RECENT DEVELOPMENTS IN GOODS AND SERVICES TAX

According to MoF’s monthly report for September, 2025, it has been opined that India’s growth outlook remains strong with GST cuts amid festive season, stimulating both- urban and rural consumption which will boost investment and employment as well. GST cuts will weigh down inflation and price stability is likely to continue. The GST 2.0 has boosted consumer sentiment, cut compliance costs and spurred spending across sectors. The effects are visible in every key demand indicators. E-way bills generations hit an all time high in September, signaling record movement of goods, while petrol and diesel consumption rose 8 percent and 6.7 percent, respectively, from a year ago.

CBIC has consolidated 31 Customs Duty Notifications into a single comprehensive Notification which provides clarity to improve compliance, both for officers and taxpayers (importers, exporters, custom brokers). They will now have to refer to only one Notification enhancing ease of doing business and compliances.

A new Notification has been issued to amend CGST Rules, 2017 w.e.f. 01.11.2017 making changes in relation to grant of registration electronically and option for taxpayers having monthly output tax liability below threshold limit. GST registrations have been simplified w.e.f. 01.11.2025 in terms of new Rule 14A in CGST Rules, 2017 to reduce compliance burden and enhance the ease of doing business for small taxpayers.

CBIC has also issued Circular for assignment of proper officers for adjudication under section 74A and 122 of the CGST /IGST Act, 2017, along with prescribing the monetary limits for various adjudication levels under section 74A of CGST Act, 2017, under section 20 of IGST Act, 2017 and under section 122 of CGST Act, 2017.

GSTN has issued advisories on limitation for filing old pending returns which are due over three years beginning November tax period. Such returns will be barred from filing on expiry of three years from due date. Also an advisory on details of import of goods in invoice management system has been issued.

October, 2025 GST collections have been made public according to which GST collection rose to Rs. 1.95 lakh crore (4.6% on YoY basis) reflecting robust consumption and demand despite across the board rate cuts. October, 2025 was the first full month after GST rate reduction and a festive month when consumption and sales of all goods are rise. Net collection after refunds stood at Rs. 1,69,002 crore as refunds grew by 39.6% on YoY basis to Rs. 26,934 crore. It is hoped that November collections may further improve.

Amendment in CGST Rules, 2017

CBIC has issued a notification amending the CGST Rules, 2017, i.e. by way of CGST (Fourth Amendment) Rules, 2017. Accordingly,

• New Rules have been inserted:
• 9A- Grant of registration electronically
• 14A- Option for taxpayers having monthly tax output liability below the threshold limit
• Rule 10 has been amended to add reference to section 9A and 14A
• Forms have been amended - GST REG 01 and GST REG 02
• New forms substituted / inserted

• This notification shall come into force w.e.f. 01.11.2025.

(Source: Notification No. 18/2025-Central Tax dated 31.10.2025)

Nominated Agency redefined to Lists 13-15 of Customs Table I

The CBIC issued Notification No. 18/2025- Central Tax (Rate) dated 24.10.2025, to redefine “Nominated Agency” under GST pertaining to on CGST Exemption on supply of gold, silver or platinum by nominated agencies to registered persons, by substituting the Explanation for Clause (c) in the Notification No. 26/2018-Central Tax (Rate) dated 31.12.2018 as under:

“(c) “Nominated Agency means entities mentioned in Lists 13, 14 and 15 appended to Table I of notification No. 45/2025-Customs, dated the 24th October, 2025 published in the Gazette of India, Extraordinary, Part II, Section 3 Sub-section (i);” with effect from 1st November 2025.

(Source: Notification No. 18/2025-Central Tax (Rate) dated 24.10.2025)

GSTN Advisory to file pending GST returns

• GSTN has issued on advisory to file pending returns before expiry of three years.
• As per amendment in GST law by Finance Act, 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return under Section 37 (Outward Supply), Section 39 (payment of liability), Section 44 (Annual Return) and Section 52 (Tax Collected at Source).
• These Sections cover  GSTR-1, GSR-1A, GSTR 3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR 7, GSTR 8 and GSTR 9 or 9C..
• These returns will be barred for filing after the expiry of three years from the due date.
• This restriction will be implemented on the GST portal from November 2025 Tax period which means any return whose due date was three years back or more and hasn’t been filed till November Tax period will be barred from Filling. In this regard an advisory was already issued by GSTN on 29th October, 2024.
• The latest GST returns that will be barred from filing w.e.f 1st December 2025 are detailed in the table below:

• Taxpayers have been advised to reconcile their records and file their GST Returns as soon as possible if not filed till now.

(Source: GSTN Advisory dated 29.10.2025)

Introduction of Import of Goods details in IMS

• GSTN has issued an Advisory on Introduction of Import of Goods details in Invoice Management System (IMS)
• The Invoice Management System (IMS) was introduced on the GST portal from the October 2024 tax period.
• A new section for Import of Goods has been introduced in IMS wherein the Bill of Entry (BoE) filed by the taxpayer for import of goods including import from SEZ, will be made available in the IMS for taking allowed action on individual BoE.
• If no action is taken on an individual BoE, it will be treated as deemed accepted and based on the action taken, the GST Portal will generate the draft GSTR 2B for the recipient on 14th of subsequent month.
• This functionality will be available from Oct-2025 period onwards.
• Detailed advisory may be referred to on GSTN Portal.

(Source: GSTN Advisory dated 30.10.2025)

GSTN Advisory on Simplified GST Registration Scheme

• In terms of new Rule 14A inserted w.e.f. 01.11.2025, a simplified GST Registration Scheme has been introduced to reduce the compliance burden and enhance the ease of doing business for small taxpayers.
• As per Rule 14A (Option for taxpayers having a monthly output tax liability below the prescribed threshold limit), any person who, on his own assessment, feels that his total output tax liability on the supply of goods or services, or both, to registered persons will not exceed Rs.2.5 lakh per month (including CGST, SGST/UTGST, IGST, and Compensation Cess) shall be eligible to register under this scheme.
• GSTN has issued an advisory for implementation on GST portal. Accordingly,
• While applying for registration in FORM GST REG-01, applicants should select Yes under the Option for Registration under Rule 14A.
• Aadhaar authentication is mandatory for the Primary Authorized Signatory and at least one Promoter/Partner.
• Registration shall be granted electronically within three working days from the date of generation of the Application Reference Number (ARN), subject to successful Aadhaar authentication.
• This shall be subject to the following conditions in case the taxpayer wish to withdraw from the scheme in future:
• All returns due from the effective date of registration up to the date of filing the withdrawal application must be filed.
• The taxpayer must have filed:

1. Returns for a period of minimum three months, if applying for withdrawal before 1st April 2026, or

2. Returns for a period of minimum one tax period, if applying for withdrawal on or after 1st April 2026.

• No amendment or cancellation application for registration availed under rule 14A should be pending.
• No proceedings under Section 29 (cancellation of registration) for registration availed under rule 14A should be initiated or pending.

 (Source: GSTN Advisory dated 01.11.2025)

GST collection in October, 2025

• Total gross GST collection in the month of October, 2025 has grown @ 4.6% on YoY basis despite the fact that there was GST rate reduction on majority of goods meant for house hold consumption. It was Rs. 1,95,936 crore as against Rs. 1,87,346 crore in October, 2024.
• Total refunds (domestic and exports) amounted to Rs. 26,934 crore as against Rs. 19,292 crore in October 2024 showing a growth of 39.6%.
• Gross import revenue grew by 12.84% while gross domestic revenue grew only by 2% on YoY basis.
• Total net GST revenue was thus recorded at Rs. 1,69,002 crore against Rs. 1,68,054 crore in October, 2024 (i.e., growth of only 0.6%)
• Negative growth is recorded in 20 States / Union Territories in October, 2025. States with positive growth, though marginal include, U.P., Bihar, Punjab, Arunachal Pradesh, Odisha and Karnataka.