Recent Developments in India's GST Landscape
As of January 2025, several significant updates have emerged in India's Goods and Services Tax (GST) framework:
Biometric-Based Aadhaar Authentication for GST Registration: To enhance the registration process, the GST Network (GSTN) has introduced biometric-based Aadhaar authentication and document verification. This initiative, rolled out in Rajasthan on January 7, 2025, aims to streamline and secure GST registrations.
Mandatory HSN Code Reporting in GSTR-1 and GSTR-1A: Effective January 2025, taxpayers are required to select the correct Harmonized System of Nomenclature (HSN) codes from a predefined list when filing returns. This measure seeks to improve accuracy in tax reporting.
Implementation of Multi-Factor Authentication (MFA): To bolster security, the GSTN has mandated MFA for e-Way Bill and e-Invoice systems. Taxpayers with an Annual Aggregate Turnover (AATO) exceeding ₹20 crores must comply by January 1, 2025, with subsequent deadlines for other categories.
Extension of GST Filing Deadlines: The Central Board of Indirect Taxes and Customs (CBIC) has extended deadlines for various GST returns for the period ending December 31, 2024. For instance, the GSTR-1 (Monthly) is now due by January 13, 2025.
GST Council's 55th Meeting Outcomes: Held on December 21, 2024, the Council discussed potential tax rate adjustments, including a proposed 35% slab for luxury goods. However, decisions on rate rationalization and GST on insurance premiums were deferred for further study.
Controversy Over GST on Caramelized Popcorn: The GST Council's decision to levy an 18% tax on caramelized popcorn has sparked public debate, with critics labeling the tax structure as overly complex.
GST on Examination Forms: Congress leader Priyanka Gandhi Vadra criticized the imposition of an 18% GST on examination forms, arguing it adds financial strain on job seekers.
Gujarat High Court Ruling on GST for Leasehold Rights: The court ruled that the assignment of leasehold rights is not subject to GST, providing clarity and relief to taxpayers involved in such transactions.
