What is the new GST rule for ISD?

The main new GST rule for Input Service Distributors (ISD) is that ISD registration became mandatory from April 1, 2025, for businesses receiving common input services for multiple GSTINs under the same PAN, making the distribution of Input Tax Credit (ITC) through the ISD mechanism compulsory, with non-compliance leading to penalties and denial of ITC. Key changes include extending ISD applicability to RCM services and clarifying procedures for credit/debit notes, requiring vendors to invoice the ISD GSTIN, and establishing pro-rata distribution rules based on turnover.

What is the new rule of GST ISD?

What's Changing from April 1, 2025 for ISD? Under the new GST rule effective from 1st April 2025, businesses operating multiple GST registrations under one PAN must compulsorily register as an Input Service Distributor (ISD)—a shift from the earlier optional requirement.

What are the new GST rules?

The New GST Rate Structure

The 12% and 28% slabs were eliminated and replaced with a new structure, which is now primarily 0%, 5%, 18%, and a 40% rate for luxury and “sin” goods. This change has impacted the pricing of many goods, including: Reduced to 18%: Items like electronic appliances and small cars.

What are the GST changes from April 1 2025?

Compliance & Procedural Changes

From April 1, 2025, Input Service Distributor (ISD) registration will be compulsory for businesses having multiple Goods & Services Tax Identification Numbers (GSTINs). The time limit for the validity of an E-Way bill will be 180 days, and it can be extended to 360 days.

What are the recent changes to the GST Act?

GST Reforms 2025: Key Changes in GST Rates Across Categories

Key categories have seen rate reductions: daily essentials have dropped from 12%/18% to 5%, agricultural equipment from 12%/18% to 5%, healthcare services to 5% or exempt, and education services are now fully tax-exempt.

ISD Registration mandatory for taxpayer having GST number in multiple state

What are the changes from 1st July 2025?

What are the new GST rules from July 2025? From 1st July 2025, GSTR-3B cannot be edited after filing. GSTR-1A is introduced for corrections, and GST returns older than 3 years from the due date cannot be filed.

What is the latest amendment of GST Act?

The Central Goods and Services Tax (Amendment) Bill, 2023 was introduced in Lok Sabha on August 11, 2023. It amends the Central Goods and Services Tax (CGST) Act, 2017. The Act provides for the levy and collection of CGST on the intra-state supply of goods and services.

What is changing from 1st April 2025?

Several changes are expected from April 1, 2025, including revisions to income tax rules and UPI framework updates. Major tax changes may include revised tax slabs, a rebate of up to Rs. 60,000, and updated TDS/TCS threshold limits.

Do we get an extra GST in February 2025?

The GST Holiday ended February 15. th

The federal government had announced a GST/HST break from December 14, 2024, to February 15, 2025. This temporary measure exempted the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) from a variety of essential items.

What are the changes to Table 12 in GST April 2025?

GST Network implemented Phase-III of Table 12 of GSTR-1 & GSTR-1A from April 2025 return period onwards. Accordigly, B2B and B2C supplies must be bifurcated in Table-12 of GSTR-1 for the HSN wise separately. No manual entry of HSN will be allowed as the drop down option is available to choose HSN code.

What is the GST circular for September 2025?

What was the decision in 56th GST council meeting? The long-discussed proposal for a two-tier GST structure has now been approved (and implemented starting from 22nd September 2025): 5% GST: Applicable to most essential and everyday goods and services. 18% GST: For higher-value products and services.

What are the basic rules of GST?

To every person who supplies goods and/or services of value exceeding Rs 20 lakh in a financial year. (Limit is Rs 10 lakh for some special category states). Compulsory registration for these. And GST must be paid when turnover exceeds Rs 20 lakh (Rs 10 lakh for some special category states).

What is the new limit of GST?

Currently, the GST Exemption Limit is set at Rs. 40 lakhs for goods and Rs. 20 lakhs for services. Businesses with annual revenues below these limits are not mandated to register for GST; however, they may opt to do so voluntarily.

What are the changes in ISD from April 2025?

implemented from April 01, 2025

ISD registration becomes mandatory with the following key aspects: (i) ITC available for distribution to be distributed in the same month. (ii) ITC distributed should not exceed the ITC available for distribution. (iii) Both eligible and ineligible ITC needs to be distributed separately.

What is ISD in GST in simple words?

Input Service Distributor (ISD) means an office of the supplier of goods or services or both which receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax (CGST), State tax (SGST)/ Union territory tax (UTGST) or integrated tax ( ...

Is GST still 9% in 2025?

For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.

Who is eligible for GST in 2025?

GST Voucher – Cash

You must be aged 21 and above in 2025; Your Income Earned in 2023 as assessed by IRAS (Assessable Income (AI) for the Year of Assessment (YA) 2024) must not exceed $39,000; The Annual Value (AV) of your home (as indicated on your NRIC) as at 31 December 2024 must not exceed $31,000; and.

What is GST credit, and how does it work?

The goods and services tax/harmonized sales tax (GST/HST) credit is a tax-free quarterly payment for individuals and families with low and modest incomes to help offset the GST or HST they pay. It may also include payments from provincial and territorial programs.

What is the one time payment for 2025?

As 2025 begins, many Canadians are closely watching their bank accounts for signs of additional financial support. One payment drawing attention is the CRA $680 one-time benefit, which is widely expected to be issued through direct deposit on January 8, 2025.

What changes are coming in April 2025?

From 6 April 2025, Employers' National Insurance Contributions (NIC) will increase from 13.8% to 15%, while the threshold - the point at which employers begin to pay NI on an individual's salary - will be reduced from £9,100 to £5,000.

What are the changes in GST e invoicing April 2025?

e-Invoice Time Limit: From April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of Rs.10 crore+ must upload e-invoices to the Invoice Registration Portal (IRP) within 30 days. It reduces the chances of fake GST invoices, allowing only genuine input tax credit claims.

What is the GST collection in April 2025?

Monthly GST collection had touched a record high of ₹2.37 lakh crore in April 2025. In May 2025, it was at ₹2.01 lakh crore.

Is GST date extended for July 2025?

The update was notified by the CBIC vide CGST notification no. 17/2025 dated 18th October 2025. Due to the incessant rains in various parts of Maharashta, the government has extended GSTR-3B due date for July 2025 from 20th August to 27th August 2025.

What is the GST relief payment 2025?

You will get your annual GST/HST credit, which was calculated using information from your 2024 tax return, in four payments. The CRA will make these payments on the 5th day of July and October 2025, and of January and April 2026.

What is the new GST update?

GST 2.0: Diwali 2025 Reforms – A Game-Changer for Consumption? The government has announced a major overhaul in the GST system, aimed at simplifying tax rates. The new GST structure will reduce the number of tax slabs to just two — 5% and 18% — replacing the current multi-tier system.