GST Changes in 2025: Key Updates from the 55th GST Council Meeting and Compliance Guidelines

Key Updates from the 55th GST Council Meeting

Key Updates from the 55th GST Council Meeting  As we enter 2025, businesses must stay updated with the latest changes in Goods and Services Tax (GST) regulations. The 55th GST Council meeting brought several important amendments that will impact taxpayers, especially as the financial year 2024-25 comes to an end. This blog provides a detailed overview of the latest GST changes, compliance deadlines, and key aspects like AATO, GST Amnesty Scheme, Composition Scheme, Goods Transport Agency (GTA) updates, and LUT filing requirements.

1. Key Highlights of the 55th GST Council Meeting

The 55th GST Council meeting, held in December 2024, introduced critical updates, including:

• Old and Used Vehicles: Key Updates from the 55th GST Council Meeting  The GST rate on old and used vehicles has been revised to 18%, applicable only on the supplier’s margin.
• Autoclaved Aerated Concrete Blocks: Key Updates from the 55th GST Council Meeting  A GST rate of 12% has been clarified for these products.
• Agricultural Produce: Green/dried pepper and raisins supplied by agriculturists are now exempt from GST.
• Packaged Goods: Key Updates from the 55th GST Council Meeting  Changes have been made to the definition of packaged goods to align with retail sales regulations.
• Popcorn Classification: Different GST rates apply: 5%, 12%, and 18% depending on the type.
• RBI-Regulated Payment Aggregators: These entities are now exempt from GST, except for payment gateways.

2. Understanding Annual Aggregate Turnover (AATO) and Its Importance

Annual Aggregate Turnover (AATO) includes total turnover across all GSTINs under a single PAN. It is crucial for businesses as:

• It determines GST registration requirements.
• It affects eligibility for the Composition Scheme.
• It decides tax filing obligations and applicable rates.

https://www.gst.gov.in/

Why is AATO Checking Important?

• Businesses must verify their AATO annually to avoid compliance issues.
• If AATO exceeds Rs. 20 lakh (for service providers) or Rs. 40 lakh (for traders/manufacturers), GST registration is mandatory.
• The GST portal provides an auto-generated AATO, which must be checked for accuracy.

3. GST Amnesty Scheme 2025

To encourage businesses to clear outstanding GST dues, the government has introduced an Amnesty Scheme:

• Deadline for Outstanding GST Dues: March 31, 2025.
• Form Submission Due Date: June 30, 2025.
• Benefits: Waiver or reduction of late fees and penalties for past non-compliances.

Taxpayers should take advantage of this scheme to regularize their filings and avoid further penalties.

4. Important GST Compliance Deadlines for FY 2024-25

As the financial year 2024-25 ends, businesses must adhere to the following deadlines:

• Filing of Letter of Undertaking (LUT): Key Updates from the 55th GST Council Meeting  March 31, 2025, for FY 2025-26.
• Opting for the Composition Scheme: Key Updates from the 55th GST Council Meeting  Between February 4 and March 31, 2025 (via Form CMP-02).
• Annual Return (GSTR-9 & GSTR-9C): Due by December 31, 2025.
• GST Payment and GSTR-3B Filing: Monthly/quarterly basis as per turnover.

5. GST Composition Scheme: Opting In and Out

The GST Composition Scheme offers simplified tax compliance for small businesses with turnover below Rs. 1.5 crore. Here’s how businesses can opt in or out:

Opting In (For FY 2025-26)

• Eligible taxpayers can file Form CMP-02 on the GST portal.
• Application window: February 4 to March 31, 2025.
• Composition dealers pay GST at lower rates and file quarterly returns (GSTR-4).

Opting Out (Available from April 1, 2025)

• Businesses exceeding the turnover limit or choosing to pay taxes under the regular scheme can opt out.
• Necessary intimation must be filed on the GST portal to avoid penalties and compliance issues.

6. Goods Transport Agency (GTA) Updates for 2025

Changes in Goods Transport Agency (GTA) services include:

• 0% GST Rate: Transport of used household goods for personal use and vehicle hiring to a GTA now exempt.
• Changes in Taxability: Services by unregistered persons, earlier exempt, are now taxable (specific notifications awaited).

Businesses using transport services must check their GST applicability to avoid tax liabilities.

7. Letter of Undertaking (LUT): Filing Due Date and Importance

An LUT allows exporters to supply goods/services without paying IGST. Key points:

• Due Date for FY 2025-26: March 31, 2025.
• Applicability: Mandatory for exporters to avoid upfront GST payments.
• Filing Process: Submit LUT on the GST portal before the deadline to ensure uninterrupted export operations.

Conclusion

Staying compliant with the latest GST regulations is essential for businesses to avoid penalties and streamline tax processes. Key Updates from the 55th GST Council Meeting  The 55th GST Council meeting introduced several updates, and as FY 2024-25 concludes, businesses must ensure timely compliance with filing deadlines, AATO verification, GST Amnesty Scheme benefits, and Composition Scheme selection. Keep track of these changes to manage GST obligations efficiently in 2025.

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