GST Regulations Update: All You Need to Know (Feb 18-24, 2025)

Overview

With fresh announcements, notices, and modifications that affect both taxpayers and companies, India's Goods and Services Tax (GST) system is always changing. Since February 18, 2025, until February 24, 2025, a number of significant events have occurred.

The main GST adjustments are highlighted in this page, along with modifications to the Composition Scheme for FY 2025–2026, the need that scrap supply taxpayers submit an E-Way Bill, and other compliance procedures.

Important GST News for Week 47/2024-25 Dated February 23, 2025

1. FY 2025–2026 Composition Scheme

Through the GST site, taxpayers can now choose to participate in the Composition Scheme for the fiscal year 2025–2026. Small companies benefit from this arrangement because it lowers compliance obligations by enabling them to pay tax at a set rate rather than regular GST rates.

How Do I Apply?

Taxpayers who choose to use the Composition Scheme must:

• Access the GST Portal by logging in (https://www.gst.gov.in/).
• To choose the Composition Levy, go to "Services → Registration → Application."
• Send in the application before March 31, 2025.
• Fill out Form CMP-02 to finish the procedure.

Important Note: Only taxpayers with a yearly turnover of less than Ôé╣1.5 crore (Ôé╣75 lakh for special category states) are eligible for the Composition Scheme.

2. Mandatory E-Way Bill for Scrap Supply Taxpayers in Dadra and Nagar Haveli

In the Union Territory of Dadra and Nagar Haveli, taxpayers dealing in scrap supplies must create an E-Way Bill.

Key Points:

• The regulation applies to all movements of scrapped products.
• Transporters who do not have an E-Way Bill incur fines and may have their goods detained.
• Businesses must comply starting March 1, 2025.

This measure attempts to increase transparency and reduce tax avoidance in the scrap supply business.

Other Important GST Updates:

3. The Deadline for Filing GSTR-3B and GSTR-1 Returns

• GSTR-3B: Taxpayers must file their GSTR-3B for January 2025 by February 20, 2025.
• GSTR-1: The return for external supplies for January 2025 must be filed by February 11, 2025.

4. ITC Restrictions

Rule 36(4) still applies, restricting input tax credit (ITC) claims to invoices uploaded by suppliers.

5. GST Amnesty Scheme (Final Phase Ends Soon)

Taxpayers who have outstanding GST returns or disputes could take advantage of the continuing GST Amnesty Scheme, which provides relief from fines and interest. The final date for the plan is March 31, 2025.

Conclusion

The most recent GST modifications have an emphasis on compliance, digital filing, and better transaction monitoring. To avoid penalties, businesses must remain up to date on the newest alerts, deadlines, and procedure changes.

Stay compliant by filing your GST returns on time and taking use of the Composition Scheme if appropriate.

For any GST-related help, please contact myITRonline for experienced tax guidance.