Instruction No 06/2025-GST, Dated 3rd October 2025
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Instruction No 06/2025-GST, Dated 3rd October 2025

 

90% of refund claims for zero-rated supplies to be sanctioned provisionally based on system-generated risk evaluation.

Proper officer may deny provisional refund on a case-by-case basis with written reasons and proceed with detailed scrutiny.

Certain registered persons notified under Section 54(6) are ineligible for provisional refunds on zero-rated supplies.

Refunds categorized as “low-risk” by the system will receive 90% provisional refund post FORM GST RFD-02.

Proviso to Rule 91(2) to be used sparingly; routine scrutiny should not block provisional refunds

If excess refund is provisionally sanctioned, FORM GST RFD-08 must be issued for recovery.

90% provisional refund allowed for IDS claims filed on or after 01.10.2025.

CGST Circular 253/10/2025 – GST, Dated 1st October 2025

 

The CBIC has withdrawn Circular No. 212/6/2024-GST dated 26th June 2024, which prescribed procedures for providing evidence of compliance under Section 15(3)(b)(ii) of the CGST Act. Consequently, taxpayers are no longer required to follow the earlier procedure.

GSTAT Launched: Unified National Forum for GST Dispute Resolution Unveiled in New Delhi

 

Union Finance Minister Smt. Nirmala Sitharaman formally inaugurated the Goods and Services Tax Appellate Tribunal (GSTAT) in New Delhi, describing it as a transformative step from “One Nation, One Tax, One Market” to “One Nation, One Forum for Fairness and Certainty.”

Emphasis on jargon-free decisions, digital filings, virtual hearings, and time-bound processes.

Aims to reduce litigation delays, improve cash flows, and boost confidence among MSMEs and exporters.

GSTAT offers a nationwide, independent platform for second-level GST appeals, ensuring consistency, transparency, and timely justice.

The newly launched GSTAT e-Courts Portal enables online appeal filing, case tracking, and virtual hearings. Staggered filing is allowed until 30 June 2026 to ease transition.

GSTN Advisory for Invoice-wise Reporting Functionality in Form GSTR-7 on portal

 

Vide Notification No. 09/2025 – Central Tax dated 11.02.2025, Form GSTR-7 has been amended requiring invoice-wise reporting of tax deducted at source (TDS).

This feature is now enabled on the GSTN portal and TDS deductors must report invoice-level details while filing GSTR-7 from September 2025 onwards, with the first due date being 10th October 2025.

Any issues can be raised via the Self-Service Portal on GSTN, with necessary details for resolution.

GSTN Advisory to file pending returns before expiry of three years

 

The Finance Act, 2023 (effective from 01.10.2023 via Notification No. 28/2023–CT dated 31.07.2023) has introduced a three-year time limit for filing GST returns.

From October 2025 tax period onwards, GSTN portal will block filing of returns older than 3 years from their due date. Taxpayers are advised to reconcile and file pending returns before expiry of this period to avoid being barred.

Click to download relevant Advisory

CGST Circular , Dated 23rd September 2025

 

The CBIC has clarified that for communications sent through its eOffice application, the system-generated “Issue number” (which can now be verified online at [verifydocument.cbic.gov.in](https://verifydocument.cbic.gov.in)) will itself be treated as the Document Identification Number (DIN). Hence, quoting a separate DIN is no longer required for such eOffice communications. However, DIN will continue to be mandatory for all other communications not sent through eOffice public option or not bearing a verifiable Reference Number (RFN) from the GST portal.

GSTN Advisory for New Changes in Invoice Management System (IMS)

 

1. Pending Action for Records

Taxpayers can now keep certain records pending for one tax period only (monthly or quarterly, as applicable).

Records eligible for pending status:

Credit Notes (CN) / upward amendment of CN

Downward amendment of CN (where original CN rejected)

Downward amendment of Invoice / Debit Note (DN) (if original accepted & 3B filed)

ECO-document downward amendment (if original accepted & 3B filed)

2. Declaring ITC Reduction Amount

The IMS provides a facility for taxpayers to declare and reverse ITC only to the extent actually availed. No reversal is needed if ITC was not claimed, and partial reversal applies only for the portion availed. The system allows full or partial reversal, including past cases, for the specified records.

3. Option to Save Remarks

Taxpayers can add optional remarks while rejecting/keeping records pending.

Remarks will be visible in GSTR-2B and supplier’s outward supplies dashboard

4. Important Dates

Effective from October tax period.

Due date for keeping records pending is based on supplier’s communication date/tax period.

5. Prospective Application

Applicable only for records filed by suppliers after rollout.

Taxpayers should review carefully before filing returns.

CGST Notification , Dated 17th September 2025

 

Seeks to notify the Central Goods and Services Tax (Third Amendment) Rules 2025.

Seeks to notify category of persons under section 54(6).

Seeks to exempt taxpayer with annual turnover less than Rs 2 Crore from filing annual return.

Seeks to notify clauses (ii), (iii) of section 121, section 122 to section 124 and section 126 to 134 of Finance Act, 2025 to come into force.

CGST (Rate) Notification , Dated 17th September 2025

 

Seeks to supersede Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017.

Seeks to supersede Notification No. 2/2017- Central Tax (Rate) dated 28.06.2017

Seeks to amend Notification No. 3/2017- Central Tax (Rate) dated 28.06.2017

Seeks to amend Notification No. 8/2018- Central Tax (Rate) dated 25.01.2018.

Seeks to amend Notification No. 21/2018- Central Tax (Rate) dated 26.07.2018.

Seeks to notify GST rate for bricks.

Seeks to amend Notification No 11/2017 - Central Tax (Rate) dated 28th June, 2017 to implement the recommendations of the 56th GST Council.

Seeks to amend Notification No 12/2017-Central Tax (Rate dated 28th June, 2017 to implement the recommendations of the 56th GST Council.

Seeks to amend Notification No. 3/2017- Central Tax (Rate) dated 28.06.2017

IGST (Rate) Notification , Dated 17th September 2025

 

Seeks to supersede Notification No. 1/2017- -Integrated Tax (Rate) dated 28.06.2017.

Seeks to supersede Notification No. 2/2017- -Integrated Tax (Rate) dated 28.06.2017.

Seeks to amend Notification No. 3/2017- -Integrated Tax (Rate) dated 28.06.2017.

Seeks to amend Notification No. 9/2018- -Integrated Tax (Rate) dated 25.01.2018

Seeks to amend Notification No. 22/2018- -Integrated Tax (Rate) dated 26.07.2018.

Seeks to notify GST rate for bricks.

Seeks to amend Notification No 8/2017- Integrated Tax (Rate), dated 28th June, 2017 to implement the recommendations of the 56th GST Council.

Seeks to amend Notification No 9/2017-Integrated Tax (Rate), dated 28th June, 2017 to implement the recommendations of the 56th GST Council.

Seeks to amend Notification No 14/2017-Integrated Tax (Rate), dated 28th June, 2017 to implement the recommendations of the 56th GST Council.

Clarification on treatment of secondary or post-sale discounts under GST

 

  Circular 251/08/2025-GST clarifies tax treatment under GST of secondary or post-sale discounts offered by manufacturers to dealers/distributors. The clarification is in respect of ITC on Financial/Commercial Credit Notes, Post-Sale Discounts as Consideration for Dealer’s Supply to End Customer, Post-Sale Discounts as Consideration for Promotional Services.

Click to view / download circular brief details of clarification

Monitoring of Price Data pre and post GST rate rationalization w.e.f. 22/09/2025

 

  Ministry of Finance has vide communication Reference F. No. -190349/43/2025-TRU dated 09/09/2025 issued a directive to all Principal Chief Commissioners and Chief Commissioners of CGST zones regarding the monitoring of Maximum Retail Price (MRP) changes following the GST rate reduction effective from September 22, 2025.

Click to view / download the directive and list of commodities monitored

Permission to declare revised MRP, pursuant to GST Rate revision, on unsold stock

 

  The Department of Consumer Affairs has vide Circular Reference F. No. I-10/14/2020-W&M dated 09.09.2025 permitted display of revised MRP on unsold stock as on the date of revision of GST Rates pursuant to the decision in the 56th GST Council Meeting held on 03/09/2025.

Click to download Circular reference F. No. I-10/14/2020-W&M dated 09.09.2025

GSTN Advisory to file pending returns before expiry of three years

 

  As per the Finance Act, 2023, effective 1st October 2025, taxpayers will not be able to file pending GST returns that are older than three years from their original due date.

  This restriction applies to all major returns such as GSTR-1, 3B, 4, 5, 6, 7, 8, and 9/9C.

  For example, returns like GSTR-1 and 3B of August 2022, GSTR-4 of FY 2021-22, and GSTR-9/9C of FY 2020-21 will be barred from filing from October 2025 onwards.

GST 2.0 unveiled

 

  The 56th meeting of the GST Council, chaired by Union Finance Minister Smt. Nirmala Sitharaman has recommended Next-Gen GST reforms, with focus on reduction of GST Rate of tax and ensuring ease of doing business. The reduction of GST rates of tax is expected to bring significant relief to citizens by making medicines, healthcare, agricultural goods, and essential services more affordable, while also reducing costs in sectors like automobiles, cement, textiles, fertilizers, renewable energy, and hospitality.

  The focus of procedural amendments recommended by the GST Council is aimed at simplifying Compliance.

Click to read / download details of GST 2.0

GSTN Advisory on System Enhancement for Order-Based Refunds

 

  Refunds could be claimed only if:

  Cumulative Demand ID balance was negative.

  Status of Demand ID was “Refund Due”.

  Issue: Taxpayers could not claim refunds where minor heads showed negative balances but the overall balance was zero/positive

  Refunds can be claimed irrespective of Demand ID status

  Refunds allowed even if cumulative balance is zero/positive, as long as a minor head shows negative balance.

  Only negative balances auto-populated in refund application (Form RFD-01).

  Order number suggestions: System suggests latest demand order linked to the negative balance (e.g., order-in-original, rectification, appellate order).

  Tooltips added: Guidance provided for entering Order No. and Demand ID.

CGST Notification 12/2025 , Dated 20th August 2025 - GSTR-3B Due Date for July 2025 Extended to 27th August in Some Selected Districts

 

  The due date for filing GSTR-3B for July 2025 has been extended to 27th August 2025 for registered persons in Mumbai (City & Suburban), Thane, Raigad, and Palghar districts of Maharashtra, providing compliance relief under the CGST Act, 2017.

GSTN Advisory on regarding GSTR-3A Notices issued for non-filing of form GSTR 4 to cancelled Composition Taxpayers

 

  Under Section 39(2) of the CGST Act, 2017 and Rule 68 of CGST Rules, 2017, Form GSTR-3A notices are issued for non-filing of Form GSTR-4.

  Due to a technical glitch, GSTR-3A notices for non-filing of GSTR-4 were mistakenly issued to some taxpayers, including those whose registrations were cancelled before FY 2024–25 or who had already filed the return.

  The issue is being addressed, and no action is required from affected taxpayers in such cases.

  For other concerns, grievances can be raised via the GST Self-Service Portal.

GSTN Advisory on Enhancements in GST System for Secure and Transparent ASP/GSP Access Management

 

  The GST System is introducing new features to enhance data security and provide greater transparency to taxpayers who use Application Suvidha Providers (ASP) via GST Suvidha Providers (GSP).

  Taxpayers will receive notifications each time an ASP gains access using OTP-based consent.

  The authorized signatory will be informed via email and/or SMS.

  Notifications will include the ASP and GSP names, consent date/time, and validity period.

  Implementation date will be announced through official advisories.

CGST Circular 250/07/2025-GST, Dated 24th June, 2025

 

  This circular clarifies the mechanism for review, revision, and appeal in respect of Orders-in-Original (O-I-Os) passed by Common Adjudicating Authorities (CAAs) appointed for adjudicating SCNs issued by DGGI. It confirms that the jurisdictional Principal/Commissioner of Central Tax, under whom the CAA is posted, shall act as the Reviewing Authority, Revisional Authority, and also represent the department in appeals. Appeals against such orders will lie before the Commissioner (Appeals) having jurisdiction over that Commissionerate.

 

 
 

 

Recent Advance Ruling

Telangana AAR - NOORI TRAVELS

 

The car was supplied in July 2023.The applicant opted for a lower tax rate on their supplies. By choosing the lower tax rate, the applicant forfeited the right to claim input tax credit (ITC) on purchases of goods and services. Therefore, the applicant is not eligible to claim ITC for the purchase of the car under GST regulations.

Telangana AAR - VERSATILE AUTO COMPONENTS (P) LTD

 

The applicant M/s. Versatile Auto Components Pvt Ltd is a manufacturer of low speed electric two wheeler (below 250 Watts/0.25 KV) and spares & accessories for the same. The applicant would like to get clarification regarding which HSN code and GST rate for their products electrically operated vehicles, including two & three wheeled electric / motor vehicles and Electrical & mechanical spare parts of electric vehicle.

It is ruled that

(1) all electrically operated vehicles including three wheeled electric vehicles are classified under HSN 8703 and liable to 5% Tax under S.No. 242A of Schedule –I of Notification No. 01/2017 dt:28.06.2017 as amended by notification 12/2019 dt:31.07.2019 with effect from 01.08.2019

(2) As the goods “Electrical and Mechanical spare parts of electrical vehicles” does not have any reference under chapter 87 they fall under the residual entry S.No 453 of Schedule-III of Notification no. 01/2017 dt:28.06.2017 i.e., “Goods which are not specified in Schedule I, II, IV, V or VI” falling in any chapter of HSN and liable to 18% Tax

Telangana AAR - SAI SERVICE (P) LTD

 

The Applicant M/s. Sai Service Pvt Limited is engaged in the business of supply of automobiles. As a part of its day-to-day business, the Applicant requires certain vehicles for demonstration purpose in the showrooms and are used for providing test drives to its potential customers, in order for them to understand the look and feel of the vehicle. The demo vehicle/s will be registered in the name of the company/dealership and can be retained as a demo / test vehicle only for (2) years. After (2) years the vehicle can be used in workshop as a replacement vehicle or sold with the written approval of the vendor company.

The demo vehicle/s is categorized as an asset and capitalized in the books without claiming any depreciation on the input tax component. Under this factual background the applicant wanted a ruling on whether the applicant is entitled to avail the input tax credit under capital goods of the tax charged on the supply of motor vehicles used for demonstration purpose.

It is ruled that if the applicant is making further supply of such demo vehicle he is eligible to claim ITC of the tax charged on such demo vehicles. However, if the applicant decides to keep the demo vehicle for use in their workshop as a replacement vehicle as per the test vehicle policy of the car manufacturer / vendor he is not eligible for ITC.

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