GST in 2025: Key Updates, Challenges, and What Businesses Must Know

Introduction

The Goods and Services Tax (GST) continues to evolve each year. In 2025, the Indian government has introduced several key reforms and policy updates to simplify compliance and expand the tax base. Here's a point-by-point look at the latest GST scenario.

 GST Council’s Key Decisions in 2025

• Proposal to merge 12% and 18% slabs to simplify the tax structure
• Inclusion of new digital services and gig economy players under GST
• Greater autonomy to states in handling compliance issues

e-Invoicing Mandate

• e-Invoicing is now mandatory for businesses with turnover above ₹5 crore
• Real-time invoice reporting is now integrated with the GST portal
• Automated reconciliation features reduce manual errors

 GSTN Portal Enhancements

• Improved dashboard and user interface for ease of navigation
• AI-powered error detection for returns and filings
• UPI-based tax payment options added for faster processing

4. Sector-Specific GST Changes

• Real Estate: Input Tax Credit (ITC) norms revised for under-construction projects
• E-commerce: Stricter TCS compliance and return matching rules enforced
• Healthcare: Essential medical equipment brought under lower tax slabs

5. Compliance Challenges in 2025

• ITC delays due to supplier-side non-compliance
• Complexity in return filings for SMEs without automation
• Confusion over inter-state transaction tax treatments

6. What Businesses Should Focus On

• Monitor updates from the GST Council and GST portal regularly
• Automate GST filing and reconciliation wherever possible
• Train accounting staff on new GST rules
• Perform regular internal audits to avoid penalties