GST News & Updates – January 2025

Here are the key GST updates for January 2025:

1. GST revenue collections for the month of Jan, 2025: India’s goods and services tax (GST) collection in January 2025 stood at ₹1,95,506 crore, registering a 12.3% Year-o-Year growth over the revenue of ₹1,74,106 crore collected in January 2024.
2. Aadhaar Authentication Expansion: Biometric Aadhaar verification for GST registration is now mandatory in several states, including Tamil Nadu, Himachal Pradesh, Rajasthan.
3. Filing Rectification Applications for ITC Demand Orders for Section 16(4) as per Notification No. 22/2024-CT: The said notification dated October 8, 2024 enables registered taxpayers to file an application for rectification of demand orders issued under sections 73/74, concerning wrongly availed ITC under section 16(4) of the CGST Act. This rectification is applicable when the ITC is now available under the newly introduced sub-sections (5) and/or (6) of section 16.
   • A new functionality on the GST Portal allows taxpayers to:
     • Log in and navigate to Services > User Services > My Applications.
     • Select “Application for rectification of order” as the application type.
     • Click the NEW APPLICATION button to initiate the process.
   • Additionally, Annexure A must be filled with details of the demand order concerning the ITC issue and uploaded during the application process
4. Mandatory HSN Code Inclusion & Enhanced Table-12 Reporting in GSTR-1 & 1A:
   • Phase-III Implementation: Starting February 2025, Table 12 of GSTR-1 & 1A will undergo changes following the successful completion of Phases I and II.
   • HSN Code Entry: The manual entry of HSN codes has been replaced with a dropdown selection, ensuring correct HSN code selection.
   • Table-12 Updates: The table is now split into two tabs B2B and B2C to separately report supplies.
5. New E-Way Bill Option for Gold Introduced in Kerala:
   • Effective January 20, 2025, a new option, “EWB for gold” for generating E-Way Bills (EWB) for gold is available in Kerala.
   • The option applies exclusively to goods under Chapter 71 (excluding HSN 7117, which covers Imitation Jewellery) for intrastate movement within Kerala.
   • Imitation Jewellery: Taxpayers dealing with imitation jewellery (HSN 7117) will continue to use the standard EWB generation option.
6. Delay in implementation of Hard-Locking of Auto-Populated Liability in GSTR-3B:
   • An advisory dated October 17, 2024, had indicated that auto-populated liability in GSTR-3B would be non-editable starting from the January 2025 tax period.
   • Due to requests from the trade seeking additional time, the implementation of this change has been postponed.
   • Taxpayers are advised to prepare for the eventual change.
7. Rule 16A Grant of Temporary Identification Number:
   • A new rule has been inserted into the Central GST Rules, 2017. This rule allows the proper officer to grant a temporary identification number and issue an order in Part B of FORM GST REG-12 to a person who is not liable to register under the Act but is required to make a payment under the Act.
   • Reference : Notification 07/2025 CT
8. Late fee Waiver for Filing of GSTR 9C: The Notification No. 08/2025 – CT and Circular No. 246/03/2025-GST has been issued to provide relief regarding late fees for delayed filing of FORM GSTR-9C (Reconciliation Statement) along with the annual return (FORM GSTR-9).
   • The late fee under Section 47 of the CGST Act is waived for delayed filing of FORM GSTR-9C for financial years 2017-18 to 2022-23, provided it is furnished on or before 31st March 2025. This waiver applies to the excess late fee beyond the prescribed limit. No refunds will be given for late fees already paid.
   • The annual return (FORM GSTR-9) is considered incomplete if FORM GSTR-9C (where required) is not furnished along with it.
   • The late fee is calculated from the due date of FORM GSTR-9 until both FORM GSTR-9 and FORM GSTR-9C are filed.
   • Late fees are not charged separately for FORM GSTR-9 and FORM GSTR-9C but are applicable for the entire period of delay until both are submitted.
   • The waiver applies only if FORM GSTR-9C is filed by 31st March 2025 for the mentioned financial years.
   • Impact on Taxpayers:
     • Taxpayers who missed filing FORM GSTR-9C for previous years now have an opportunity to file it without additional late fee
     • Ensuring compliance before 31st March 2025 will help avoid penalties.
     • Going forward, taxpayers must file FORM GSTR-9C along with FORM GSTR-9 to prevent late fee accumulation.