Skip to main content

Major GST & Filing Updates 2025: Must-Know for Businesses

Image
By Arpit Kulshrestha
New GST Updates for Businesses

In 2025, India made amendments to its Goods and Services Tax (GST) system, which was introduced in 2017. The primary purpose of this amendment is to ensure that businesses and individuals comply with tax regulations, reduce tax fraud, and streamline tax management through the use of technology.

The GST Network (GSTN) and the Central Board of Indirect Taxes and Customs (CBIC) have implemented new processes and software systems to streamline the tax return filing procedure for individuals. These improvements aim to simplify the tax filing process, minimise errors, and ensure that all taxpayers, as well as tax professionals, fulfil their tax obligations responsibly.

Updates for the same have been given, and the impact they have had on business, accounting, and GST software providers.

GSTR‑3B Locking Mechanism Introduced from July 2025

In 2025, an amendment was introduced regarding how businesses report their taxes using GSTR-3B. Now, the details of sales made by businesses, referred to as outward taxable supplies, will be automatically submitted through another report called GSTR-1. Once the sales data is entered, businesses will not be able to manually edit this information.

The updated system is designed to ensure that the sales information reported each month aligns precisely with the summaries submitted by businesses later on. This change aims to reduce errors and confusion, which have often occurred during the tax process. Businesses must correct any inaccuracies in their sales data within the GSTR-1 report before filing their GSTR-3B.

Impact:

  • Ensures data accuracy and cross-verification
  • Requires businesses to finalise their outward supplies in GSTR-1
  • Puts the responsibility on accountants and GST software to prevent errors

Year Time Limit for Filing Returns

W.e.f. On July 1, 2025, the new rule shall be placed for the goods and services tax (GST) returns. You shall file your GST returns for the three years only after their deadline. This is applicable for various types of returns, such as GSTR-1, GSTR-3B, GSTR-4, and GSTR-9. 

Post 3 years, the system shall no longer accept any old returns. The same amendment is made to support handling and clearing the old filings that have not been submitted. Also, its objective is to enhance the accuracy and trustworthiness of past tax information, making it easier for audits and financial checks.

Impact:

  • Motivates timely compliance
  • Helps lessen pendency in the GST portal
  • Taxpayers should act quickly to clear backlogs before the due date

New e-Way Bill Portal Launched (EWB 2.0)

The Goods and Services Tax Network (GSTN), to handle the increased traffic and reduce the service interruptions, has introduced a new secondary e-Way Bill portal at ewaybill2.gst.gov.in. The same extra portal permits users to generate e-way bills without disruption, even when the main system sees technical issues.

The same upgrade is effective in the durations of busy filing and for the transporters and suppliers who rely on the constant e-way bill services for their logistics requirements.

Invoice-Level Reporting for GSTR-7 and GSTR-8

The government has changed the rules for the reporting of specific tax information for businesses, which are being revised starting in 2025. Companies now, rather than only furnishing a summary, should include the detailed information for each invoice at the time of filing their taxes under the particular forms called GSTR-7 and GSTR-8.

This new requirement supports tracking transactions effectively, lowers tax evasion, and makes it easier to ensure that the correct amount of tax has been collected or deducted.

QR Code Mandate for B2C Invoices Above ₹500

In the law in 2025, a significant change was made that requires all businesses to include QR codes on customer invoices for purchases over ₹500. Such QR codes secure some data like the invoice number, the date of the transaction, the business's tax identification number, the amount that was taxable, and the total tax applied. The motive is to make the invoicing transparent and simpler for consumers to access the information.

Read Also: How Gen GST Software Protects Your Biz from Penalties

Why is it significant?

  • Streamlines faster checks at retail points
  • Supports digital audits and verifications
  • Requires the billing software to be updated accordingly

Enhanced Authentication: Aadhaar and Biometric

CBIC for fighting against bogus registrations and invoices has initiated the use of biometric Aadhaar authentication in some states and for high-risk situations. Also, on logging into the GST portal, the e-way bill portal, or the e-invoicing system, it must use Multi-Factor Authentication (MFA). It directed that more security steps are required to ensure that everyone is who they claim to be.

This two-step verification process improves data security and prevents unauthorised access to the sensitive tax information.

Audit Threshold Raised to ₹10 Crore

In 2025 from ₹5 crore to ₹10 crore the audit limit for the GST registered entities was surged. The same move has lessened the compliance loads for the smaller businesses while permitting the tax department to focus its audit resources on larger entities.

Audits are still being called for the entities that are less than Rs 10 crore if discrepancies are discovered via analytics or AI-driven anomaly detection.

Closure: In 2025, amendments were performed for the management of Goods and Services Tax (GST) in India. The revision has the purpose of making the tax system automated, consistent, and transparent. Small and large businesses must ensure they have updated GST software. It comprises the features that help lock in reports, manage workflows, track invoices easily, and even generate QR codes.

Such amendments present both challenges and opportunities for tax professionals and software developers. They should make efficient systems that follow the updated norms while making the tax filing process easier and less prone to errors.

With the development of the GST, staying ahead of updates will be important for easier compliance.

Businesses and accountants can easily manage Goods and Services Tax (GST) requirements under GST software. Software assists tasks such as creating and submitting tax returns, managing invoices, keeping track of financial data, generating e-way bills for transporting goods, and organising records according to tax laws. 

GST software helps in lessening mistakes, saves time, and enhances efficiency when dealing with taxes by easing the complicated tax calculations and ensuring that everything is submitted on time.



Location: India

Comments

Post a Comment

Popular posts from this blog

GST: Assessees Must E-file Their Tax Returns by 30th Nov 2024 to Claim Pending ITC

By Arpit Kulshrestha
If you are a GST-registered assessee you need to consider the due date to avail of any due Input tax credit or revised errors/omissions for the FY 2023-24 is November 30, 2024, via submitting the appropriate GST forms. Missing the due date can produce an outcome of a financial loss as the unclaimed ITC could not be used to offset your output tax obligation. What is the Method to Claim the Due ITC or Revised GST Errors for the FY 2023-24 It was stressed by the tax experts that the GST law specifies the procedure to claim the due ITC via GSTR-3B and amend errors in GSTR-1. Filing GSTR-1: Errors induced in GSTR-1 can be rectified by making amendments in the following GSTR-1 filings. Filing GSTR-3B: Via the GSTR-3B return the obligated ITC can merely be claimed. November 11, 2024, was the due date to submit the GSTR-1, and November 20, 2024, is for GSTR-3B without any penalty. Both the outcomes can be provided till November 30, 2024, as per the late fees. R...
Post a Comment
Read more

How ITR Software Assists Individuals in Filing Tax Returns

By Arpit Kulshrestha
Every assessee's process of income tax return (ITR) filing is significant, as it contributes to Indian's economy. The Income Tax Department has made efforts to facilitate this approach in recent years, but numerous people still see themselves steering a difficult financial system, multiple tax deductions, miscellaneous exemptions, and changing tax laws. This complexity can turn what must be an easy task into a significant challenge. In this context, income tax software evolves into an important partner, presenting a useful variety of accuracy, efficiency, and reassurance. The software enables return filing that permits taxpayers to handle their financial responsibilities when complying with the law. 1. Accurate Tax Calculations An incorrect income tax calculation of taxes could result in messages from the Income Tax Department or missed refunds. The tax software helps in finding taxable income and tax deductions that you may be allowed, like insurance or home loans. The co...
Post a Comment
Read more

Why Small Firms Should Consider Gen Payroll Software?

By Arpit Kulshrestha
Businesses in this competitive era would be required to manage the payroll. Payroll software has multiple operations such as paying employees, following tax laws, managing employee benefits, filing important documents, and keeping accurate records. Businesses that manage tasks manually or with spreadsheets can result in inappropriate compliance and issues, wasting time in doing operations. Gen Payroll software arrives to manage payroll with accuracy and resolve the issues that come therein. The merits and demerits of Gen Payroll software are mentioned below. Gen Payroll Software Gen Payroll is a payroll management software made by SAG Infotech . It eases and automates the process of payroll. The software’s features are tracking employee attendance, calculating salaries, ensuring compliance with laws like PF (Provident Fund), ESI (Employee State Insurance), and TDS (Tax Deducted at Source), as well as generating payslips. Businesses, whether small or large, can use this software. ...
2 comments
Read more