Summary: Recent GST updates, effective from April 2025 onwards, introduce several changes impacting registration, compliance, and e-documentation. Biometric-based Aadhaar authentication for GST registration has been implemented in Assam from April 1, 2025, requiring selected applicants to visit a GST Suvidha Kendra (GSK) for verification. Simultaneously, the formats for GSTR-7 (TDS) and GSTR-8 (TCS by E-Commerce Operators) have been revised to mandate more detailed, invoice-wise reporting to enhance data accuracy and compliance. A key clarification from the government confirms that there is no GST levied on UPI transactions, even those exceeding INR 2,000, reiterating that GST is only applicable to payment-related charges like Merchant Discount Rate (MDR), which has been zero for Person-to-Merchant (P2M) UPI transactions since January 2020. Further operational adjustments include the Invoice Reporting Portal (IRP) treating invoice/document numbers as case-insensitive for IRN generation from June 1, 2025, automatically converting them to uppercase to prevent duplication and align with GSTR-1. From April 2025, values in Table 3.2 of GSTR-3B, which covers inter-state supplies to unregistered persons, composition taxpayers, and UIN holders, will be auto-populated and non-editable, necessitating accurate reporting in GSTR-1, GSTR-1A, or IFF for corrections. E-invoicing now mandates businesses with an Annual Aggregate Turnover (AATO) above ₹10 crore to report e-invoices within 30 days of the invoice date. Additionally, e-Way Bill generation is restricted to documents dated within the preceding 180 days, and extensions are capped at 360 days from the original generation date, both effective from January 1, 2025. To streamline the GST registration process and reduce issues for applicants, CBIC issued Instruction No. 03/2025-GST on April 17, 2025, advising officers to adhere strictly to prescribed document lists, avoid unnecessary demands, and obtain approval for additional documents.
1. Advisory for Biometric-Based Aadhaar Authentication & Document Verification for GST Registration in Assam (Effective April 1, 2025)[1]
- New Rule Implementation: As per amended Rule 8 of the CGST Rules, 2017, applicants may now be selected based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and document verification during GST registration.
- Functionality Rollout: This new process has been implemented in Assam starting April 1, 2025.
- Two Types of Authentication Links:
1. OTP-based Aadhaar Authentication: If received, applicants can proceed as usual.
2. Biometric-based Authentication: If selected, applicants will receive a link to book an appointment at a GST Suvidha Kendra (GSK).
- Appointment Booking:
1. Applicants selected for biometric authentication must book an appointment via the link provided in the email.
2. Appointment slots are available starting April 1, 2025.
- After booking, a confirmation email will be sent with details.
- Documents to Carry to GSK:
1. Appointment confirmation (hard/soft copy)
2. Jurisdiction details (as per email)
3. Original Aadhaar and PAN cards
4. Original documents uploaded with the application
- Verification Process: Biometric and document verification will be conducted at the GSK and all relevant individuals listed in Form GST REG-01 must attend.
- Application Timelines: Applicants must complete the biometric process within the allowed period stated in the email. ARN (Application Reference Number) will be generated only after successful authentication and verification.
- GSK Operations: Operating days and hours will follow local administrative guidelines.
2. Revised GSTR-7 and GSTR-8 Formats[2]
- GSTR-7 (TDS): The format has been modified to include invoice/document-wise details of tax deducted, requiring additional data such as the deductee’s GSTIN, invoice details, the amount paid, and tax deducted.
- GSTR-8 (TCS by E-Commerce Operators): Updates have been made to provide comprehensive details of supplies made through e-commerce platforms, facilitating improved compliance and reporting accuracy.
3. NO GST ON UPI TRANSACTIONS OVER INR 2,000[3]
- No GST on UPI Transactions: Claims about the government planning to levy GST on UPI transactions over ₹2,000 are false and baseless. There is no such proposal under consideration.
- Current Tax Policy: GST is only applicable to payment-related charges like the Merchant Discount Rate (MDR). However, since January 2020, MDR has been removed on Person-to-Merchant (P2M) UPI transactions, hence no GST applies to them.
- Support for Digital Payments: The government is actively promoting digital payments via UPI.
- UPI Incentive Scheme: Introduced in FY 2021-22 to support low-value P2M UPI transactions, especially benefiting small merchants by reducing transaction costs.
- FY2021-22: ₹1,389 crore
- FY2022-23: ₹2,210 crore
- FY2023-24: ₹3,631 crore
- Growth of UPI: UPI has seen exponential growth, with total transaction value increasing from ₹21.3 lakh crore in FY 2019-20 to ₹260.56 lakh crore by March 2025. P2M transactions alone reached ₹59.3 lakh crore.
- Global Leadership: India accounted for 49% of all global real-time transactions in 2023, according to the ACI Worldwide Report 2024, affirming its leadership in digital payments.
4. Advisory on Case Insensitivity in IRN Generation (Effective June 1, 2025)[4]
- Starting June 1, 2025, the Invoice Reporting Portal (IRP) will treat invoice/document numbers as case-insensitive during IRN (Invoice Reference Number) generation.
- Invoice numbers like “abc”, “ABC”, or “Abc” will be treated the same and automatically converted to uppercase to prevent duplication.
- This change aligns with the existing treatment of invoice numbers in GSTR-1.
- For further queries, taxpayers are advised to contact the GST helpdesk.
5. Advisory on Reporting Values in Table 3.2 of GSTR-3B (Effective April 2025)[5]
- Purpose of Table 3.2: Captures inter-state supplies made to unregistered persons, composition taxpayers, and UIN holders, based on data from Table 3.1 & 3.1.1 of GSTR-3B.
- Auto-Population Source: Values in Table 3.2 are auto-populated from corresponding inter-state supplies reported in GSTR-1, GSTR-1A, and IFF.
- Non-Editable Values: From the April 2025 tax period, the auto-populated values in Table 3.2 of GSTR-3B will be non-editable.
- How to Amend Values: Any corrections must be made by amending the values in the relevant tables of GSTR-1A or through subsequent filing of GSTR-1/IFF.
- Accurate Reporting Advised: Taxpayers should ensure accurate reporting in GSTR-1, GSTR-1A, or IFF to ensure Table 3.2 of GSTR-3B reflects correct data.
- Compliance Focus: Accurate and consistent reporting in the source returns will ensure compliance and prevent issues during GSTR-3B filing.
- For FAQs regarding the above, visit the link provided in the footnote.
6. E-Invoicing and E-Way[6]
- E-Invoice Reporting: Businesses with an Annual Aggregate Turnover (AATO) above ₹10 crore must report e-invoices within 30 days from the invoice date. Previously, this applied only to businesses with AATO above ₹100 crore.
- E-Way Bill Validity: The generation of e-Way Bills is restricted to documents dated within the preceding 180 days, effective from January 1, 2025.
- E-Way Bill Extensions: Extensions of e-Way Bills are capped at 360 days from the original date of generation.
Introduction of DISHA – Self-Help Mobile App for Visitors and Taxpayers
- The DISHA mobile application, developed as a self-help tool to aid visitors and taxpayers in navigating and locating various offices and sections within the CGST & Customs Pune Zone, was officially launched by Shri Mayank Kumar, Chief Commissioner of CGST & Customs, Pune Zone.
7. CBIC Issues Guidelines to Streamline GST Registration Process (Instruction No. 03/2025-GST)[7]
- The Central Board of Indirect Taxes and Customs (CBIC) has received numerous complaints regarding challenges faced by applicants during the GST registration process, particularly due to unnecessary demands for additional documents by officers. In response, CBIC issued Instruction No. 03/2025-GST on April 17, 2025, to ensure a smoother and more efficient registration experience.
- Key points from the instruction include:
- Officers must strictly follow the prescribed list of documents outlined in the GST registration application form.
- No notices should be issued based on presumptions, minor discrepancies, or for documents not essential to the registration process.
- If additional documents beyond the standard list are needed, officers must obtain approval from the Deputy/Assistant Commissioner.
- Zonal Chief Commissioners have been advised to implement monitoring mechanisms and issue relevant trade notices.
- Strict action is to be taken against officers who do not comply with these directions.
- These measures aim to simplify the registration process, reduce compliance burdens, and promote ease of doing business.
- For full details, refer to the official instruction here: CBIC Instruction No. 03/2025-GST (PDF)
[1] https://taxguru.in/goods-and-service-tax/aadhaar-authentication-gst-registration-haryana-manipur-meghalaya-tripura.html
[2] https://taxguru.in/goods-and-service-tax/form-gstr-7-faqs-manual.html
[3] https://taxguru.in/goods-and-service-tax/gst-upi-payments-rs-2000-govt-clarifies.html
[4] https://taxguru.in/goods-and-service-tax/gst-advisory-case-sensitivity-irn-generation.html
[5] https://taxguru.in/goods-and-service-tax/gstn-advisory-reporting-values-table-3-2-gstr-3b.html
[6] https://einvoice1.gst.gov.in/
[7] https://taxguru.in/goods-and-service-tax/gst-registration-application-processing-instructions.html
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Editor:- Adv Ankit Jawaria, Adv Peeyush Kumar Sahlot, Adv Kunjal Jawaria
Disclaimer: The content of this newsletter is for informative purpose only, we shall not take any liability for any decision taken based on this. You should carefully study and take instruction under respective Act, Rules, Notification, circular and original published content by government before taking any decision, Thanks for reading
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