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GST Registration: Who Needs It and How to Apply

GST Registration: Who Needs It and How to Apply

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

GST Registration in India: 2025 Updated Guide

Goods and Services Tax (GST) in India is a comprehensive, destination-based indirect tax on goods and services. A person engaging in business is required to obtain registration under GST if he satisfies any permitted threshold limit or if the law provides for persons of a particular category to be registered for GST irrespective of threshold limits. The process of registration has been revamped recently by the Central Board of Indirect Taxes and Customs (CBIC) in order to reduce delay and promote transparency .

Who Needs to Register for GST?

Mandatory Registration

1.Registration Thresholds:₹40 lakh for goods (₹20 lakh for services) for most of the states. ₹10 lakh for special category states.

2. Interstate Suppliers: Businesses supplying goods or services across state boundaries, irrespective of turnover.

3. E-commerce Sellers and Aggregators: Any seller selling on platforms such as Amazon, Flipkart, or any other for that matter.

4. Casual & Non-Resident Taxable Persons: Temporary stall owners or foreign companies supplying in India.

5. Reverse Charge & TDS Diductors: Under reverse charge or deducting TDS have to register.

6. Voluntary Registration: The registration can be voluntarily done by any business, even if under the threshold, to avail certain benefits like input tax credit (ITC).

Benefits of GST Registration

  • Legal Recognition: Gives a unique 15-digit GSTIN, improving credibility in front of buyers and authorities.
  • Input Tax Credit (ITC): Enables the claiming back of GST input paid as inputs, thereby reducing the overall tax burden.
  • Interstate Business: Permits a flexible expansion and sales procedure across state boundaries.
  • Simplified Compliance: Merges a bunch of indirect taxes into one system, resulting in less administrative effort.
  • Enhanced Credibility: Builds a high level of trust among big corporates and government tenders.
  • Long Term Validity: A regular GST registration doesn’t expire (except casual/non-resident registrations, which expire 90 days from the date of registration or on the date of supply, whichever is earlier).

Documents Required for GST Registration (2025)

  1. Common to All Types of Business:

  • PAN Card (Business/Individual)
  • Aadhaar Card (for identity check)
  • Bank Account Details (cancelled cheque, bank statement, or passbook extract)
  • Proof of Business Address (rent agreement, utility bill, or sale deed)
  • Passport Size Photograph of the applicant

  1. Sole Proprietorship:

  • PAN and Aadhaar of the Proprietor.

  1. Partnership Firm:

  • Partnership Deed, PAN of firm, Address proof, PAN/Aadhaar of partners.

  1. LLP/Company:

  • Certificate of Incorporation, MOA & AOA, Board resolution, DSC

  1. Non-Resident Taxable Person:

  • Foreign registration, passport copy, PAN/Aadhaar of Indian signatory

  1. Special Cases (SEZ Units):

  • Letter of Approval/Permission from SEZ Authority.

Step-by-Step GST Registration Process (2025)

1.Visit the GST Portal:

 Visit  www.gst.gov.in, Services > Registration > New Registration.

  1. Select Type of Registration:Select relevant types of taxpayer, like Normal, Composition, Casual, etc.
  2. Enter Part A GST REG-01:
  • Here enter the following business legal name, PAN, e-mail, and mobile number.
  • Verify using OTP sent to mail and mobile.
  1. Receive Temporary Reference Number (TRN): Note the  TRN available for Part B.
  2. Complete Part B:
  • Log in using the TRN.
  • Enter business details, promoter/partner information, authorized signatory details, principal place of business, and bank details (optional at this stage).
  • Enter HSN/SAC code for 5 goods and 5 services.
  1. Upload Documents: Upload relevant documents (PDF/JPEG, max 1 MB per file, max two files).
  2. Authenticate Aadhaar: Biometric-based authentication of Aadhaar can grant faster approval.
  3. Verify and Submit: Validate and submit using DSC or EVC.
  4. Receive ARN: Track the status of an application using ARN.
  5. Get GSTIN: Receive the GSTIN and GST REG-06 certificate upon approval.

Processing Time, Fees, and Verification

  • Processing Time: Usually takes 2 to 6 working days where documents are correct and verified. Complex cases may even take up to 15 days.
  • Fees: There is no government fee for GST registration. However, professional bodies may charge for assisting clients.
  • Verification Process: Aadhaar authentication is mandated all over the country for faster approval. Physical verification happens only in cases where Aadhaar authentication has not been used or discrepancies crop up. Senior officer(Joint Commissioner) approval is mandatory for physical verification, which has to be documented with an intimation given beforehand.
  • Penalties: Failure to register when required to shall invite a penalty amounting to 10% of tax due or ₹10,000 whichever is higher.

Key Updates and Best Practices (2025)

  • Strict Document List Adherence: Officers must only request documents listed in FORM GST REG-01. Additional documents cannot be demanded without specific approval .
  • Enhanced Accountability: Physical verification now requires prior approval from a Joint Commissioner, reducing harassment and delays
  • Aadhaar Authentication: Biometric-based Aadhaar authentication is mandatory for most applicants, speeding up the process and reducing the need for physical verification .
  • Transparency and Timeliness: The CBIC has emphasized minimal queries and timely approvals to support genuine businesses .

Common Mistakes to Avoid

  • Incorrect PAN Details: Legal name must not differ from PAN.
  • Blurry/Invalid Documents: Clear, recent, and valid documents required.
  • Mismatch in Address: Address proof has to match the declared place of business.
  • Expired DSC: For companies/LLPs, the Digital Signature Certificate should be valid.
  • Delay in the OTP/TRN Verification: OTP and TRN are time-sensitive.
  • Ignoring Updates: Constantly update oneself with changes in GST rules and guidelines.
  • Incomplete HSN/SAC Codes: Rejection can occur if there is an inaccuracy in the code for goods/services.

FAQs

 Is registration under GST compulsory for small businesses?

No, if the turnover is below the threshold. However, voluntary registration is allowed for claiming the input tax credit.

What is the validity period under GST?

The normal registration is permanent; registration for casual or non-resident suppliers is valid for 90 days or the period of supply.

Can details be amended post-registration?

Yes. Such amendments can be done using Form GST REG-14.

What if I am not registered when required to do so?

A penalty of 10% of tax due or Rs.10,000, whichever is higher. 

Is it mandatory to provide bank details at the time of registration?

No, it is optional. In the case of providing bank details later, the same should be updated within 45 days post-registration by an amendment application.

How can I check the status of my application for registration?

Using ARN on the GST Portal (Services > Registration > Track Application Status).

 

 

E-Way Bill: Rules, Compliance, and Common Challenges

 WHAT IS E-Way Bill SYSTEM?

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

E-Way Bill: Rules, Compliance, and Common Challenges

A key component of India’s Goods and Services Tax (GST) framework, the E-Way Bill was created to facilitate the flow of goods throughout the nation. Real-time tracking of goods in transit and the prevention of tax evasion are the two main goals of the e-way bill system.

This article offers a thorough overview of e-way bill regulations, compliance standards, and typical business difficulties. Knowing how the e-way bill portal operates is crucial for hassle-free operations, regardless of your role as a manufacturer, trader, or transporter.

What is an E-Way Bill?

For the transportation of goods valued at more than ₹50,000, an electronic document known as an E-Way Bill is necessary. It must travel with the goods and is created on the e-way bill portal (https://ewaybillgst.gov.in).

Applicability of E-Way Bill

When is an E-Way Bill Required?

  • Transportation of goods between states (interstate) or within a state (intra-state)
  • Over ₹50,000 is the value of the consignment (which could be for one invoice or several invoices in one vehicle).
  • Job work consignments or e-commerce transactions

Who Should Generate the E-Way Bill?

  • Those who have registered: When products are delivered by courier or in their own or rented car
  • Transport :  If the e-way bill has not been created by the supplier
  • Unregistered individuals: When delivering to a registered individual

How to Generate E-Way Bill – Step-by-Step

You can generate an e way bill using:

Steps to Generate E-Way Bill on Portal:

  1. Login to ewaybillgst.gov.in
  2. Go to E-Way Bill > Generate New
  3. Fill details like:
    • GSTIN of supplier/recipient
    • Invoice number & date
    • Value of goods
    • HSN code
    • Transporter details (vehicle number, mode of transport)
  5. Click “Submit” and a unique 12-digit EWB number will be generated.

Validity of E-Way Bill

Distance (in KM)

Validity

Up to 100 km

1 day

Every additional 100 km

+1 day

Note: For over-dimensional cargo (ODC), different rules apply.

E-Way Bill Compliance Rules

1. Carry E-Way Bill During Transit

  • The driver must carry the e way bill (physical copy or EWB number).

2. Part-B is Mandatory for Transport

  • Part-B (vehicle number) is required before goods are transported.

3. Updating Vehicle Number

  • If the vehicle changes en route, the EWB must be updated.

4. Cancellation

  • E-way bill can be cancelled within 24 hours of generation (if goods were not transported).

5. Consolidated E-Way Bill

  • If multiple consignments are being transported in one vehicle, a consolidated e way bill can be generated.

Penalties for Non-Compliance

  • ₹10,000 or tax sought to be evaded—whichever is higher.
  • Goods and vehicle can be detained or seized.
  • Mandatory penalty for incorrect or expired EWB.

Common Challenges in E-Way Bill Compliance

1. Data Entry Errors

  • Incorrect GSTIN, HSN, or invoice value can invalidate the EWB.

2. Vehicle Number Update Delays

  • Frequent vehicle changes require real-time updates, which many businesses miss.

3. Connectivity Issues

  • Internet or server downtime on the e way bill portal can delay generation.

4. Non-Integration with ERP

  • Businesses not using API integration face delays due to manual entry.

5. Interpretation of Distance & Route

  • Misunderstanding actual distance can lead to early EWB expiry.

Best Practices for Smooth E-Way Bill Compliance

  • Use an API to connect billing or ERP software to the e-way bill system.
  • Develop warehouse and logistics teams
  • Audit EWB records on a regular basis and compare them to invoices.
  • For transactions with a high volume, use the bulk upload feature.
  • Remind people when their EWBs expire and renew.

Conclusion

An essential component of GST compliance in India is the e-way bill system. When used properly, it makes logistics easier and promotes transparency. Businesses can guarantee smooth transportation and stay out of trouble by knowing the regulations, making effective use  of the e-way bill portal, and avoiding typical errors.

Growthinfy offers comprehensive support for GST compliance. Allow us to assist you in becoming more intelligent and staying compliant.

FAQs on E-Way Bill

Q1. Can I generate an E-Way Bill without GST registration?
No, only registered users can generate EWB except in the case of unregistered-to-registered supply.

Q2. Is EWB needed for job work?
Yes, job work transactions also require e way bill generation.

Q3. What if the goods are sent through public transport?
Even then, an EWB is mandatory, and the transporter details must be updated.

What Is Input Tax Credit

Unveil the Hidden Magic of Input Tax Credit (ITC) and Maximize Your GST Benefits

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

What Is Input Tax Credit (ITC) and How to Claim It?

With the Input Tax Credit (ITC), companies in India can take advantage of an important attribute under the GST system. It grants companies credit for GST paid on purchases or expenses made for business purposes, thereby reducing their overall tax burden. For any company to maximize cash flow and ensure compliance with the act, it will be important that they understand what input tax credit is and how to ask for it under GST.

To make ITC a prime resource for companies in taking full advantage of GST tax planning, we will go through the concept of ITC, its advantages, eligibility requirements, procedure to claim, and recent developments.

What Is Input Tax Credit?

Input Tax Credit refers to the credit a registered taxpayer receives for the GST paid on inputs (goods or services purchased) that are used in the course of business. You can deduct this input tax from your output tax liability (i.e., the GST you collect from customers).

What Is Input Tax Credit under GST with Example?

Suppose you are a manufacturer:

1. GST on your sales (output tax) = ₹10,000
2. GST paid on purchases (input tax) = ₹6,000
3. Net GST payable to government = ₹10,000 – ₹6,000 = ₹4,000

Such adjustment of input tax against output tax is called Input Tax Credit under GST scenario.
Input Tax Credit is that credit which a registered taxpayer gets in respect of GST paid on purchase of inputs (goods or services) used in the course of business. This input tax may be adjusted against the output tax payable (GST charged from customers).

Who Can Claim Input Tax Credit?

To claim ITC, a person must:

  • Register for GST.
  • Have a legitimate tax invoice or debit note on hand.
  • Have received products or services
  • Verify that the supplier has submitted a GSTR-1 and paid GST to the government.
  • Properly file GSTR-3B.
  • Within 180 days of the invoice date, pay the supplier.
  • Not included in the composition scheme
  • Not deduct depreciation from capital goods’ tax component

What Can Be Claimed as Input Tax Credit?

ITC can be claimed on goods and services used only for business purposes. However, there are specific exclusions.

Ineligible ITC under GST (As per Section 17(5) of CGST Act):

  • Motor vehicles for personal use
  • Food and beverages, outdoor catering (unless obligatory under law)
  • Club memberships, health & fitness services
  • Construction of immovable property (except for plant and machinery)
  • Goods lost, stolen, written off, or given as gifts
  • Documents Required to Claim ITC

To claim ITC, maintain the following documents:

  • Tax invoice issued by supplier
  • Debit note (if applicable)
  • Bill of entry (in case of imports)
  • ISD invoice (for input service distribution)
  • Any document as prescribed under GST rules

How to Claim Input Tax Credit Under GST?

Claiming ITC is a step-by-step process that must be done with accuracy to avoid penalties.

Step-by-Step Process to Claim ITC:

  • Reconcile purchase register with GSTR-2B (auto-generated ITC statement)
  • Ensure supplier has filed GSTR-1 and invoice reflects in GSTR-2B
  •  File your GSTR-3B return
  • Report the eligible ITC in Table 4A of GSTR-3B
  • Reverse any ineligible ITC in Table 4B
  • Match and validate using the Invoice Management System (IMS)

Note: From 1st January 2022, provisional ITC is no longer allowed. You can only claim credit for invoices that appear in your GSTR-2B.

Time Limit to Claim ITC

For example, if an invoice is dated 10th March 2025, you must claim ITC by 30th November 2025, or before you file the annual return for FY 2024-25.

  • ITC must be claimed by November 30 of the subsequent fiscal year, OR
    the annual return filing date, whichever comes first.

For instance, you must claim ITC by November 30, 2024, or prior to filing the annual return for FY 2023–2024, if the invoice is dated March 10, 2024.

Reversal of Input Tax Credit

ITC must be reversed in specific situations:

  • Payment to supplier not made within 180 days
  • Goods/services used partly for personal use or exempt supplies
  • Credit notes issued post-supply
  • Capital goods used for both exempt and taxable supplies
  • ITC claimed but later found ineligible or mismatched
  • Such reversals must be reported in GSTR-3B and may attract interest.

ITC Reconciliation – Why It Matters?

ITC reconciliation ensures your GSTR-3B claims match with:

  • Your purchase register
  • The supplier’s GSTR-1 (via GSTR-2B)
  • The Invoice Management System (IMS)

Failure to reconcile accurately may result in GST notices, demand for excess claimed ITC, and potential penalties.

Automating ITC Claims – The Smart Way Forward

With GST compliance becoming more digitized, using automation tools like GST reconciliation software helps:

  • Match invoices across GSTR-2B, IMS, and purchase register
  • Identify mismatches and take corrective actions
  • Auto-calculate ITC reversals
  • Maintain audit trails and documentation
  • This reduces errors, ensures timely filing, and maximizes your eligible ITC.

Current Input Tax Credit Updates (per Union Budget 2025)

  • Section 34 Amendment: If the supplier issues a credit note, the ITC has to be reversed.
  • Section 38 Amendment: Invoice-level validation through IMS is now required after the term “auto-generated” was eliminated.
  • Section 128A Relief: Notification No. 21/2024 exempts certain non-fraudulent ITC claims from 2017–2020 from interest and penalties.

Conclusion

Every GST-registered business in India must comprehend what input tax credit (ITC) is and follow the proper procedure for claiming ITC under GST. In addition to lowering tax outflow, accurate compliance enhances cash flow overall. Using automation tools and keeping up with legal changes will guarantee that you’re always ahead of compliance challenges as the GST law becomes more data-driven and reconciliations more complicated.

FAQs

Q1. Is it possible to claim ITC on capital goods?
Yes, if they are used for business and not claimed as depreciation.

Q2. Can ITC be claimed on exempt supplies?
No, ITC is not allowed for inputs utilized for making exempt supplies.

Q3. What if my supplier fails to file GSTR-1?
You cannot claim ITC unless the supplier files GSTR-1 and it gets reflected in your
GSTR-2B.

Q4. Am I entitled to claim ITC under the composition scheme?
No, businesses under the composition scheme are not entitled to ITC

GST Return Filing Process: A Complete Step-by-Step Guide

GST Return Filing Process: A Complete Step-by-Step Guide

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

GST Return Filing Process

GST Return filing is one major compliance requirement for businesses registered under the Goods and Services Tax (GST) regime in India. It involves submission of detailed sales, purchases, tax collected, and input tax credit (ITC) availed information within a predetermined time frame.


Whether you’re a startup, small business entity, or big business house, it is crucial to understand the procedure and schedules for GST Return filing to stay away from penalties and smooth functioning.

In this article, we will guide you through:

  • What is GST Return filing?
  • Types of GST returns
  • Step-by-step procedure to file GST returns online
  • Key GST Return filing dates you need to remember

What is GST Return Filing?

GST Return filing is the process of furnishing business-related transaction data to the government via the GST portal. These returns help the tax authorities assess your tax liability, monitor compliance, and facilitate the claiming of input tax credit.

Every registered taxpayer must file GST returns periodically—monthly, quarterly, or annually—based on their type of registration and turnover.

Types of GST Returns

Here is a list of the most frequently filed GST returns by taxpayers:

Return Form

Applicable To

Frequency

Key Details

GSTR-1

Regular taxpayers

Monthly/Quarterly

Details of outward supplies (sales)

GSTR-3B

Regular taxpayers

Monthly/Quarterly

Summary return: outward supplies, ITC, and tax liability

GSTR-4

Composition scheme taxpayers

Annually

Summary of sales and tax paid

GSTR-5

Non-resident taxable persons

Monthly

Outward and inward supplies, tax liability

GSTR-6

Input Service Distributors

Monthly

ITC received and distributed

GSTR-7

TDS deductors

Monthly

TDS details

GSTR-8

E-commerce operators (TCS)

Monthly

TCS collected and supplies made

GSTR-9

Regular taxpayers

Annually

Annual summary of transactions

GSTR-9C

Taxpayers requiring audit

Annually

Reconciliation between GSTR-9 and audited financials

GSTR-10

Cancelled registrations

One-time

Final return post cancellation

GSTR-11

UIN holders (e.g., embassies)

Monthly

Inward supplies and refund claim

Important GST Return Filing Dates (2025-26)

It is essential to submit GST returns within time to evade interest, late fees, and notices. Below are the dates of GST Return filing you should keep in mind:

Return Type

Due Date

GSTR-1 (Monthly)

11th of next month

GSTR-1 (Quarterly – QRMP)

13th of month after the quarter

GSTR-3B (Monthly)

20th of next month

GSTR-3B (Quarterly – QRMP)

22nd/24th of month after the quarter (based on state)

GSTR-4 (Annual for Composition)

30th April of next financial year

GSTR-9 & 9C (Annual Return & Audit)

31st December of next financial year

GSTR-5/5A/6/7/8

10th to 20th of next month depending on form

Pro Tip: Use a reminder tool or compliance calendar to never miss a deadline.

Step-by-Step GST Return Filing Process

Do the following to file your GST return properly through the official website www.gst.gov.in:

Step 1: Login to the GST Portal

Go to gst.gov.in and log in using your GSTIN, username, and password.

Step 2: Access Returns Dashboard

Go to: Services > Returns > Returns Dashboard
Choose the correct Financial Year and Return Filing Period.

Step 3: Choose the Appropriate Return Form

Click on the return you wish to file—e.g., GSTR-1, GSTR-3B—and choose “Prepare Online”.

Step 4: Enter Transaction Details

Enter data manually or upload relevant invoice information. Check the amounts, save the form, and click on Submit.

Step 5: Pay Tax Liability

Click on Payment of Tax, verify your cash and credit balance, and use the “Offset Liability” option to pay the net tax amount.

Step 6: File the Return

After payment, check the declaration checkbox, select the authorised signatory, and file the return through DSC or EVC.

After filing, a confirmation with an Acknowledgement Reference Number (ARN) will be provided.

Tips for Accurate GST Return Filing

  • Keep proper records of invoices and credit notes.
  • Reconcile on a monthly basis with GSTR-2A/2B to make accurate ITC claims.
  • Don’t wait until the last minute to file to avoid system overload or mistakes.
  • Use accounting software or GST return filing tools for automation.

Conclusion

Knowing the GST Return filing process and following the right GST Return filing dates keeps you compliant and away from unwanted penalties. Although the process itself might look daunting at first, practice every now and then with the proper tools or professional assistance can make it easy sailing.

Need help with submitting your GST returns or being compliant? Talk to Growthinfy – Your go-to partner for tax and startup solutions.

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.

CBIC’S Revised Guidlines For GST Registrations– April 2025

Posted on: by: Rahul sainiin: Indirect TaxLeave a reply

CBIC’S REVISED GUIDELINES FOR GST REGISTRATION – April 2025

To boost the Ease of Doing Business, the CBIC-wide Instruction No. 03/2025-GST dated 17th April 2025, issued the latest instructions for processing of applications for GST registration. Applicants were facing difficulties in getting GST registrations, mainly due to the nature of clarification being sought by the officers, such as unnecessary documents outside the purview of the listed documents as prescribed in the GST registration form. To streamline the registration process, Physical verification, Nature of queries being raised, Deemed Registration, etc., for ensuring GST registrations without undue harassment to genuine applications, while preventing the fraudulent firms from getting the registration for bogus ITC claims, these instructions have been issued. Let’s dive deep into the Key changes this instruction aims to provide.

Why was there a need for Improvement?

It was leading to unnecessary delay and rejection mainly due to the following two reasons:

  1. Avoidable Nature of Clarifications
    Such as why the applicant/ Managing director/Authorized signatory’s residential address is not in the same city as the city in which registration is being applied for. or, why are there HS codes of Goods in registration that are banned/prohibited in the state for sale, etc.
  2. Additional docs not Prescribed Anywhere
    Mainly on account of proof of principal place of business, constitution of business, identity details of authorized signatory, owner etc. Documents such as UDHAYM (MSME) Certificate, Shop Establishment Certificate, trade license, etc., were being sought after.

What are the changes in documents to be sought after?

A. Documents in respect of Principal Place of Business (PPOB):

Status of PremiseDocuments requiredImportant Change
OwnedProperty Tax receipt/ Municipal Khata copy/Electricity Bill/ water bill or any other document prescribed under the State or the local laws, which clearly establishes the ownership of the premises (Hereinafter referred to as “Indicative List of Documents”)Any one document uploaded on the portal will be sufficient, and no additional document should be requested from the applicant for proof of ownership of the premises of the applicant, and No query will be raised for asking the original physical copy of these documents from the Applicant
Rented (registered)Rent/Lease agreement along with any one document in the indicative list of documentsPAN card, Aadhar Card, photograph of the lessor in front of/or inside the property are not required
Rented (Unregistered)An agreement along with any one document in the indicative list and a Copy of the identity proof of the lessorWhere the Electricity or water bill is in the name of the applicant tenant, no additional documents pertaining to the lessor are required
Rented (Agreement Unavailable)Affidavit to the effect, any one document from the indicative listThe affidavit should be executed on Non judicial stamp stamp paper of minimum value in presence of First-Class Judicial Magistrate or Executive Magistrate or Notary Public.
Ownership of Spouse/relativeConsent letter on plain paper, Identity proof of the person granting consent, and any one of the documents from the indicative list 

 

Documents in respect of the Constitution of Business:

Nature of BusinessDocument requiredImportant Change
PartnershipPartnership DeedDocuments such as UDHYAM Certificate, MSME Certificate, Shop establishment certificate, trade license, etc., are not required.
Society, Trust, Club, Government Department, Association of Persons or Body of Individuals, Local Authority, Statutory Body, and Others etc.Registration Certificate/Proof of Constitution is required 

Updated Timelines

  • File Registration Application via FORM GST-REG01
  • Officer to check, Information and documents are Legible, Complete and Relevant, Cross Verify from publicly available resources such as land registry, electricity distribution companies, municipalities, and local bodies, etc.
  • Approve the application within 7 Days of receipt where details are found complete
  • Where the Applicant falls under the following conditions, grant the application within 30 days of submission after physical verification:
    • The Applicant has been flagged as Risky
    • The Applicant does not opt for Aadhaar authentication
    • The officer may deem fit, after approval of the assistant commission or above rank
  • Where Physical verification is conducted, the officer is to upload the Physical verification report in accordance with provisions of rule 9 of CGST Rules, read with rule 25 thereof, at least 5 days prior to expiry of 30 days from the date of submission.
  • In case the application is found deficient, the officer may seek clarification or information, or document(s), as in the following cases:
    • Document is incomplete or not legible
    • Address Mismatch or the uploaded document does not appear to be valid proof
    • Address is incomplete or vague
    • Any GSTIN linked to PAN has been cancelled or suspended
  • The officer will issue a notice within 7 working days from the date of submission, 30 days (Where flagged risky). However, if any document apart from the listed documents in the indicative list is required to be sought, the officer shall seek the same only after the approval of the concerned Deputy/Assistant Commissioner
  • Applicant is required to furnish a reply within 7 working days from the date of receipt of notice
  • The officer, upon satisfaction with the reply, will approve registration within 7 working days from the date of receipt of the reply
  • Where the reply is unsatisfactory, the officer, after recording the reason in writing, will reject the application and inform the applicant electronically.

Summary

CBIC wide its latest instruction dated 17th April 2025 aims to ease GST registration by addressing delays and rejection due to unnecessary clarifications and additional documents being sought by the officers.

Key Changes include only one document from indicative list of documents (As listed above) is required to be furnished while filing refund application for proof of Principal place of business. Further, for the Business constitution certificates such as UDHYAM, MSME, trade license, etc., are not required.

Overall, this will reduce the processing time and help India improve its aim of Ease of doing business.

 

Disclaimer:
The contents of this article are intended solely for educational and informational purposes and do not constitute professional or legal advice. Readers are advised not to act upon the information provided without seeking guidance from a qualified professional. Every business or legal situation is unique, and professional consultation is recommended. Neither the author nor Growthinfy.com accepts any responsibility for any loss or damage incurred by relying on the information in this article.

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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.

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.