GST Updates 2025: Everything You Need to Know About New Changes in GST

2024 was a transformative year for the indirect tax system in India, i.e. GST. We witnessed unprecedented reforms in the GST, such as the Amnesty Scheme, the re-introduction of the form GSTR-1A, the implementation of the Invoice Management System (IMS), and the facility to declare negative tax liability. These were the major updates in GST in the year 2024. Similarly, in 2025, we are likely to see more changes intended to simplify the taxation system, lessen the compliance burden, and encourage ease of doing business. 

In this article, we will explore the new changes in GST implemented in 2025 and review the significant updates from the latter part of 2024. 

New Changes in GST in 2025

In this section, we will discuss the recent changes in GST announced in the last leg of 2024 and the beginning of 2025. Here are the details: 

Multi-factor Authentication 

One of the major changes in GST in 2025 is the introduction of multi-factor authentication for accessing the GST portals. 

Following is the timeline for the implementation of MFA: 

• From August 20 2023, MFA is implemented for businesses over ₹ 100 Crores of Annual Aggregate Turnover (AATO).   
• Originally implemented from September 11 2023 for businesses over ₹ 20 Crores of Annual Aggregate Turnover (AATO) but it was introduced as an optional security measure. However, starting January 1 2025 it became mandatory. 
• From February 1 2025 for those businesses with AATO exceeding ₹5 Crores, and from April 1 2025 for all other taxpayers MFA will be mandatory. 

Restrictions in E-Way Bill Generation 

With the implementation of new regulations of e-way bills, documents older than 180 days shall not be qualified for e-way bill generation. In other words, documents dated before July 5 will not qualify for e-way bill in GST starting from January 1, 2025. 

Moreover, the extension of e-way bill in GST is limited to 360 days from the original date of generation. For example, an e-way bill generated on January 1 can be extended only up to December 25 2025. 

Development of AI Tools to Prevent Tax Evasion 

Until now, several measures have been taken to prevent tax evasion and fraudulent Input Tax Credit (ITC). In 2024, new AI tools and technologies will be introduced to cater for the same. The government has ramped up the efforts to prevent fake ITC claims and monitor fake GST registration. With the introduction of advanced data analysis tools, stringent tax evasion and maximum transparency is expected. 

Updates in E-Invoicing Regulation

In 2024’s GST council meeting it was decided that starting April 1, 2025 a new rule could be introduced to mandate that e-invoices must be uploaded to the Invoice Registration Portal (IRP) within 30 days of invoice generation. 

Implementation of Invoice Management System (IMS) 

On October 1, 2024, the Invoice Management System (IMS) was introduced on the GST portal. Under this system, it requires suppliers to either accept, reject or keep the invoices pending and credit notes. If no action is taken, the invoice is considered as accepted. It is noted that, if the recipient accepts the credit note, the corresponding tax amount to be paid will be added to the total tax liability in the given month. 

The IMS system generates form GSTR-2B based on the recipient’s actions, offering essential information to reconcile ITC, compute tax liability and file GST returns accurately. 

With IMS in place, all businesses should streamline the credit note issuance process to prevent rejections because the system is developed in such a way that it directly affects your tax liability. The main aim of IMS is to simplify the process of ITC claims, and the data available from IMS can be used for legal scrutiny. 

Latest GST Notifications: January 2025

• GST Notification 01/2025-Central Tax dated 10-1-2025: Seeks to extend the due date for furnishing FORM GSTR-1 for the month of December 2024 and 
• the quarter of October to December 2024, as the case may be
• GST Notification 02/2025-Central Tax dated 10-1-2025: Seeks to extend the due date for furnishing FORM GSTR-3B for the month of December 2024 and the quarter of October to December 2024, as the case may be
• GST Notification 03/2025-Central Tax dated 10-1-2025: Seeks to extend the due date for furnishing FORM GSTR-5 for the month of December 2024
• GST Notification 04/2025-Central Tax dated 10-1-2025: Seeks to extend the due date for furnishing FORM GSTR-6 for the month of December 2024
• GST Notification 05/2025-Central Tax dated 10-1-2025: Seeks to extend the due date for furnishing FORM GSTR-7 for the month of December 2024
• GST Notification 06/2025-Central Tax dated 10-1-2025: Seeks to extend the due date for furnishing FORM GSTR-8 for the month of December 2024
• GST Notification 07/2025-Central Tax dated 23–1-2025: Central Tax Notification to amend CGST Rules, Central Goods and Services Tax (Amendment) Rules, 2025
• GST Notification 08/2025-Central Tax dated 23–1-2025:Central Tax Notification for waiver of the late fee

(Source)

Over to You 

We hope that after reading this blog, you will get to know everything about the new changes in GST in 2025. We endeavour to provide you with fast, accurate and insightful information on the latest GST updates because we understand that it is important for your organisation to stay GST-compliant. 

If you are looking for GST return filing software for your business, then subscribe to Munim Return Filing software. For more information, you can reach out to our sales team. 

FAQs on GST Changes in 2025 

1. What are the changes in GSTR-1 in 2025? 

Starting from January 2025, it is mandatory for taxpayers to report at least 4 digits or digits of HSN Code in table-12 of GSTR-1 based on your Aggregate Annual Turnover (AATO) in the previous financial year. 

2. What are the new changes in GST? 

Following are the GST changes that happened recently: 

• Introduction of GSTR-1A
• Amnesty Scheme 
• Implementation of Invoice Management System (IMS)
• Multi-factor Authentication 
• New rules in e-invoicing 
• New rules in e-way bill generation

3. What are the new rules for e-way bill generation? 

Some restrictions are applied on e-way bill generation, which are as follows: 

1. The document should not be older than 180 days from January 1, 2025
2. The extension period of EWBs is restricted to 360 days from the original generation date. 

4. What is the latest scheme of GST?

The GST Amnesty Scheme 2024, came into force on November 1, 2024 offers an opportunity to taxpayers to pay the GST dues without incurring any penalties and interest. 

5. What is the 99% ITC rule in GST?

Rule 86B of the Central Goods and Services Tax (CGST) Rules, also known as the 99% ITC Rule. Under this rule, businesses are allowed a maximum of 99% of their Input Tax Credit (ITC) available in the electronic ledger to offset their tax liability, the remaining tax amount must be paid in cash.