Taxationmitra

India's GST Council has approved major "𝗡𝗲𝘅𝘁 𝗚𝗲𝗻 𝗚𝗦𝗧 𝗥𝗲𝗳𝗼𝗿𝗺𝘀," reducing GST slabs to just 5% and 18% (with certain items at a higher "sin" rate) effective from September 22, 2025, with an estimated revenue loss of Rs 93,000 crore due to these tax cuts.

➡️ 𝗞𝗲𝘆 𝗚𝗦𝗧 𝗦𝗹𝗮𝗯 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 :

The four-tier system (5%, 12%, 18%, 28%) has been replaced with a two-tier structure: 5% (merit/essential items) and 18% (standard rate).

A special 40% tax rate applies to sin and luxury goods (like to***co, premium automobiles, etc.).

Most items previously taxed at 12% will move to 5%, and nearly all 28% items will shift to 18%.

➡️ 𝗟𝗶𝘀𝘁 𝗼𝗳 𝗜𝘁𝗲𝗺𝘀 𝗚𝗲𝘁𝘁𝗶𝗻𝗴 𝗖𝗵𝗲𝗮𝗽𝗲𝗿 :

5% slab: Most daily-use items such as hair oil, shampoos, toothbrushes, soap, tableware, kitchenware, cycles.

Essential food items: namkeen, pasta, sauces, instant noodles, and Indian breads (roti, paratha, chena, paneer, some at 0%).

18% slab: Several consumer durables earlier taxed at 28% (air conditioners, TVs, small cars, motorcycles ≤350cc).

Reform Rationale and Revenue Estimates
The reforms aim to benefit the common man, simplify compliance, and reduce classification disputes.

Revenue loss from rate cuts is pegged at approx. Rs 93,000 crore for Centre and States, though a partial offset (~Rs 45,000 crore) is expected from the hiked "sin tax" on harmful/luxury goods.

Historic evidence from earlier GST rate cuts shows short-term revenue dips but potential for long-term buoyancy due to greater compliance and consumption.

➡️ 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 & 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝘀 :
New rates effective from September 22, 2025.

Reforms also focus on technological integration: pre-filled returns, streamlined registration, and automated refunds for lower compliance burden.

➡️ 𝗜𝗺𝗽𝗮𝗰𝘁𝗲𝗱 𝗦𝗲𝗰𝘁𝗼𝗿𝘀 :
Agriculture, textiles, FMCG, food processing, consumer durables, healthcare, and MSMEs are expected to benefit most from the rationalization.

This overhaul marks the most significant indirect tax reform since GST’s rollout, aiming for both simplification & inclusiveness across the Indian economy.

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The Income Tax Department .official has made available the excel utilities for ITR-2 and 3 forms. This allows those with taxable , income, and more to begin filing their income tax returns (ITRs) starting today.

The extended ITR filing deadline for FY 2024-25 (AY 2025-26) is September 15, 2025. Previously only ITR-1 and ITR-4 were released (both online and excel utility) which enabled a limited set of taxpayers with specified income classifications to file their .

Do note that only the excel utilities have been released. That means taxpayers who plan to file their ITRs through the online e-filing portal will have to wait. The online filing mechanism is yet to be enabled. Soon this facility is likely to be enabled by income tax department which will be separately notified.

Source: incometax.gov.in
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Regards,
Team Taxationmitra
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Handling of Inadvertently Rejected records on - released on June 19, 2015

Source: gst.gov.in
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The Government has officially refused recent claims suggesting the imposition of Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions exceeding ₹2,000 - April 20, 2025.

Read full article here : https://www.linkedin.com/posts/taxationmitra_updates-taxation-taxationupdates-activity-7319675129842528256-TPoQ

Regards,
Team Taxationmitra
https://linktr.ee/Taxationmitra

Ram: ISD registration lena padega.

Shyam: To le lo.

Ram: But compliance cost badh jayega.

Shyam: To na lo.

Ram: But 1st April 2025 se to compulsory ho gaya hai.

Shyam: To le lo.

Ram: But analysis karna padega kis state mein lena hai. Too expensive.

Shyam: To na lo.

Ram: But bina ISD ke ITC kaise distribute hoga?

Shyam: Phir to le lo.

Ram: But manage kaise karenge?

Shyam: To na lo.

Ram: Par bina ISD ke credit ka loss ho sakta hai.

Shyam: To le lo.

Ram: Lekin naye rules samajhna bhi to padega?

Shyam: To na lo!!!!!

GST Expert at Taxationmitra: Lena hi padega!

From 1st April 2025, ISD compliance is mandatory under GST. No more debates—an office of a supplier receiving invoices for input services for or on behalf of distinct persons must distribute ITC through ISD.

Start the analysis today - compliance is not optional anymore!

Have you implemented ISD in your organisation?

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Keeping you informed and updated in simplified manner !

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The Mumbai ITAT ruled that an NRI from Singapore is not liable to pay tax in India on ₹1.35 crore short-term capital gains from mutual fund redemptions, under the India-Singapore tax treaty.

The tribunal clarified that mutual fund units aren't shares and fall under the treaty's 'residual clause', making gains taxable only in the investor's country of residence.

Read full article here : https://lnkd.in/gKJafFHw

Brought to you by the professional team of Taxationmitra ™

𝗗𝗲𝗰 𝟰𝘁𝗵, 𝟮𝟬𝟮𝟰 : 𝗔𝗱𝘃𝗶𝘀𝗼𝗿𝘆 𝗼𝗻 𝗺𝗮𝗻𝗱𝗮𝘁𝗼𝗿𝘆 𝗦𝗲𝗾𝘂𝗲𝗻𝘁𝗶𝗮𝗹 𝗙𝗶𝗹𝗶𝗻𝗴 𝗼𝗳 𝗚𝗦𝗧𝗥-𝟳 𝗥𝗲𝘁𝘂𝗿𝗻𝘀 𝗮𝘀 𝗽𝗲𝗿 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗡𝗼. 𝟭𝟳/𝟮𝟬𝟮𝟰 :-

As per Notification No. 17/2024-Central Tax, dated 27th September 2024, effective from the 01.11.2024 GSTR-7 filing has been made sequential from the October tax period.

Hence, GSTR-7 return is to be filed in chronological order, beginning with the return period of October 2024. It is pertinent to mention that for a month in which no deduction have been made, deductors need to file NiL return for the same month.

It is to inform that following changes have been introduced in the return filing process for GSTR-7 with effect from 01.11.2024 onwards.

👉 What is Form GSTR-7 ?
- A return filed by those who deduct tax while making/crediting payments to suppliers for inward supplies received.
- Due Date: 10th of the following month.

👉 What’s New ?
- As per Notification No. 17/2024, sequential filing is mandatory from 01.11.2024.
- Start with October 2024 and file returns in order.

👉 Key Points
- Nil returns must be filed even if no deductions are made in a month.
- Ignore older FAQs stating sequential filing isn’t mandatory—they’re now obsolete.

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𝗦𝘂𝗺𝗺𝗮𝗿𝘆 𝗼𝗳 𝗔𝗱𝘃𝗶𝘀𝗼𝗿𝘆 𝗳𝗼𝗿 𝗙𝗼𝗿𝗺 𝗚𝗦𝗧 𝗗𝗥𝗖-𝟬𝟯𝗔

𝗣𝗿𝗼𝗯𝗹𝗲𝗺: Some taxpayers mistakenly paid their GST demands using Form DRC-03 instead of the intended "Payment towards demand" option. This caused the payment to register, but the demand remained open in their electronic records.

𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻: The government introduced a new form, GST DRC-03A, to allow taxpayers to link these payments with the correct demand orders.

𝗪𝗵𝗼 𝗰𝗮𝗻 𝘂𝘀𝗲 𝗶𝘁: Taxpayers who used Form DRC-03 with "Voluntary" or "Others" as the payment cause.

𝗛𝗼𝘄 𝗶𝘁 𝘄𝗼𝗿𝗸𝘀: Fill in the ARN (reference number) of your DRC-03 form and the corresponding demand order number. The system will automatically populate the details and adjust your liability ledger.

𝗙𝗼𝗿 𝗺𝗼𝗿𝗲 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻:

Detailed Advisory Link : https://www.gst.gov.in/newsandupdates/read/544

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Further, If you need any technical help in GST please feel free to mail us at [email protected]

Kind Regards
Team 𝗧𝗮𝘅𝗮𝘁𝗶𝗼𝗻 𝗠𝗶𝘁𝗿𝗮
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𝗧𝗮𝘅 𝗳𝗿𝗮𝘂𝗱: ₹𝟮𝟱,𝟬𝟬𝟬 𝗚𝗦𝗧 𝗲𝘃𝗮𝘀𝗶𝗼𝗻 𝗯𝘆 𝟭𝟴,𝟬𝟬𝟬 𝗯𝗼𝗴𝘂𝘀 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝘂𝗻𝗰𝗼𝘃𝗲𝗿𝗲𝗱

Tax officials uncovered 18,000 fake companies involved in a GST tax evasion scheme worth around 24,550 crore during a recent nationwide drive. This effort was part of ongoing government action to curb fake registrations, following an earlier drive that detected 24,010 crore in evasion from 21,791 non-existent.

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𝗧𝗮𝘅 𝗳𝗿𝗮𝘂𝗱: ₹𝟮𝟱,𝟬𝟬𝟬 𝗚𝗦𝗧 𝗲𝘃𝗮𝘀𝗶𝗼𝗻 𝗯𝘆 𝟭𝟴,𝟬𝟬𝟬 𝗯𝗼𝗴𝘂𝘀 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝘂𝗻𝗰𝗼𝘃𝗲𝗿𝗲𝗱 🔍

Tax officials uncovered 18,000 fake companies involved in a GST tax evasion scheme worth around 24,550 crore during a recent nationwide drive. This effort was part of ongoing government action to curb fake registrations, following an earlier drive that detected 24,010 crore in evasion from 21,791 non-existent.

📌 Follow for more Taxation updates keeping you informed and updated in simplified manner !

We are now on whatsapp where we are more active. So please join us on our Whatsapp Channel: https://tinyurl.com/Taxationmitra

𝗖𝗕𝗜𝗖 𝗚𝘂𝗶𝗱𝗲𝗹𝗶𝗻𝗲𝘀 𝗳𝗼𝗿 𝗖𝘂𝘀𝘁𝗼𝗺 𝗢𝗳𝗳𝗶𝗰𝗲𝗿𝘀 👮

CBIC has released Instruction No. 27/2024-Customs to Balance Tax Evasion Investigations with Ease of Doing Business. Here are the key directives for Custom Officers-

👉 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝗲𝗿 𝗢𝘃𝗲𝗿𝘀𝗶𝗴𝗵𝘁
👉 𝗣𝗿𝗲-𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
👉 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝘁 𝗮𝗻𝗱 𝗥𝗲𝘀𝗽𝗲𝗰𝘁𝗳𝘂𝗹 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵
👉 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝘁 𝗗𝗼𝗰𝘂𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗛𝗮𝗻𝗱𝗹𝗶𝗻𝗴
👉 𝗖𝗹𝗮𝗿𝗶𝘁𝘆 𝗮𝗻𝗱 𝗙𝗮𝗶𝗿𝗻𝗲𝘀𝘀
👉 𝗖𝗹𝗼𝘀𝘂𝗿𝗲 𝗣𝗿𝗼𝘁𝗼𝗰𝗼𝗹𝘀
👉 𝗙𝗮𝗰𝗶𝗹𝗶𝘁𝗮𝘁𝗶𝗻𝗴 𝗩𝗼𝗹𝘂𝗻𝘁𝗮𝗿𝘆 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀
👉 𝗔𝗱𝗱𝗿𝗲𝘀𝘀𝗶𝗻𝗴 𝗚𝗿𝗶𝗲𝘃𝗮𝗻𝗰𝗲𝘀

Read full details on LinkedIn : https://tinyurl.com/49rdt3vz

This balanced approach aims to uphold robust compliance while supporting smooth business operations in the import/export sector.

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𝗠𝗔𝗝𝗢𝗥 𝗚𝗦𝗧 𝗨𝗣𝗗𝗔𝗧𝗘 𝗙𝗥𝗢𝗠 𝟭𝘀𝘁 𝗡𝗢𝗩 𝟮𝟬𝟮𝟰.

Starting from 1st November 2024, 𝗮 𝗻𝗲𝘄 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗿𝘂𝗹𝗲 𝟰𝟳𝗔 is coming into effect 𝗳𝗼𝗿 𝗦𝗲𝗹𝗳 𝗜𝗻𝘃𝗼𝗶𝗰𝗶𝗻𝗴 𝗶𝗻 𝗰𝗮𝘀𝗲𝘀 𝗼𝗳 𝗥𝗲𝘃𝗲𝗿𝘀𝗲 𝗖𝗵𝗮𝗿𝗴𝗲 𝗠𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺 (𝗥𝗖𝗠).

Under the Finance Act 2024 (Part 2) and Notification 20/2024, all GST-registered recipients liable under RCM must issue self-invoices within 30 days of supply receipt.

𝗣𝗿𝗲𝘃𝗶𝗼𝘂𝘀𝗹𝘆, there was no clear time limit, leading to confusion. This change aims to bring consistency and ensure timely tax compliance.

Key Points:
✅ New 30-day time limit for RCM self-invoices.
✅ Effective from 1st November 2024.

📍𝗗𝗼𝗻'𝘁 𝗳𝗼𝗿𝗴𝗲𝘁 𝘁𝗼 𝗿𝗲𝗽𝗼𝗿𝘁 𝗦𝗘𝗟𝗙 𝗜𝗡𝗩𝗢𝗜𝗖𝗘𝗦 𝗜𝗡 𝗚𝗦𝗧𝗥-𝟭 also from November onwards - Table 13 (Documents issued during the Period) because time limit of same has been notified now by CBIC!

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