GST Compliance Changes You Must Know

GST compliance regulations are frequently updated to enhance tax administration, reduce fraud, and simplify procedures. Here are some key GST compliance changes you should be aware of in 2025:

1. E-Invoicing Expansion

• • The mandatory e-invoicing threshold has been reduced. Businesses with a turnover above ₹5 crore must generate e-invoices.
  • Ensure that your invoicing systems comply with the latest e-invoicing requirements.

2. Increased Scrutiny on ITC (Input Tax Credit)

• • ITC claims are now strictly matched with GSTR-2B, limiting the provisional credit.
  • Businesses must reconcile purchase invoices with supplier filings to avoid ITC mismatches.

3. GSTR-3B & GSTR-1 Auto-Population

• • GST return filing has become more automated, with GSTR-1 details auto-populating in GSTR-3B.
  • Any discrepancy between the two may lead to notices or rejection of ITC claims.

4. GST Amnesty Scheme (If Announced)

• • The government may introduce an amnesty scheme for late filers, allowing businesses to clear pending returns with reduced penalties.

5. Penalties for Non-Compliance & Fake Invoices

• • Increased vigilance on fake ITC claims and fraudulent invoicing.
  • Non-compliance with e-invoicing and filing deadlines may attract heavy penalties.

6. Changes in Composition Scheme

• • Threshold updates and compliance relaxation for small businesses under the Composition Scheme.
  • Quarterly returns and annual payment options to reduce compliance burden.

7. Biometric-Based Registration

• • Some high-risk taxpayers may be subject to biometric authentication to curb fake registrations.

8. Mandatory Aadhaar Authentication

• • New businesses must complete Aadhaar authentication for GST registration to prevent misuse.

9. Changes in GST Rate Structure (If Announced)

• • The GST Council might revise tax slabs for various goods and services, so stay updated on rate changes affecting your business.