The financial year 2025 has brought several key changes in GST (Goods and Services Tax) and Income Tax regulations. Whether you’re a student, small business owner, or finance professional, staying updated is essential to ensure compliance and avoid penalties. In this post, we break down the latest updates and what they mean for you.
🔹 Key GST Updates (2025)
1. New Threshold Limit for GST Registration
The turnover threshold for GST registration has been revised:
- ₹40 lakhs for goods
- ₹20 lakhs for services
States may opt for different limits, so always check your local notification.
2. Mandatory E-Invoicing Extended
E-invoicing is now mandatory for businesses with turnover above ₹5 crore, effective from April 1, 2025. It’s crucial to integrate your billing software with the government e-invoice portal.
3. Revised GSTR-1 and GSTR-3B Format
The government has simplified the return filing forms. GSTR-1 now allows easier reporting of B2B and B2C sales. GSTR-3B auto-populates more fields to reduce human errors.
4. Strict Input Tax Credit (ITC) Rules
Only matching invoices on the GSTR-2B portal will be allowed for ITC. Businesses must reconcile their purchases monthly to avoid credit loss.
🔹 Latest Income Tax Updates (2025)
1. Standard Deduction Increased
The standard deduction under the new tax regime has been increased to ₹75,000 for salaried individuals and pensioners — a major relief for middle-class taxpayers.
2. New Tax Slabs Under New Regime
The revised income tax slabs have been adjusted to promote the New Regime, which now offers better exemptions and lower rates for most taxpayers.
3. AIS & TIS Made Mandatory for ITR Filing
The Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) are now compulsory for cross-verification during income tax return filing. Ensure you download them from your portal before filing.
4. E-verification Timeline Reduced
Income tax returns must now be e-verified within 7 days of submission, or they will be considered invalid. Timely verification is critical.
