GST Updates & Compliance Guidelines for March 2025

Common portal of GST, GSTN keeps on issuing advisories on new functions / updates on the portal for upgradation of functionalities and new options or functions enabled for implementation by taxpayers.

Further, GST related Questions were replied by Ministry of Finance in the Parliament. The replies are captured in this Article. March being the last month of the Financial Year, this article covers the list of actions required by taxpayers for various compliances in the month of March.

GSTN Advisories

During the month of March, 2025, the following advisories have been issued so far in relation to the various compliances by GSTN:

• Directors allowed to opt for Biometric Authentication
• Issue in filing applications (SPL 01/SPL 02) under waiver scheme

The gist of these advisories is summarized below:

 Directors allowed to opt for Biometric Authentication

• GSTN has issued an Advisory providing enhancements in Biometric functionality for allowing Directors to opt for Biometric Authentication in their Home State.
• Presently, applicants selected for Biometric Authentication must visit the designated GST Suvidha Kendra (GSK) mapped to their jurisdiction.
• GSTN has now introduced an additional facility allowing certain Promoters/Directors to complete their Biometric Authentication at any GSK in their Home State.
• This facility applies to individuals listed in the Promoter/Partner tab for these types of businesses, i.e., Public Limited Company, Private Limited Company, Unlimited Company, and Foreign Company.
• Under this enhancement, such Promoters/Directors can now choose any available GSK within their Home State in India (as per REG-01) for Biometric Authentication.
• This facility is currently available in 33 States/UTs where Biometric Authentication has been enabled. It will soon be extended to the remaining three states: Uttar Pradesh, Assam, and Sikkim. Such Promoters/Directors whose Home State is other than Uttar Pradesh, Assam, or Sikkim can opt for any GSK in their Home State.
• Opting for Biometric Authentication at a GSK in the home state is not mandatory. Promoters/Directors can visit their designated jurisdictional GSK, if preferred.

For details, GSTN portal may be visited.

(Source: GSTN Advisory dated 03.03.2025)

Issue in filing applications (SPL 01/SPL 02) under waiver scheme

• The GSTN has issued an advisory dated 21.03.2025 in relation to issue in filing applications (SPL 01/SPL 02) under waiver scheme.
• The Goods and Services Tax Network (GSTN) has received multiple grievances from taxpayers regarding difficulties faced while filing waiver applications. The GSTN team is actively working to resolve the following reported issues:
• The order number is not appearing in the dropdown for selection.
• Order details are not getting auto-populated after selecting a specific order in SPL-02.
• Payment details are not getting auto populated in table 4 of SPL-02.
• After filing SPL-02 for a demand order, taxpayers are unable to make payments using the “Payment Towards Demand” functionality. Taxpayers cannot adjust the amount paid through DRC-03 against the same demand order using DRC-03A.
• Taxpayers are unable to withdraw Appeal applications (APL-01) filed before the First Appellate Authority against a specific order.

Further, there is a misconception among taxpayers regarding the last date to file waiver applications. Please note the following points:

• The deadline to file waiver applications is NOT 31.03.2025.
• As per Rule 164(6) of the CGST Rules, 2017, taxpayers must file waiver applications within three months from the notified date. Hence, waiver applications in SPL-01/02 can be filed until 30.06.2025.
• However, as per Notification 21/2024-CT dated 08.10.2024, the due date for tax payment to avail of the waiver scheme is 31.03.2025.
• Taxpayers are advised to make the necessary payment by 31.03.2025 using the “Payment Towards Demand” functionality on the GST portal.
• If any difficulty arises while using this functionality, taxpayers should make a Voluntary Payment using Form DRC-03 under the category ‘Others’.
• After payment, submit Form DRC-03A to link the payment with the relevant demand order.
• If payment details are not auto-populated in Table 4 of SPL-02, verify them in the Electronic Liability Ledger on the GST portal.
• Navigation path: Login >> Services >> Ledgers >> Electronic Liability Register.

 (Source: GST Advisory dated 21.03.2025)

 Parliament Questions

Update on GST tax evasion

• GST evasion cases during the current fiscal of 2024-25 from April, 2024 to 31^st January, 2025 stood at Rs. 1.95 trillion from 25397 cases out of which Rs. 21,520 crore was voluntarily deposited by taxpayers.
• Among the 25,397 cases detected in the current fiscal, 13,018 cases are related to Input Tax Credit (ITC) fraud, involving an amount of Rs 46,472 crore.
• Breakup of tax evasion of Rs. 6.79 trillion from 86711 cases in last five years is:
• 2023-24:Rs 2.30 trillion
• 2022-23:Rs 1.32 trillion
• 2021-22:Rs 73,238 crore
• 2020-21:Rs 49,384 crore

 (Source: Reply to a question in Parliament dated 10.03.2025)

GST on Insurance related services

• MoF replied to a Parliament Question on reduction of GST on health and life insurance policies as under:
• GST rates and exemptions on all services and goods are prescribed on the recommendations of the GST Council which is a Constitutional body comprising of members from both the Union and State/UT Governments.
• The GST Council had recommended to constitute a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on life insurance and health insurance.
• A Group of Ministers (GoM) on Life and Health Insurance has been constituted under the Convenorship of Shri Samrat Choudhary, Hon’ble Deputy CM, Bihar.
• GoM recommendations are awaited.
• Further, an effective regulatory framework in the form of regulations on insurance products and master circulars issued thereon is in place to monitor insurance products, which includes designing insurance products and setting insurance premiums.
• As the GST rates are applicable over and above the insurance premium, if the GST rate is reduced, it is expected to benefit the policyholder directly especially in a competitive market with many insurers.

(Source: Reply to Parliament Question in Lok Sabha on 17.03.2025)

 GST: Things to do in March, 2025

FY 2024-25 comes to an end on 31^st March, 2025. Here are few action points requiring attention of taxpayers:

• Opting for Composition scheme in Form GST-CMP 02 online before 31.03.2025.
• GTAs opting for payment of GST under forward charge mechanism for FY 2025-26 to file a declaration as per Annexure V by 15.03.2025.
• Filing of application for LUT for making export of supplies / zero rated supplies in FY 2025-26 before 31.03.2025.
• Filing reconciliation GSTR-9C statement before 31.03.2025 if pending where GSTR-9 (Annual return) is already filed to avail late fee waiver.
• Availing GST Amnesty scheme under Section 128A of CGST Act, 2017 for waiver of interest and penalty u/s 73 in Form GST SPL-1 and SPL 2 latest by 31.03.2025.
• Opting for quarterly return monthly payment (QRMP) scheme for FY 2025-26.
• Filing of annual RODTEP return for exporters by 31.03.2025( 30^th June, 2025 with late fee of Rs. 10,000/-)
• Applying for GST refunds for the period April, 2023 onwards.
• Renewal of common input tax credit for exempt supplies in FY 2024-25 before 31.03.2025.
• Reconciliation of GSTR-2A and GSTR-3B to identify any excess ITC claims and its reversal.
• Obtaining ISD registration which becomes mandatory w.e.f. 01.04.2025.
• To close existing series of invoice numbering on 31.03.2025 and commence a new series from 1^st April, 2025 to maintain unique invoice services numbering.