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Aditya Narayan

Aditya Narayan enjoys decoding tax laws and keeping an eye on what is happening in India's startup ecosystem. He has written over 400 blogs and simplifying complex subjects across income tax, personal finance, governance, and business growth. His interests also bring together finance and creativity - whether that is writing poems, short stories, or looking at the intersect between art, culture, and economics.

Understanding the GST Appellate Tribunal Procedure Rules, 2025

Posted on: by: Aditya Narayanin: Indirect TaxLeave a reply

Understanding the GST Appellate Tribunal Procedure Rules, 2025

On 24 April 2025, the Government of India in the Ministry of Finance made a significant move to simplify disputes related to taxation under the Goods and Services Tax (GST). They issued the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025, via a notification named G.S.R. 256(E). These rules are in the nature of an instruction manual for the functioning of the GST Appellate Tribunal (GSTAT). The GSTAT is a unique authority that deals with appeals if a person is not satisfied with a decision made under GST. Let’s decode what these regulations mean in plain terms, why they are important, and how they will benefit businesses and taxpayers.

What is the GST Appellate Tribunal (GSTAT)?

The GSTAT is a kind of court that hears GST disputes. In case a taxpayer or business is dissatisfied with a ruling given by a GST officer or the First Appellate Authority (yet another level of appeal), they can appeal their case to the GSTAT. It’s the second appellate level under GST law and was instituted to ensure tax disputes are resolved justly and speedily. The GSTAT has a central office (referred to as the National Bench) in New Delhi and various state benches throughout India to facilitate easy access to people.

Prior to these regulations, the GSTAT was present but lacked precise guidelines on how it was supposed to function. The new regulations, which were notified under Section 111 of the Central Goods and Services Tax (CGST) Act, 2017, give a clear direction on how the tribunal will proceed with cases.

Key Features of the GST Appellate Tribunal Procedure Rules, 2025

The rules are divided into 15 chapters and cover everything from filing an appeal to how hearings happen. Here are the main points in simple terms:

1. Online Filing is a Must

  • All appeals and documents must be filed online through the GSTAT Portal, a web-based platform.
  • You must file such forms as GST APL-05 for appeals, together with a certified copy of the order being appealed against.
  • This online method eliminates paperwork, saves time, and organizes the process better.

2. Hybrid Hearings for Flexibility

  • Hearings may take place in person or remotely, as the Tribunal President may permit.
  • This is great for people in far-off places who don’t have to travel to attend a hearing.
  • The hearings are public by default, which keeps the process transparent.

3. Clear Timelines and Fees

  • You must lodge appeals within a specified timeframe (normally three months from when the decision has been made).
  • There is a filing fee for an appeal: ₹1,000 per ₹1 lakh of tax, penalty, or input tax credit in question, up to ₹25,000 and a minimum of ₹5,000.
  • Emergency appeals submitted by noon can be scheduled for hearing the following working day, allowing prompt action for urgent cases.

4. How the Tribunal Works

  • The tribunal sits from 10:30 AM to 1:30 PM and 2:30 PM to 4:30 PM on working days. The administration office is from 9:30 AM to 6:00 PM.
  • The Registrar (an important officer) oversees cases, screens appeals, and maintains records in order.
  • The tribunal may issue summonses, request documents, or take testimony, as in a civil court.

5. Language and Documents

  • All documents and appeals have to be in English. If they are written in another language, you have to submit an English translation signed by an authorized representative.
  • Documents like the order you’re appealing, grounds of appeal, and supporting facts must be submitted in a specific format.

6. Ex-Parte Hearings

  • If either party fails to appear for a hearing, the tribunal may nevertheless proceed to deliver a decision. This is referred to as an ex-parte hearing.
  • This makes sure cases don’t pile up if an individual is absent.

7. Authorized Representatives

  • You can employ attorneys, chartered accountants, or any other tax professional to represent you. They must file a power of attorney or a form such as GSTAT FORM-04.
  • There’s even a dress code for delegates, with occasional exemptions for various seasons.

8. Record-Keeping and Transparency

  • The tribunal maintains detailed records, such as cause lists (schedules of cases), court diaries, and appeal status, in registers such as GSTAT-CDR-01 to GSTAT-CDR-08.
  • Final orders are signed electronically and placed on the GSTAT Portal to be accessed by all.

Why These Rules Matter

The GST Appellate Tribunal Procedure Rules, 2025, are a game-changer for several reasons:

  • Digital Efficiency: E-filing and hybrid hearings being made compulsory render the process accessible and up-to-date, particularly for SMEs or individuals in out-of-the-way places.
  • Transparency: Public hearings, transparent procedures, and online accessibility of orders guarantee the process is equitable and transparent.
  • Ease of Doing Business: By expediting and handling disputes more efficiently, the GSTAT allows business to concentrate on expansion rather than being bogged down by lawsuits.
  • Uniformity Across India: Having benches in various states and a National Bench at New Delhi, the GSTAT makes sure that GST laws are enforced uniformly in the entire country.

How Will This Help Taxpayers and Businesses?

Suppose you are a small businessperson who received a GST notice you believe is unjust. You appeal to the First Appellate Authority, but you’re not happy with their ruling either. Now, you can approach the GSTAT. Here’s how the new rules simplify things for you:

  • You are able to submit your appeal anywhere, without having to come into an office.
  • If you’re remote from a bench in a tribunal, you may have a hearing online.
  • The clear timelines ensure your case won’t go on forever.
  • The tribunal’s authority, such as calling witnesses or examining evidence, guarantees your case is being heard justly.

Challenges to Watch Out For

While the rules are a big step forward, there could be some hiccups:

  • Learning Curve: Professionals and taxpayers will take some time to be familiar with the GSTAT Portal and the new forms.
  • Technical Problems: Any technical faults in the web portal may result in delays.
  • Compliance: Companies need to have all documents in English and in the required formats, which could be challenging for others.

What’s Next?

The GSTAT is already functional, with its first President, (Retd) Sanjaya Kumar Mishra, being appointed in May 2024. The portal is live, and a few appeals have already been made. Taxpayers, consultants, and GST officers should begin to learn about the new rules to make compliance smoother. The government may also come out with additional guidelines or updates to make the process even smoother.

Conclusion

The GST Appellate Tribunal Procedure Rules, 2025, are a step in the right direction to simplify, expedite, and make GST disputes fairer. By becoming digital, having clear procedures, and providing flexibility, these rules reflect India’s intent to enhance its tax system and aid businesses. As a taxpayer, business owner, or tax professional, these rules are going to make your life easier when it comes to GST disputes.
For further details, you may refer to the official notice on the website of the Ministry of Finance or GSTAT Portal.

Section 80C: Best Investment Options to Save Tax

Section 80C: Best Investment Options to Save Tax

Posted on: by: Aditya Narayanin: Direct TaxLeave a reply

Section 80C: Best Investment Options to Save Tax

Section 80C of the Income Tax Act, 1961 is that one section most popularly being used by individual taxpayers and Hindu Undivided Families (HUFs) to claim tax savings. Up to ₹ 1.5 lakh can be deducted from one individual’s total income during a year to reduce a taxable liability. If you understand and utilize the investment options available under Section 80C correctly, you will be able to save as well as add wealth over the longer term.

Top Investment Options Eligible Under Section 80C

Here is a comprehensive list of the most popular and beneficial instruments that qualify for deduction under Section 80C:

1.Life Insurance Premiums

This affords the deduction for premiums paid for life insurance policies for one’s own life as well as those of the spouse and children. The policy should be in the name of oneself or any of the family members, and the premium amount should not exceed 10% of the sum assured in case of policies availed after April 1, 2012. For the policies issued before April 1, 2012 premium amount should not exceed 20% of sum assured.

2.Public Provident Fund (PPF)

A government-backed, long-term savings scheme with an interest rate that is fully tax-free. PPF has a 15-year lock-in period and offers safety and decent returns, making it ideal for conservative investors.

3.Employees’ Provident Fund (EPF)

It’s an obligatory saving for salaried persons, where both employee and employer co-contribute. The employee’s share is deductible under Section 80C, and there’s a tax exemption on the aggregated amount on maturity (given that some conditions are satisfied).

4.Equity-Linked Savings Scheme (ELSS)

ELSS are mutual fund schemes with a lock-in period of 3 years—the shortest among 80C options. These have the potential to offer higher returns as they invest in equities, though they carry market risk.

5.Unit Linked Insurance Plan (ULIP)

ULIPs offer the dual advantage of insurance and market-linked returns. The premiums qualify for deduction, and the maturity proceeds are tax-free under certain conditions.

6.Tax Saver Fixed Deposits

Fixed deposits with a lock-in of 5 years offered by banks and post offices are eligible for deduction under Section 80C. The interest earned is taxable, but the principal qualifies for the deduction.

7.National Pension Scheme (NPS)

Contributions up to ₹1.5 lakh fall under Section 80CCD(1), which is part of Section 80C. An additional deduction of ₹50,000 is allowed under Section 80CCD(1B), making NPS a powerful tax-saving tool for retirement planning.

8.Home Loan Principal Repayment

Repayment of the principal component of a home loan qualifies for deduction under Section 80C, provided the property is not sold within 5 years of possession.

9. Sukanya Samriddhi Yojana (SSY)

Aimed at securing the future of girl children, SSY offers attractive interest rates and tax-free returns. The investment, interest earned, and maturity amount are all exempt from tax.

10.National Savings Certificate (NSC)

Offered by post offices,NSC is a low-risk investment with a lock-in of 5 years. The interest earned annually is taxable, but it is also eligible for a deduction under Section 80C in the year it is reinvested.

11. Tuition Fees

Tuition fees paid to any university, college, school, or other educational institutions in India for the full-time education of up to two children are deductible under Section 80C.

12. Senior Citizens Savings Scheme (SCSS)

An excellent fixed-income option for individuals above 60 years. It offers regular income, safety, and tax-saving benefits under Section 80C.

Important Subsections Under Section 80C

  • Section 80CCC: Deductions for contributions to annuity pension plans.
  • Section 80CCD(1): Employee contributions to the NPS (up to 10% of salary).
  • Section 80CCD(1B): Additional deduction up to ₹50,000 for self-contribution to NPS.
  • Section 80CCD(2): Employer contributions to NPS, over and above the 80C limit.

Eligibility Criteria for Claiming Section 80C Deductions

  • Must be an individual taxpayer or HUF.
  • Investments must be made in specified instruments under the section.
  • Deductions are available only for investments/payments made within the financial year (April 1 to March 31).
  • Total deduction allowed under Section 80C, 80CCC, and 80CCD(1) combined is ₹1.5 lakh.

How to Maximize Tax Saving Under Section 80C?

  • Mix Safety and Returns
    Combine stable options like PPF and NSC with high-return instruments like ELSS.
  • Start Early
    Investing early in the financial year helps avoid last-minute decisions and allows investments to compound effectively.
  • Utilize Full Limit
    Make sure to utilize the full ₹1.5 lakh limit to optimize tax savings. Consider including tuition fees or insurance premiums already paid.
  • Align Investments with Goals
    Instead of investing randomly to save taxes, align 80C investments with your long-term goals like retirement, children’s education, or wealth creation.

Conclusion

For tax planning purposes, it is understandable that Section 80C of Income Tax needs to be researched. Investment avenues range from market-linked ELSS to safe investments like PPF and NSC, thereby catering to all risk levels and financial aspirations. Systematic investments in eligible instruments offer both Section 80C tax benefits and a viable way to protect the financial future.

GST on UPI Payments: What You Need to Know in 2025

GST on UPI Payments: What You Need to Know in 2025

Posted on: by: Aditya Narayanin: Indirect TaxLeave a reply

GST on UPI Payments: What You Need to Know in 2025

Goods and Services Tax (GST) is an all-encompassing indirect tax paid on supply of goods and services in India and is governed by the GST Council. UPI, launched by the National Payments Corporation of India (NPCI), facilitates instant inter-bank transfers through mobile apps such as PhonePe, Google Pay, and Paytm. Since UPI dominates—covering more than 80% of India’s retail digital payment space with 16.73 billion transactions in December 2024—the question of GST on UPI payments needs to be clear for consumers as well as businesses.

As of April 2025, GST on UPI payments does not directly apply to individual users for personal transactions. Nevertheless, some situations involving merchants, payment aggregators, and businesses invoke GST obligations, which indirectly influence pricing or compliance. Let’s dissect it.

Does GST Apply to UPI Payments?

For small users, UPI payments like peer-to-peer (P2P) payments (for instance, remittance to a friend) or peer-to-merchant (P2M) payment (like settlement of shop via UPI QR code) do not incur GST. It has been explained in 2022 by the Ministry of Finance that UPI facilities are regarded as a “digital public good” and GST on the transaction per se is not charged for use by an individual. What that implies is, if you give ₹500 to purchase groceries using UPI, you won’t be charged another GST on the transaction value beyond the amount which has already been charged as a part of product cost.

Although individual users are not impacted by GST on UPI transactions, merchants suffer from compliance issues:

  • Merchants and Businesses:

Though GST on payments done using UPI applies under certain conditions.

Companies that receive UPI payments for goods or services have to account for GST on the sale itself, not on the mode of payment. For instance, a restaurant that charges ₹1,000 (including 5% GST) through UPI pays the GST component to the government irrespective of the mode of payment.

If the annual turnover of a business is more than the GST limit (₹40 lakh for goods or ₹20 lakh for services in most states), it is required to register for GST. UPI transactions form part of this turnover, and high-volume businesses, such as street vendors crossing ₹40 lakh through platforms like PhonePe, have been served GST notices for non-compliance.

  • Payment Aggregators:

Payment aggregators (such as Razorpay, BillDesk) enable UPI payments to merchants, typically levying a service charge (0.5% to 2% per transaction). In September 2024, the GST Council debated charging an 18% GST on such charges for transactions less than ₹2,000, but no decision was taken. To date, such charges are GST-free on low-value transactions, although aggregators can potentially recover any future tax from merchants, adding costs.

  • Prepaid Payment Instruments (PPIs):

UPI payments through digital wallets (such as Paytm Wallet) might have an interchange fee for the merchant, which may be chargeable of GST if the wallet company is considered a service provider. But customers pay no direct GST on such transactions.

Recent Developments in GST on UPI Payments

The GST Council’s 54th meeting  generated buzz around taxing payment aggregator fees, which created confusion regarding GST on UPI transactions. Social media rumors went around an 18% GST on transactions over ₹2,000, but these were proved to be false. The Finance Ministry and NPCI have always clarified that UPI transactions are free for individual users with no GST or Merchant Discount Rate (MDR) charged.

One significant development is the GST authorities’ intensified scrutiny of UPI transactions. For example, in January 2025, news mentioned small traders, such as pani puri vendors, receiving GST notices after their UPI transactions crossed ₹40 lakh in a year. This is indicative of how digital payments trace transactions, drawing informal businesses into the tax net.

Also, from January 2024, taxpayers have been able to remit GST dues through UPI on the GST portal (www.gst.gov.in), making it more convenient. This facility, introduced initially in 10 states, is now being rolled out across the country, marking the government’s digital compliance drive.

Impact of GST on UPI Payments

Although individual users are not impacted by GST on UPI transactions, merchants suffer from compliance issues:

  • Higher Expenses: If payment aggregator fees attract GST, merchants would incur greater transaction expenses, particularly for small-value transactions. For instance, a 1% charge on a ₹1,000 transaction (₹10) would increase to ₹11.80 with 18% GST, hurting small enterprises with thin profit margins.
  • Compliance Burden: Companies need to keep proper records of UPI transactions to determine GST liability and file returns. Solutions such as cloud-based accounting software (e.g., LEDGERS) assist in simplifying this process.
  • Price Adjustments: Merchants may transfer extra costs to consumers, effectively increasing prices for goods or services paid through UPI.

For customers, the price paid under GST is still the main issue, not how payment is made. For example, an ₹500 shopping bill under UPI already comprises payable GST (say, 5% or 18%), and no additional tax is charged for the UPI payment.

How to Stay Compliant with GST on UPI Payments

For merchants and businesses using UPI transactions, the following are tips that work to meet GST regulations:

Track Turnover: Keep tabs on UPI transactions to make sure your turnover does not exceed the GST limit without registration. Utilize transaction logs of payment apps for accurate records.

Register for GST: If your turnover is more than ₹40 lakh (goods) or ₹20 lakh (services) in a year, register early to escape penalties. Services like Growthinfy can help with compliance.

Utilize Technology: Employ accounting software with UPI platforms to make GST calculations and filings automatic, minimizing errors.

Stay Informed: Keep track of GST Council notifications, as policies regarding payment aggregator fees can change, affecting UPI transaction charges.

For individual users, no action is needed, as GST on UPI payments doesn’t apply to personal transactions. However, be mindful of income tax rules—UPI receipts exceeding ₹50,000 annually from non-relatives may be taxable as “income from other sources.”

The Future of GST on UPI Payments

The GST Council keeps  a balance between growth in digital payment  and tax compliance. While UPI is still a zero-cost platform for consumers,  future government policies could decide to take service  charges for increase in revenue  particularly when the digital transactions are increasing. The government’s Digital India campaign supports UPI, and any change in GST will most likely ensure small businesses will not be affected much.

Speculation regarding GST on UPI transactions over ₹2,000 continues on platforms such as X, yet no serious policy confirms this as of April 2025. 

 

Key Changes effective in GST from 1st April, 2025

Key Changes effective from 1st April, 2025 in GST

Posted on: by: Aditya Narayanin: Indirect TaxLeave a reply

Key Changes effective from 1st April, 2025 in GST

1.Compulsory Input Tax Distributor Registration (ISD)

Organisation have multistate GST Registration under a single PAN could either use the Input Service Distributor (ISD) mechanism or adopt a Cross Charge approach to distribute common input like audit fees, software licenses, banking services, consultancy services etc consumed across multiple locations. Before 1st April 2025 many opted for cross-charge due to its operational simplicity.

However, from 1st April 2025 onwards Indian government has made mandatory ISD registration such taxpayers. Under this model, businesses must issue ISD invoices and file GSTR-06 to distribute Input Tax Credit (ITC) across branches, ensuring better traceability and standardised reporting.

2.Changes the rate of hotels

Effective 1 April 2025, hotels classified as ‘specified premises’ began implementing an 18% Goods and Services Tax (GST) on meals served by their in-house restaurants. This change marks a shift from the previous 5% GST rate and is applicable to hotels offering accommodation services with room rates exceeding Rs 7,500 per day.
However, hotels not classified as ‘specified premises’ have the choice to continue with the 5% GST or switch to the 18% rate, as per directives from the government.

3.Mandatory Multi- Factor Authentication (MFA)

National Informatics Centre (NIC) has implemented the two-factor authentication on its portals such as the e-invoicing portals, NIC1 and NIC2, and e-way bill portal for certain taxpayers. Currently, the 2FA applies to taxpayers using these portals, as follows-

4.New E-Invoice generation rule:

From April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of above Rs.10 crore must upload e-invoices to the Invoice Registration Portal (IRP) within 30 days.

Top Startup Trends to Watch in 2025

Top Startup Trends to Watch in 2025

Posted on: by: Aditya Narayanin: Startup Updates2 Comments

Top Startup Trends to Watch in 2025

The startup ecosystem is one of the most dynamic scenarios in the year 2025. So fast is the pace of innovation that today startups are not merely solving problems but are also changing industries. Such transformation is provoked by rapid technological advancement, shifts in consumer demand, and an increasing global marketplace.

For founders, investors, and professionals alike, keeping ahead is no longer an option; it is critical. Knowing where the next wave of innovation will emerge can spell the difference for launching the next unicorn or for making investments that guarantee long-term growth. Now let us look into the top startup trends shaping the future in 2025.

 

1. AI-Powered Everything

Artificial intelligence has traveled through a transition from buzzword to a business necessity. In 2025, startups are embedding AI in every other aspect of their work-from automating customer support to content creation reformation.

  • AI in SaaS: Software as a Service platforms are getting smarter, providing AI-based analytics and real-time decision-making tools.
  • AI Co-Pilots: New tools that work as digital co-pilots for marketing, HR, law, and finance departments increase operational efficiency while minimizing human error.
  • Example: Startups like LegalMind with AI-driven legal document drafting, while others like HyperReach tap the medium to run AI-based hyper-personalized campaigns.

2. Climate Tech & Sustainability Startups

Today, in this focus of discussion around climate change, the green start-ups would prove very effective and influential change agents. Investors, in fact, are increasingly investing major funds into sustainable and climate-smart solutions.

  • Core Focus Areas – Renewable energy, electric vehicle (EV) infrastructure, carbon capture technologies, and sustainable packaging are fast-expanding sectors. They have many chances to make money.
  • Examples: Indian startups like ZunRoof on solar energy and Ecoware on biodegradable products are eco-innovation leaders.

3. HealthTech & Wellness 2.0

The health sector is being digitized. Increased awareness about mental health and preventive care has led startups to develop customized tech-led solutions.

  • Emerging themes : It include wearables, AI diagnostics, telemedicine, and biohacking.
  • Examples : Platforms like CureAI that use AI diagnostic tools or MindTree Health that provides subscriptions to mental wellness programs.

4. FinTech Evolution: Beyond Digital Payments

FinTech has moved from merely payments and wallets into holistic financial ecosystems that go beyond. It begins with start-ups that meet deeper needs such as financial literacy, investing, and insurance.

  • Key Trends: Emergence of neo-banking, embedded finance solutions, and wealth management aided through an artificial intelligence engine.
  • Examples: KisanPay is a startup focusing on rural areas of India with micro loans and investment platforms designed specifically for users in Bharat.

5. EdTech Pivot to SkillTech & Career Platforms

EdTech is going from a conventional coaching model to learning through a practical skill-building dimension. More solemnly, courses are now looking to being employable, to being entrepreneurial, and ultimately considering alternative career paths.

  • Highlights: Demand for gamified platforms, AI mentors, and career mapping tools.
  • Examples: Startups such as SkillYatra provide courses in GST, personal finance, and startup management mostly for aspirants and professionals in Tier-2 and Tier-3 cities.

6.Creator Economy & Micro-Entrepreneurship

Solo economy is reconfiguring the way people earn and spend time online. It is converting the creators, teachers, and narrow-cast marketers into independent entrepreneurs with their own personal brands.

  • Toolkits for Success: Subscription platforms, digital storefronts, and community-building toolkits are facilitating unprecedented empowerment for self-actualization in individuals.
  •  Example: Ko-fi India or CreatorKart platforms open up a room for creators in earning through content, making courses, or managing paid communities.

7.Web3 & Decentralized Applications

Just now, the blasts of noise around cryptocurrencies have receded to the greater issue at hand- the real utility. The new avenues for development are routed towards decentralized apps built to solve real-world problems. Among these innovations are Decentralized identity systems, peer-to-peer finance platforms, and blockchain voting and funding models.
Some other examples are DeWork, which offers decentralized job marketplaces, and FundCircle, which offers community-led fundraising.

These new-age startups and innovations really offer a lot- decentralized identity systems, peer-to-peer finance platforms, as well as blockchain voting and funding models.

8. AI in Local Languages & Bharat-focused Innovation

The next wave of digital transformation of India will be one that is written in Hindi, Tamil, Bengali, etc. Startups work on solving for vernacular users and building platforms that are hyper-local.

  • Use Cases: The likes of search by voice in regional languages, AI-based translation engines, or content platforms for Tier-2 and Tier-3 cities offer tremendous potential.
  • Examples: VaniAI makes possible voice time transactions, whereas BazaarGhar promotes regional e-commerce in local languages.

9. Remote Work, Collaboration & WorkTech Tools

The world of work has changed altogether now, and permanent hybrid and remote-first models are being adopted, redefining input and contributions of startups.

Startup Focus Areas include Workplace virtualisation, async communication tools, and Mental wellness for distributed teams.

  • Examples: Like collabx, WorkZen is a platform taking the initiative of connecting teams, tracking productivity, and controlling the gig economy workforce.

10. Government & RegTech Startups

  • It is now made easy by so many start-ups that have come up to simplify governance. One of the fast-growing segments is RegTech, specifically in a country where the compliance system is complex like India.
    Potential Growth Areas: Platforms focused on automating GST filing, subsidy tracking, and legal compliance specifically for MSMEs.
  • Examples: Startups like TaxGenie and GovEase assist citizens and businesses in accessing schemes and keeping themselves compliant with minimum effort.

Conclusion

These ten trends somewhat illuminate how startups are innovating for the future, be it AI working through the revolution, climate tech saving the planet, or the trust ecosystem being revamped with Web3-all the while dotting the horizon with promise and hope in 2025.

These trends make for an interesting gateway for entrepreneurs and investors into some of the next great opportunities. The future belongs more to the observer, the adaptable, and the daring. If you have ever thought of setting forth with a serious venture, this is the time more than ever.

 

GST Act 2017

GST ACT 2017

Posted on: by: Aditya Narayanin: Indirect Tax1 Comment

GST Act 2017: Revolutionizing Indirect Taxation in India

The GST Act of 2017 introduced a behemoth change to India’s financial environment by overhaul-ing the system of indirect taxes. It has come to be referred to as the Goods and Services Tax Act. The legislation substituted a large number of center and state levies with something more transparent, less complicated to comply with, and a harmonized market. In this article, we’ll dive deep into the journey, structure, and the significant impact the Goods and Services Tax Act has had on India’s economy, particularly focusing on the goods and services tax act and its impact on GDP.

What is the GST Act 2017?

The GST Act 2017, formally known as the Goods and Services Tax Act, came into force on July 1, 2017. It unified the nation with a single, unified tax regime, replacing prominent indirect taxes such as VAT, excise duty, service tax, and others.
Tax is charged at each level of the supply chain under the GST regime, with credit of taxes paid at the preceding stage available as a set-off. This “one nation, one tax” strategy was designed to do away with the cascading effect of taxes and develop a common national market.

Key Features of GST Act 2017:

Dual structure: Central GST (CGST) and State GST (SGST) for intrastate transactions; Integrated GST (IGST) for inter-state transactions.

  • Four-tier tax rate structure: 5%, 12%, 18%, and 28%.
  • Uniformity in tax laws across states and union territories.
  • Threshold exemptions for small businesses.
  • Online tax filing and compliance system.
  • Revolutionizing Indirect Taxation in India

Prior to the GST Act 2017, the taxation structure of India was dispersed, and several overlapping taxes were imposed by various authorities. Various taxes created tax complexities for businesses, which resulted in inefficiency, compliance, and hidden costs.

How GST Transformed Indirect Taxation:

  • Simplification: GST substituted more than 17 taxes and 23 cesses with a simplified tax system.
  • Transparency: Input tax credit mechanism made the process transparent.
  • Ease of Doing Business: Companies now submit a single return rather than several tax filings.
  • Reduced Tax Burden: Consumers gained from a decrease in overall tax rates on goods and services.

By promoting a transparent and efficient tax system, the Goods and Services Tax Act provided a more business-friendly environment for growth and investment.

Goods and Services Tax Act and Its Impact on GDP

One of the most discussed areas of GST has been the goods and services tax act and GDP impact. The long-term positive effects of GST are deep, although the initial few years had transitional problems.

Positive Impacts on India’s GDP:

  • Trade Boost: Deletion of state borders and checkpoints lowered cost of logistics and delivery time, having a direct influence on trade efficiency.
  • Increase in Revenue Collection: An expanded tax base and improved compliance resulted in increased government revenues, allowing more public expenditure.
  • Formalization of Economy: GST compelled companies, particularly from the MSME sector, towards formalization, enhancing their access to credit as well as government incentives.
  • Attracting Investments: A simplified tax regime made India a more desirable destination for foreign direct investments (FDI).
Empirical Evidence

Studies by bodies such as the World Bank and IMF indicate that GST would give a boost to India’s GDP by 1-2% in the medium to long term due to increased efficiency and productivity.

Challenges and the Way Forward

While the GST Act 2017 provided tremendous benefits, it had also encountered some early teething problems:

  • Technical snags on the GST Network (GSTN) portal.
  • Complexity of various tax rates and classification of goods/services.
  • Transitional agony for small and medium-sized businesses in changing over to the new system.

Frequent changes in the act and rules leads to uncertainty and increases compliance burden for small business .Yet, through ongoing reforms like the launch of e-invoicing, harmonization of tax rates, and streamlined return filing mechanisms, GST is headed for a stronger and more business-friendly format.

Conclusion

The GST Act 2017 has truly transformed India’s system of indirect taxation, with transparency, uniformity, and efficiency. The economy adjusting and changing, the potential of the Goods and Services Tax Act in enhancing India’s GDP will be all the more real. For individuals and businesses both, it is vital to learn about the goods and services tax act and how it affects GDP to ride the new taxation system successfully.

how to create monthly budget

How to Create a Monthly Budget

Posted on: by: Aditya Narayanin: Personal FinanceLeave a reply

 

How to Create a Monthly Budget: A Step-by-Step Guide

Handling money can be , but tough task but knowing how to budget each month is a lifesaver. It’s like providing yourself with a money map—one that makes it easy to save more money, eliminate debt, or just spend with certainty. Whatever your budgeting situation is, whether starting for the first time or improving on it, a carefully done monthly budget is the key to money success. Here in this guide, we will guide you through a straightforward, practical step-by-step process to make a budget that suits your lifestyle and keeps you on track.

Why a Monthly Budget Matters ?

Before we get into the “how,” let’s discuss the “why.” A monthly budget isn’t a list of figures—it’s a tool that gives you clarity and control over your finances. Here’s what it does for you:

  • Tracks Your Money: Have you ever wondered where your paycheck goes? A budget tells you exactly where each rupee is spent.
  • Prioritizes Essentials: It makes sure your rent, groceries, and bills are paid before you splurge on extras.
  • Increases Savings: Saving becomes second nature when you save for it.
  • Avoids Overspending: End impulse purchases that result in debt.
  • Creates Stability: Eventually, a budget paves the way for long-term financial stability.

Imagine it’s your own financial assistant—one that assists you in matching your expenditures with your ambitions. Ready to begin? Follow these three clear, actionable steps to create a monthly budget.

Step 1: Define Your Financial Goals

  • A budget without a purpose is merely a spreadsheet—it’s your goals that make it meaningful. Take a minute to consider what you want your money to do for you. Are you:
  • Saving ₹10,000 a month for a dream holiday?
  • Paying off a pesky credit card debt?
  • Creating an emergency fund for peace of mind?
  • Investing for the future, such as a child’s education or retirement?

Be specific. Rather than “save money,” try “save ₹5,000 by June for a new laptop.” These goals will determine how you spend your income in the next step. Write them down and leave them out where you can see them—they’re your incentive to stay on track.

Step 2: Make Your Day-To-Day Spending Plan

Now it’s time to make your income do some work.

Split it into three categories according to your needs, wants, and objectives. A common place to start is the 50/30/20 rule:

  • 50% for Needs: Necessities such as rent, food, utilities, and transport. These keep things going.
  • 30% for Wants: Enjoyables such as going out, hobbies, or that brand new shoe. This makes your budget fun.
  • 20% for Savings and Debt: Money for your goals—whether it’s savings, investments, or extra payments on loans.

Example: If your monthly income is ₹50,000:

Needs: ₹25,000
Wants: ₹15,000
Savings/Debt: ₹10,000

Customize It: The 50/30/20 split is flexible. If rent takes 60% of your income, adjust by cutting wants or increasing savings later. Assign every rupee a job—leaving money unallocated often leads to overspending. Use a table or app to map it out clearly.

Step 3: Monitor and Make Adjustments on a Regular Basis

A budget is not a “set it and forget it” situation—it’s a living document that requires attention. Monitor weekly to determine how you’re doing. Did you spend too much on groceries? Not enough on entertainment? Make adjustments accordingly.

Tools to Use: Mint, YNAB (You Need A Budget), or even an Excel spreadsheet can be used to automate tracking.

Monthly Review: At the end of the month, check your plan against reality. Did you meet your savings target? Did unexpected expenses arise? Adjust your categories for the next month.

Stay Balanced: If you splurged in one category (e.g., a wedding), cut elsewhere (perhaps miss eating out).

The trick is consistency. Minor adjustments keep your budget manageable, even when life throws curveballs.

Pro Tips for Sticking to Your Budget

  • Automate Savings: Set up a standing instruction to transfer money to a savings account right after payday. Out of sight, out of mind.
  • Leverage Technology: Budgeting apps send alerts when you’re nearing limits—perfect for staying on track.
  • Start Small: If you’re new to budgeting, don’t aim to save half your income right away. Ease into it with achievable targets.
  • Reward Yourself: Build in small treats (like a movie night) to avoid feeling deprived.
  • Stay Flexible: Job changes, emergencies, or celebrations happen—adapt your budget without guilt.

Common Mistakes to Avoid

Even the best budgets can stumble if you’re not careful. Watch out for these traps:

  • Underestimating Expenses: That ₹200 snack habit adds up. Round up costs to give yourself a buffer.
  • Forgetting Irregular Costs: A car insurance renewal shouldn’t be a surprise to you—prepare for it every month by putting aside a bit each time.
  • Setting Unrealistic Limits: Zero entertainment may be doable for a week, but not as a permanent lifestyle. Be realistic.
  • Skipping Tracking: A budget without accountability is merely a wish list. Review regularly to hold yourself accountable.

Final Thoughts

Learning to make a monthly budget is like learning to navigate your financial vessel. It’s a practice, but after a while, you’ll feel in control—not limited. Begin with these five steps, keep it simple, and be consistent. Each rupee you save today, each debt you whittle away, brings you one step closer to your dreams—whether that’s a worry-free life, a big-ticket purchase, or a secure future. Your budget is more than numbers; it’s the blueprint to making your financial dreams a reality. So, pick up your pen (or phone) and begin today—your wallet will be glad tomorrow.
If you have made it this far then you should be rewarded with bonus tip. Remember, Wealth does not comes from saving expenses, it comes from expanding income streams through skills and business. Budgeting will help in short term but for longer horizons focus on increasing your earning potential.

 

income tax slab rate

Income Tax Slab India: Comprehensive Guide for FY 2025-26 (AY 2026-27)

Posted on: by: Aditya Narayanin: Direct Tax4 Comments

Income Tax Slab India: Comprehensive Guide for FY 2025-26 (AY 2026-27)

Understanding the Income Tax Slab is essential for effective tax planning and compliance. The Government of India has introduced notable changes to the Income Tax Slabs for FY 2025-26 (AY 2026-27) to simplify the system and increase taxpayer benefits. This guide provides an in-depth look at the revised tax slabs, compares the old and new regimes, and offers guidance to help you choose the most suitable tax structure.

Understanding Income Tax Slabs

India follows a progressive tax structure where tax rates increase with higher income levels. Taxpayers can choose between:

  • Old Tax Regime: Offers multiple exemptions and deductions.
  • New Tax Regime (Section 115BAC): Features lower tax rates but limited exemptions.

New Income Tax Slab for FY 2025-26 (AY 2026-27)

The revised slab rates under the new regime are as follows:

Annual Income (₹)Tax Rate
Up to ₹4,00,000Nil
₹4,00,001 – ₹8,00,0005%
₹8,00,001 – ₹12,00,00010%
₹12,00,001 – ₹16,00,00015%
₹16,00,001 – ₹20,00,00020%
₹20,00,001 – ₹24,00,00025%
Above ₹24,00,00030%

These new slabs are designed to reduce the tax burden for middle-income earners and boost disposable income, encouraging economic growth.

Old Income Tax Slab for FY 2025-26 (AY 2026-27)

Slabs under the old tax regime remain unchanged:

Annual Income (₹)Tax Rate
Up to ₹2,50,000Nil
₹2,50,001 – ₹5,00,0005%
₹5,00,001 – ₹10,00,00020%
Above ₹10,00,00030%

The old regime allows various deductions and exemptions, including those under Sections 80C, 80D, and HRA.

Major Changes and Advantages in the New Tax Regime

  • Increased Basic Exemption Limit: Raised from ₹3 lakh to ₹4 lakh, offering relief to lower-income groups.
  • Revised Tax Slabs: Additional slabs with lower rates reduce the overall tax liability.
  • Default Regime: The new regime is the default, though taxpayers can opt for the old regime when filing returns.

Comparative Analysis: Old vs. New Tax Regime

CriteriaOld Tax RegimeNew Tax Regime
Basic Exemption Limit₹2,50,000₹4,00,000
Tax RatesHigher rates, fewer slabsLower rates, more slabs
Deductions & ExemptionsAvailable (e.g., 80C, 80D, HRA)Mostly not available
SimplicityMore complex due to multiple exemptionsSimplified with fewer exemptions
Best Suited ForIndividuals with significant deductionsIndividuals with fewer or no deductions

Deductions Available Under Each Regime

Deduction TypeOld RegimeNew Regime
Standard Deduction (Salaried/Pensioners)₹75,000₹75,000
Section 80C (LIC, PPF, ELSS)Up to ₹1.5 lakhNot allowed
Section 80D (Health Insurance)AllowedNot allowed
Section 80CCD(1B) (NPS)AllowedUp to ₹50,000
HRA, LTA, Interest on Home LoanAllowedNot allowed

Selecting Between the Old and New Tax Regimes

Choose the New Regime if: You have minimal investments in tax-saving instruments and prefer a lower tax rate with fewer complexities.

Choose the Old Regime if: You invest heavily in tax-saving options and can significantly reduce taxable income through deductions and exemptions.

It’s advisable to calculate tax liabilities under both regimes or consult a tax expert to determine the most beneficial option.

Conclusion

The revised Income Tax Slabs for FY 2025-26 mark a move towards a simpler and more equitable system. A thorough understanding of the changes and a comparison based on your financial situation will empower you to make smarter tax decisions and improve financial planning.

Stay connected with Growthinfy for the latest tax updates, financial strategies, and expert guidance.

FAQs

1. Can I change tax regimes annually?
Yes. Salaried individuals can switch regimes every year while filing returns. Those with business income can switch only once.
2. Is the standard deduction available in the new regime?
Yes, from FY 2025-26, salaried individuals and pensioners can claim a ₹75,000 standard deduction under the new regime.
3. Can I claim 80C deductions under the new regime?
No, deductions under Section 80C are not available in the new tax regime.
4. Which regime is better?
It depends on your financial profile. If you invest in tax-saving instruments, the old regime may benefit you more. Otherwise, the new regime’s lower rates could be more advantageous.
5. What is the default tax regime for FY 2025-26?
The new tax regime is the default. However, taxpayers can opt for the old regime when filing their income tax return.

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