e-Way Bill extensions will be limited to a maximum of 360 days from the original generation date. So, an e-Way Bill generated on April 1, 2025, can only be extended up to March 27, 2026.
30-Day Time Limit for E-Invoice Reporting Extended to More Taxpayers
To strengthen reporting discipline and curb tax evasion, the government has extended the 30-day time limit for reporting e-invoices on the Invoice Registration Portal (IRP) to taxpayers with Annual Aggregate Turnover (AATO) above ₹10 crore, effective April 1, 2025.
Previously, this rule applied only to businesses with AATO above ₹100 crore.
Taxpayers in this category must now ensure all B2B invoices are reported to the IRP within 30 days from the invoice date. Missing this deadline will result in the invoice being rejected for IRN generation, which may affect input tax credit claims and delay further compliance.
Form GST REG-16 has been amended to include the following:
(i) The particulars of registration of entity in which earlier entity is transferred, in case of change in constitution leading to change in PAN.
(ii) An option to furnish an application, instead of filing the return for the month in which the effective date of surrender of registration falls, has been provided, in case no taxable supplies have been made during the intervening period (i.e. from the date of registration to the date of application for cancellation of registration).
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Notification No. 60/2018-CGST, dated 30.10.2018
Due date for filing the final return after cancellation of registration.
The due date for filing the final return in Form GSTR-10 is 31st December, 2018, for the persons whose registration under the CGST Act, 2017 has been cancelled by the proper officer on or before the 30th September, 2018.
It shall be noted that Form GSTR-10 appears on the GST portal after the order from the Department, for the cancellation of registration, has been received by the person.
Notification No. 58/2018-CGST, dated 26.10.2018rZ
No requirement of deducting TDS by the Authorities under Ministry of Defence
As per Section 51(1)(a) of the CGST Act, 2017, the department or establishment of the Central Government or State Government, w.e.f. 1st October, 2018, shall be required to deduct TDS @ 2% (1% as CGST & 1% as SGST) from the payment made or credited to the supplier of taxable goods or services, where the total value of such supply, under a contract, exceeds Rs.2.5 lakhs.
However, the authorities under the Ministry of Defence has been exempted from deducting TDS w.e.f. 01.10.2018, other than certain specific authorities as notified under Notification No. 57/2018-CGST, dated 23.10.2018.
