TaxTMI 
TaxTMI 
GST Changes Effective from 1 October 2025
X X X X Extracts X X X X
X X X X Extracts X X X X
....ST Changes Effective from 1 October 2025<br>By: - Sandeep Rawat<br>Goods and Services Tax - GST<br>Dated:- 24-10-2025<br><br>1. Rate Notifications and Amendments As per the latest Notification Nos. 09/2025-CTR and 10/2025-CTR (both dated 30.09.2025), several changes in tax rates and exemptions take effect from 1 October 2025: a. Revised GST Rates Certain dairy products, health supplements, and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ayurvedic preparations shifted from 12% to 18%. Electric two-wheelers and EV batteries continue under 5% concessional rate, but charging infrastructure services moved to 12% (previously 18%). Educational services supplied by private training institutions now enjoy revised exemption, subject to conditions aligned with National Skill Development norms. b. Textile and Apparel Sector Clarificatory....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... notification issued to align job work rates at 5% for the textile sector (including man-made fibers) - now explicitly covering fabric bleaching and printing processes. 2. Input Tax Credit (ITC) Reforms Following recommendations in the ICAI GST Reforms Paper (2025) and subsequent adoption by the GST Council: ITC on CSR (Corporate Social Responsibility) expenditure is now explicitly allowed, pro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vided such spending is mandated under the Companies Act. Restriction on ITC in respect of immovable property construction continues, but clarity added for fit-outs and refurbishments being treated as inputs. 3. Compliance and Return Filing Form GSTR-3B redesigned for better auto-population of ITC based on GSTR-2B reconciliation; this becomes mandatory from October 2025. Quarterly filers (QRMP ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Scheme) will now see auto-drafted IFF data integrated into GSTR-3B, minimizing mismatches. Penalty rationalization: Late fees for nil returns capped at Rs.500 per return. 4. E-Invoicing Threshold Reduced The turnover threshold for mandatory e-invoicing reduced to Rs. 2 crore (from Rs.5 crore), effective 1 October 2025. Applicable to all B2B and export supplies. 5. Place of Supply & Cross-Bord....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er Clarifications New rules introduced for Online Information and Database Access Services (OIDAR) and Software-as-a-Service (SaaS) models - place of supply now determined based on billing address of recipient, not IP location. 6. Amendments under CGST Rules Rule 36(4) (ITC restriction on missing invoices) omitted; ITC allowed only if invoice appears in GSTR-2B, eliminating provisional credit. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Rule 138E tightened - e-way bill generation to be blocked if returns are pending beyond two tax periods. 7. Sector-Specific Updates Sector Change Effective 1 Oct 2025 Real Estate 1% concessional rate for affordable housing projects under new PMAY norms continued. Healthcare GST exemption widened for medical devices supplied to government hospitals. Renewable Energy Composite supply treatment....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... clarified for EPC contracts - taxable at 12%. Gaming & Online Entertainment GST rate harmonized at 28% on full face value; retrospective disputes settled via special one-time amnesty window. 8. Budget 2025-26 Implementation Measures Section 16(2)(ba) inserted - taxpayer must ensure supplier compliance (filing of GSTR-1 & 3B) for ITC eligibility. Section 74 (fraud and suppression cases) amende....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d to reduce pre-deposit requirement to 15% (earlier 25%). New Section 122A introduced for compounding of certain procedural offences. Reply By Narayan Pujar as = Request you to pls provide reference to notification that reduced e-invoice limit from 5cr to 2 cr. Dated: 26-10-2025<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....