Budget 2025: FM proposes these Key GST Regime Changes
Even though focus shifted to Income Tax, the Union Budget carries its fair share of proposals for GST law amendments also.
FM proposes – GST Regime Changes – Union Budget 2025 – Budget 2025 India – Budget 2025 Highlights – Budget 2025 News – Budget 2025 Updates – taxscan
FM proposes – GST Regime Changes – Union Budget 2025 – Budget 2025 India – Budget 2025 Highlights – Budget 2025 News – Budget 2025 Updates – taxscan
The Union Budget 2025 was presented by Union Finance Minister Nirmala Sitharaman today at the Lok Sabha, carrying a good amount of amendments to the Direct Tax regime and hinting at the New Income Tax Act also contains some major Goods and Services Tax- GST-Regime changes. Chaired by Speaker Om Birla, the Union Budget was off to a hectic start and was full of surprises to the middle class.
Here are the Key GST related changes proposed in the Union Budget: –
- A provision allowing Input Service Distributors to distribute input tax credit for inter-state supplies subject to reverse charge, effective from April 1, 2025.
- A new clause defining "Unique Identification Marking" for the implementation of the Track and Trace Mechanism.
- A provision for the reversal of corresponding input tax credit related to a credit note, if claimed, to reduce the supplier’s tax liability.
- A requirement for a 10% mandatory pre-deposit of the penalty amount for appeals before the Appellate Authority, applicable in cases where only a penalty is demanded and no tax demand is involved.
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- Penalties for violations of provisions related to the Track and Trace Mechanism.
- An amendment to Schedule III of the CGST Act, 2017, specifying that the supply of goods warehoused in a Special Economic Zone or Free Trade Warehousing Zone to any party before export clearance or to the Domestic Tariff Area will neither be considered a supply of goods nor services. No tax refund will be available for such transactions, effective from July 1, 2017.
- The inclusion of definitions for "Local Fund" and "Municipal Fund" as part of the definition of "local authority."
- New conditions and restrictions for filing returns.
These changes will come into effect on a date to be notified in coordination with the States, as per the recommendations of the GST Council, as outlined in the budget.
To Read the full text of the Finance Bill CLICK HERE
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