As we step into the new financial year, the Goods and Services Tax (GST) system in India has undergone several important changes. These updates, effective from April 1, 2025, aim to simplify compliance, increase transparency, and bring more businesses under the regulatory net.

Whether you’re a small business owner, an accountant, or a compliance officer, staying informed about these changes is essential to avoid penalties and ensure smooth operations.

Major GST Changes Effective April 1, 2025

🔹 1. ISD Registration Now Mandatory for Businesses with Multiple GSTINs

If your business operates under multiple GST registrations (GSTINs) tied to the same PAN, you’re now required to register as an Input Service Distributor (ISD). This change ensures that Input Tax Credit (ITC) is correctly distributed among your branches, avoiding misuse or confusion in claiming credits.

🔹 2. E-Invoicing Threshold Lowered to ₹1 Crore

The government has significantly reduced the e-invoicing threshold from ₹10 crore to ₹1 crore turnover. This means that even smaller businesses must now generate e-invoices for B2B transactions. It’s a push towards digital tax governance and better transparency in invoicing.

🔹 3. Revised GST Rates for Specific Sectors

  • Used Car Market: The GST on used cars has been increased from 12% to 18%, impacting the second-hand vehicle trade.

  • Hotel Industry: The earlier “declared tariff” system has been scrapped, and now GST is calculated based on the actual amount charged to the customer.

These changes are likely to affect pricing and invoicing methods in these industries.

🔹 4. Fresh Invoice Series Required from FY 2025-26

Starting April 1, 2025, businesses must start a new invoice series for the financial year. This ensures that invoice numbering is sequential and avoids confusion during audits or reconciliations.

🔹 5. Multi-Factor Authentication (MFA) Made Mandatory

To tighten security on the GST portal, the government has made MFA mandatory for all users. Businesses should ensure that their logins are secured with MFA to avoid access issues or security breaches.

🔹 6. Anti-Profiteering Applications Deadline Set

A sunset clause has been introduced for GST anti-profiteering applications. No new cases will be accepted after April 1, 2025. This signals a winding down of older profiteering investigations.

🔹 7. New Compliance Rules for SEZ Units

Special Economic Zone (SEZ) units now have additional compliance requirements:

  • Filing quarterly GST compliance reports

  • Following new refund procedures

Businesses operating in SEZs must align their internal processes accordingly.

What You Should Do Immediately

Here are some action points to ensure you’re compliant with the new GST regulations:

  • Apply for ISD registration if you have multiple GSTINs.

  • Begin using e-invoicing if your turnover exceeds ₹1 crore.

  • Adjust your billing and pricing based on revised GST rates.

  • Start a new invoice series from April 1, 2025.

  • Enable MFA on your GST portal login for secure access.

  • SEZ units must gear up for new filing and refund norms.

Final Thoughts

These updates are designed to strengthen India’s GST framework and bring more businesses into the digital tax ecosystem. While some changes might feel burdensome at first—especially for small businesses—they also offer a chance to improve transparency and streamline operations.

Early preparation is key. Don’t wait for a notice to start making changes. Talk to your tax advisor, train your team, and align your systems with the latest GST norms to ensure a compliant and smooth financial year ahead.