Category GST

One of the primary factors of India’s economy is the real estate and construction industry. In addition to providing infrastructure, housing, and commercial space, it also generates millions of employment nationwide. Nonetheless, tax laws have always had a significant impact on the industry. One of the most significant changes that altered the way the sector operates was the implementation of the Goods and Services Tax (GST) in 2017. Developers, contractors, and buyers have all been impacted by additional adjustments to GST rates and compliance requirements over time.

Pre-GST Scenario in Real Estate

Before GST, the real estate sector was subject to multiple taxes such as Value Added Tax (VAT), Service Tax, Central Sales Tax (CST), Excise Duty, and Entry Tax. Buyers of under-construction properties also had to pay VAT, service tax, registration charges, and stamp duty. Since VAT and stamp duty varied from state to state, there was no uniformity in taxation.

Developers faced cascading taxes, as many levies like CST and excise duty did not allow input credit. As a result, the cost of construction increased, and the burden was ultimately passed on to buyers. Transparency in pricing was limited, and disputes over double taxation were common.

GST and Its Impact

With GST, multiple indirect taxes were merged into a single framework. For the first time, there was uniformity in taxation across the country. This was seen as a major relief for developers and buyers.

• Under-construction properties: GST is levied since they are treated as a supply of services. Initially, the rate was 12%, but later it was reduced to 5% for non-affordable housing and 1% for affordable housing (without input tax credit).
• Ready-to-move properties: These continue to remain outside GST since the sale of completed property is neither a supply of goods nor services.
• Works contracts: Construction services provided to government authorities and infrastructure projects attract GST at 12% or 18%, depending on the type of contract.

Impact on Developers and Builders

For developers, GST has had mixed consequences.

Positive Effects:

• Multiple taxes like excise duty, CST, and entry tax were subsumed, simplifying compliance.
• Availability of input tax credit (ITC) on construction materials such as steel, paints, and tiles reduced overall costs.
• Logistics and procurement became easier due to a unified tax structure across states.

Challenges:

• The withdrawal of ITC for residential projects after April 2019 increased costs. Developers cannot claim credit for GST paid on raw materials like cement (28%) and steel (18%). This has reduced their profit margins.
• Compliance requirements such as monthly returns, matching of invoices, and the reverse charge mechanism (RCM) on certain transactions have increased paperwork for builders.
• Price adjustments became difficult as developers had to carefully calculate how much ITC benefit could be passed to buyers.

Impact on Buyers

For homebuyers, GST reforms brought both clarity and relief in certain cases.

• On under-construction properties, the effective tax burden is now lower compared to the pre-GST era when VAT and service tax together added around 6–7%.
• Ready-to-move-in flats remain free from GST, which is an advantage for buyers seeking completed properties.
• However, the non-availability of ITC for residential projects means developers often build GST costs into the property price, indirectly raising the cost for buyers.

Construction Companies and Infrastructure Projects

For construction companies engaged in government and private infrastructure projects, GST has streamlined operations. A uniform 18% GST on works contracts with ITC has made it easier to claim credit on inputs and services. At the same time, higher tax rates on key inputs like cement (28%) have increased costs.

Subcontractors, especially in government projects, are also affected by changes. The GST Council has revised works contract tax rates several times, most recently raising the rate on contracts involving earthwork from 12% to 18%. While ITC is available, the immediate cash outflow has become heavier for contractors.

Reverse Charge Mechanism (RCM)

One area where developers face additional costs is the reverse charge mechanism. If they procure goods or services from an unregistered supplier, they are liable to pay GST under RCM. This increases compliance and cash flow issues, particularly for small and medium developers.

Other Considerations: Stamp Duty and Registration

It is important to note that GST has not replaced stamp duty and registration charges. These continue to be levied by state governments and usually range from 5% to 7% of the property value. Since stamp duty is outside the scope of GST, buyers still face an additional cost burden.

Conclusion

India’s construction and real estate sectors have surely changed as a result of the tax and GST reforms. High input costs and restricted credit benefits continue to be problems, despite the fact that they have improved compliance and simplified the tax structure. It is critical for contractors, purchasers, and developers to adjust to the changing tax scenario. In the end, how well GST reforms work for this crucial area of the economy will depend on a well-rounded strategy that promotes both industry expansion and customer affordability.

Over the past two decades, India’s service sector has expanded rapidly and has become an important part of the economy. Some of the areas where this is most visible are personal care (salons, beauty parlors), fitness (gyms, yoga centers, wellness programs), and financial services (insurance and related products). These areas have been driven by changing lifestyles, income levels, and increasing awareness of health and financial well-being. In 2017, with the introduction of the Goods and Services Tax (GST), these services became part of a unified indirect tax system. Since then, the system has continued to evolve, and GST reforms from 22 September 2025 (GST 2.0) have significantly amended the taxation of these services.

GST on Salon and Beauty Parlour Services

Beauty and grooming services are highly popular across urban and semi-urban areas, covering offerings like haircuts, facials, spa treatments, and grooming packages.

• Tax Rate (Post-September 2025): These services fall under HSN Code 9997 and now attract 5% GST without input tax credit (ITC). Earlier, they were taxed at 18% with ITC. The new regime makes services cheaper for consumers, but businesses lose the ability to offset taxes paid on inputs.
• Impact on Businesses: Salons can no longer claim ITC on purchases such as cosmetics, furniture, rent, or equipment. This may slightly reduce their profit margins.
• Impact on Consumers: The direct tax rate reduction makes grooming services more affordable, though businesses may adjust pricing to account for the loss of ITC.

GST on Gym and Fitness Centre Services

The fitness industry in India has expanded rapidly, with gyms, yoga centers, and wellness services forming a major part of urban lifestyles.

• Tax Rate (Post-September 2025): Fitness services, including memberships, training programs, and wellness packages (HSN Code 999723), are now taxed at 5% without ITC, down from the earlier 18% with ITC.
• ITC Limitation: Gyms can no longer claim ITC on purchases like equipment, rent, or maintenance costs. This removes a key benefit they earlier enjoyed under the 18% regime.
• Impact on Consumers: Membership costs are expected to fall due to the lower tax rate, making fitness services more accessible to a wider audience.

GST on Insurance Services

Insurance plays a vital role in providing financial protection for individuals and businesses. The GST reforms of September 2025 brought major relief in this sector.

1. Life and Health Insurance (Individuals): Premiums for life and health insurance policies are now fully exempt from GST (0%), a significant change from the earlier 18% tax. For policyholders, this reduces the overall premium burden directly.
2. General/Commercial Insurance: Motor, property, and other forms of general insurance continue to be taxed, typically at 18%, unless specifically exempted.
3. Impact on Consumers: For individuals, the removal of GST from life and health insurance premiums makes financial protection more affordable.
4. Impact on Insurers: While customers benefit, insurers may face challenges in claiming ITC for costs like commissions or administration expenses, potentially impacting operational margins.

Common Impact of GST 2.0 on Service Sectors

1. Uniformity: The simplified slab structure (mainly 5% and 18%, with 40% for luxury/sin goods) has reduced complexity in service taxation.
2. Transparency: Service providers must issue GST-compliant invoices, ensuring accountability and reducing scope for under-reporting.
3. Consumer Relief: Essential lifestyle services like salons, gyms, and insurance have become more affordable due to lower or zero GST.
4. ITC Restrictions: For salons and gyms, the loss of ITC means businesses must balance reduced margins with increased customer affordability.

Practical Lessons and Way Forward

The taxation of salons, gyms, and insurance demonstrates how GST 2.0 attempts to strike a balance between compliance and consumer welfare.

• For Businesses: Proper registration and compliance remain crucial. With ITC restrictions, businesses need better cost management to stay competitive.
• For Consumers: Awareness about revised GST rates ensures they are not overcharged.
• For Policymakers:The exemption of insurance and rate cuts for wellness services shows sensitivity to public needs. Future adjustments may focus on ensuring businesses remain profitable while consumers continue to benefit from lower costs.

Conclusion

The service industry plays a vital role in India’s economic structure, and the changes to GST made in September 2025 represent significant progress toward the aims of simplification and affordability. Salons and gyms, subject to an 18% GST rate with ITC previously, saw their GST rate lowered to 5% without ITC, contributing to a cheaper price point for end users while creating additional constraints on profit margins for the service providers. Life and health insurance premiums paid by purchasing individuals are now fully exempt, reducing some of the financial burdens on end users and supporting further expansion of insurance policies. These changes represent the continuation of India’s efforts to modernize its tax framework, considering the needs of revenue generation, consumer welfare, and industry sustainability.

A long-running tax controversy affecting India’s telecom infrastructure reached a decisive point in 2025 when the Supreme Court considered whether towers, shelters and related prefabricated structures used by mobile operators qualify as goods eligible for credit. The litigation resolved conflicting high court views and applied established legal tests for movability. The Court held that many such structures are movable in character and, depending on facts, can qualify as capital goods or inputs for credit purposes. The ruling clarifies the law for both pre-GST CENVAT and contemporary input tax credit disputes.

Background

Telecom operators buy towers, shelters and prefabricated cabins which are bolted or fastened at sites to carry antennas and electronic equipment. Revenue authorities had denied credit on the ground that, once fixed, these assets become immovable and therefore do not qualify under the CENVAT/input tax credit rules. Conflicting judgements from high courts created uncertainty: some benches treated such affixed structures as immovable; others recognised their relocatable character. The Supreme Court therefore examined the essential question of whether fixation transforms the goods into immovable property for credit law purposes.

The Court’s Tests and Reasoning

The Court applied well-established, multi-factor tests to determine movability:

• Permanency test: whether the structure was intended to be permanently attached to land.
• Intention and purpose test: whether attachment was intended to benefit land or the installed equipment and service.
• Functionality test: whether the fixation was used solely to serve the machinery or equipment that produces the taxable service.
• Marketability test: whether the article can be treated and traded as goods in the market.

Applying these tests to telecom towers and shelters, the Court concluded that where the structures are designed for functional support of telecom equipment, are bolted for stability and can be dismantled, relocated and reused, they retain the character of movable goods. The Court therefore accepted that such assets can qualify as capital goods or inputs under the relevant credit rules, subject to satisfying statutory conditions.

Key Legal Findings

• Fixation by bolts or fastenings, standing alone, does not automatically convert an item into immovable property.
• The commercial reality and intended use are central: if the erection serves the telecom equipment rather than improving land, movability is likely.
• Where those tests are satisfied, availability of CENVAT or input tax credit follows the ordinary rules; denial purely on the basis of affixation cannot be sustained.

Immediate and Practical Impact

The ruling removes a major legal obstacle for telecom companies seeking credit on towers and similar items. It strengthens the basis for claims that were earlier denied solely on the “immovable” theory. However, the judgement does not create automatic refunds. Affected taxpayers must follow statutory claim or refund procedures, consider limitation timelines, and address fact-specific record requirements when seeking relief. Tax authorities and tribunals will need to reassess denials in light of the movability analysis.

Further Relevance

While the decision is most directly relevant to telecom infrastructure, it has wider significance. Industries that use prefabricated units, modular cabins, plant supports or relocatable structures may now rely on the movability framework to argue credit entitlement. Administrative guidance and careful documentation on design, removability and intended use will be key for such claims.

Conclusion

Bharti Airtel’s litigation clarifies that legal treatment of an asset for credit purposes depends on substance over form. The Court reconciled statutory tests with commercial realities and provided a workable framework for distinguishing movable infrastructure from immovable construction. The ruling thus reduces legal uncertainty for telecom investment and offers a precedent other sectors can adapt, while also signalling that refund and credit claims remain subject to procedural conditions and limitation rules.

The Supreme Court’s order in Union of India vs. Bharti Airtel Ltd. and Others [CIVIL APPEAL NO. 2021 (ARISING OUT OF S.L.P. (C) NO. 8654 OF 2020) dated October 28, 2021] is a landmark on the limits of post-filing rectification under the Goods and Services Tax regime. Bharti Airtel sought a refund of roughly ₹923 crore for excess tax allegedly paid during the initial months of GST implementation in July–September 2017, citing technical failures of the return-matching system. The Delhi High Court had permitted rectification, but the Supreme Court set aside that relief and refused the refund, reinforcing the finality of self-assessed GSTR-3B returns and the statutory regime governing ITC claims.

The Initial Issues and Airtel’s Claim

When GST launched, certain electronic return processes were not fully operational. Inward-supply statements that would later assist ITC reconciliation did not immediately function as intended. Taxpayers filed summary returns in GSTR-3B on a self-assessment basis, sometimes making conservative estimates of ITC. Airtel said these constraints led to excess tax payment and sought rectification of earlier GSTR-3B filings to secure a refund of about ₹923 crore for the July–September 2017 period. The Delhi High Court initially allowed rectification and directed revenue authorities to verify revised returns.

Supreme Court’s Core Reasoning

On 28 October 2021, the Supreme Court overturned the Delhi High Court’s order and declined to allow unilateral rectification of GSTR-3B so as to claim the refund. The Court’s principal points were these:

• GSTR-3B is a self-assessment return and, once filed, carries statutory finality subject to the processes and timelines set out in the law and rules. Allowing retrospective reworking outside those processes poses risks to the GST electronic architecture and to third parties in the supply chain.
• Portal problems, while regrettable, do not displace the statutory mechanism. The Court treated the delayed availability of supplier statements as a practical difficulty that required administrative or legislative solutions, not judicially ordered, wide-ranging rewriting of statutory returns.
• The difference between a genuine correctable error and a post-facto attempt to alter self-assessed liability was stressed. The former falls within prescribed remedy windows; the latter cannot be used to undermine the GST return system.

Legal Principles Acknowledged

The judgement reaffirmed three structural principles of the GST regime: the primacy of self-assessment, the finality of GSTR-3B subject to statutory remedies, and the role of electronic ledger discipline for utilisation of input tax credit. The Court indicated that compliance and reconciliation must occur within the statutory scheme rather than by ad hoc judicial direction to reopen returns beyond permitted procedures.

Practical Impact on Businesses

The ruling curtailed the remedy available to taxpayers who had relied on post-launch administrative remedies. Businesses with similar transitional claims must rely on the statutory dispute and rectification mechanisms, audits, assessments, and refund procedures rather than expect broad return rectification. The decision underlines the need for contemporaneous reconciliation and careful self-assessment when filing summary returns.

Conclusion

A dispute regarding the extent to which courts can allow retrospective rectification of self-assessed GST returns was decided in Bharti Airtel v. Union of India. The Supreme Court strengthened the GST self-assessment structure’s discipline by rejecting the rectification-based refund claim and maintaining statutory finality. It also indicated that legislative or administrative solutions are better for systemic technical issues. The decision acts as a reminder to taxpayers to keep thorough reconciliations and to settle disputes using the proper legislative procedures.

Anti-profiteering is, essentially, about fairness. If a company experiences tax savings, the customers should likewise experience savings.

There are two clear instances where this applies:

1. Reduction in Tax Rates – When GST is reduced on a good or service, the price should be reduced accordingly.

Example: If the GST charged on shampoos is reduced from 28% to 18%, the manufacturer needs to reduce the MRP.

2. Benefit of Input Tax Credit (ITC) – Under GST, more items qualify for ITC than before, and businesses should lower costs, which should be passed on to customers through lower prices.

Example: A real estate builder saving on input costs related to construction should pass on those savings to the buyers.

If companies do not do this, it is deemed “profiteering”.

How NAA Worked and Its Role

To ensure compliance, the National Anti-Profiteering Authority (NAA) was established with wide powers. The process typically involved:

1. Complaint Filing – Consumers or stakeholders could approach the State Screening Committees or Standing Committee with evidence.
2. Investigation – The Director General of Anti-Profiteering (DGAP) examined invoices, pricing, ITC records, and profit margins.
3. Rulings by NAA – If profiteering was established, the authority could:
4. Order reduction in prices.
5. Refund overcharged amounts with 18% interest.
6. Direct deposit into the Consumer Welfare Fund if consumer identification was not possible.
7. Impose penalties or even cancel GST registration in extreme cases.

This structure made NAA one of the most powerful enforcement mechanisms under GST.

Key NAA Rulings That Shaped Compliance

Over the years, several rulings clarified how anti-profiteering provisions would be applied:

• FMCG Sector: Hindustan Unilever was asked to deposit over Rs. 230 crores in the Consumer Welfare Fund after investigations revealed that benefits of GST rate cuts weren’t fully passed to consumers.
• Real Estate: Builders were pulled up for failing to reduce property prices despite availing ITC benefits. NAA directed them to adjust base prices for homebuyers.
• Restaurants: After GST on restaurant services was reduced from 18% to 5% (without ITC), many eateries did not reduce menu prices. NAA ordered them to refund or deposit excess collections.
• E-commerce and Services: App-based cab services and online platforms faced scrutiny when GST rate cuts were not reflected in customer pricing.

These cases sent a clear signal: profiteering would not be tolerated, and businesses had to be meticulous in implementing tax benefits.

Impact on Businesses

While the law’s intent was consumer welfare, businesses faced both challenges and lessons.

• Compliance Burden: Calculating “commensurate” price reduction was not always simple. Different cost structures, product mixes, and pricing models made it complex.
• Fear of Litigation: Even genuine business decisions were sometimes questioned. Investigations were lengthy and reputationally damaging.
• Constant Price Adjustments: Companies had to frequently revise MRPs and system configurations with every GST rate change.
• Deterrence Effect: On the positive side, businesses became more transparent in pricing and cautious about unjustified markups.

From 1st October 2024, all cases shifted to the GST Appellate Tribunal (GSTAT), and with the sunset clause effective 1st April 2025, no new complaints will be accepted. This marks the end of a regulatory-heavy phase and a transition to market-driven pricing.

Conclusion

Anti-profiteering under GST was a unique experiment in consumer protection. By enforcing Section 171 of the CGST Act and related rules, the NAA made sure that businesses couldn’t pocket tax benefits meant for customers.

Yes, it added compliance pressure and at times created friction between regulators and businesses. But it also built a culture of accountability, forcing companies to think twice before ignoring consumer interests.

With the sunset clause in force, the chapter of strict anti-profiteering oversight is closing. Yet, its legacy will shape pricing strategies, business ethics, and consumer expectations in the GST regime for years to come.

The Goods and Services Tax (GST) has streamlined India’s indirect tax structure, making it easier for businesses to operate across states. One key aspect of GST compliance is claiming refunds when the tax paid exceeds the liability.

Timely and accurate refund claims help businesses maintain liquidity and ensure smooth cash flow. To make the process easier, the government has laid down a systematic approach for claiming GST refunds.

Read the article here to know about ALL ABOUT GST REFUND

All about GST REFUND

Step 1: Determine the Refund Type and Eligibility

Before initiating the refund process, you must first identify the reason for claiming a refund. Common situations include:

• Excess tax paid due to clerical errors.
• Export of goods or services under Letter of Undertaking (LUT) or payment of Integrated GST (IGST).
• Accumulated Input Tax Credit (ITC) due to inverted duty structure.
• Tax paid on deemed exports or supplies to SEZ units.

Each refund category requires specific documents and conditions. Ensure you fall under an eligible category as per GST law.

Step 2: File Refund Application on GST Portal

Refund claims must be filed online using Form GST RFD-01, available on the GST portal. Here’s what you need to do:

• Log in to the GST portal with your credentials.
• Navigate to Services → Refunds → Application for Refund.
• Select the relevant refund type from the drop-down list.

Filing must be done within two years from the relevant date as prescribed under GST rules. Missing this deadline can lead to the rejection of the claim.

Step 3: Upload Required Documents

Each refund category requires supporting documents. For example:

• Export refunds need shipping bills and bank realization certificates.
• Inverted duty refunds require details of inward and outward supplies.

You must also upload a declaration that the incidence of tax has not been passed on to another person (to avoid unjust enrichment). For claims above ₹2 lakh, a CA/cost accountant certificate may be required.

Step 4: Submit the Application and ARN Generation

Once all details and documents are provided, submit the application online. After submission, the system generates an Acknowledgement Reference Number (ARN). This ARN is essential for tracking the status of your refund claim.

Step 5: Verification by Tax Officer

The refund application is processed by the jurisdictional tax officer, who verifies the details and documents. The officer may seek additional information or clarification via a notice in Form GST RFD-03. You must respond promptly in Form GST RFD-04 to avoid delays.

Step 6: Provisional Refund (for Certain Cases)

For refund claims related to zero-rated supplies (exports or supplies to SEZ), the law allows for a 90% provisional refund to be issued within seven days of acknowledgement, subject to verification of documents. This ensures exporters maintain liquidity.

Step 7: Final Refund Order and Payment

After thorough verification, the tax officer issues a final refund order in Form GST RFD-06. The sanctioned amount is credited to your bank account registered on the GST portal.

If any amount is withheld, the officer provides reasons for the same. In case of rejection, the order will detail the grounds, and you may appeal against it.

Step 8: Track Refund Status

You can track the status of your refund using the ARN on the GST portal under the “Track Application Status” option. Timely monitoring ensures you respond to any additional queries without delay.

Tips for Quicker Refund Processing

• Ensure all invoices and returns (GSTR-1, GSTR-3B) are filed accurately.
• Maintain proper documentation and reconcile ITC regularly.
• Avoid errors in bank details to prevent payment failures.

Conclusion

Claiming a GST refund can seem complex, but following the prescribed steps and ensuring compliance with documentation requirements makes the process hassle-free. Businesses should also maintain proper records and file claims within the stipulated time frame to avoid rejection. A smooth refund process not only improves cash flow but also enhances trust in the GST system.

The Goods and Services Tax (GST) framework in India provides a mechanism for taxpayers to claim refunds under specific circumstances. Refund eligibility is a crucial aspect of GST compliance, as it ensures that businesses do not suffer financial hardship due to excess tax payments. Understanding the eligibility conditions for claiming a GST refund is essential for every registered taxpayer.

WHAT IS A TAX REFUND?

A GST refund refers to the process through which the excess amount of tax paid by a taxpayer is returned by the government. This can occur due to multiple reasons, such as excess tax payment, zero-rated supplies, or inverted duty structure. The GST law aims to make this process transparent and time-bound, thereby maintaining the cash flow of businesses.

ELIGIBILITY CRITERIA FOR GST REFUND

Under the GST Act, the following categories of taxpayers and transactions are eligible to claim a refund:

1. Excess Tax Paid

If a taxpayer has mistakenly paid more tax than the actual liability, they are entitled to claim a refund. This situation often arises due to errors while filing GST returns or incorrect tax calculation.

2. Exports and Zero-Rated Supplies

Supplies that are zero-rated, such as exports of goods and services or supplies to Special Economic Zones (SEZs), qualify for a refund. Exporters can claim a refund of the Integrated GST (IGST) paid on exports or the unutilized Input Tax Credit (ITC) when exports are made under a Letter of Undertaking (LUT) without payment of IGST.

3. Inverted Duty Structure

An inverted duty structure occurs when the tax rate on inputs is higher than the tax rate on output supplies. In such cases, businesses accumulate excess ITC that cannot be utilized and are eligible to claim a refund of this unutilized credit.

4. Tax Paid on Supplies Not Provided

If tax has been paid on goods or services that were not supplied, or where the agreement was cancelled and a credit note has been issued, the taxpayer is eligible to claim a refund of the tax amount.

5. International Tourists

Foreign tourists visiting India are eligible to claim a refund of GST paid on goods purchased during their stay in the country, subject to prescribed conditions.

6. Deemed Exports

Supplies notified as deemed exports under GST, such as supplies made to Export Oriented Units (EOUs), are eligible for refunds. Either the supplier or the recipient can apply for a refund, based on the agreed terms.

7. Tax Paid under Wrong Head

If tax is paid under the wrong head (e.g., IGST instead of CGST/SGST or vice versa), the taxpayer can claim a refund of the amount paid incorrectly.

8. Refund for Advance Tax Deposits

In certain cases, businesses may deposit advance tax but do not go ahead with the planned supply. In such situations, the tax deposited can be claimed back through a refund application.

CONDITIONS TO KEEP IN MIND

While the above categories qualify for a GST refund, certain conditions must be fulfilled:

• The taxpayer must be registered under GST.
• The claim should be filed within two years from the relevant date as per GST law.
• Proper documentation, such as tax invoices, shipping bills, and proof of payment, is mandatory.
• The refund amount should not include any unjust enrichment, i.e., the tax burden should not have been passed on to the consumer.

CONCLUSION

GST refund eligibility is designed to reduce the financial burden on businesses and promote ease of doing business in India. By understanding the categories and conditions for refund eligibility, taxpayers can ensure timely claims and maintain healthy cash flow. However, it is equally important to maintain accurate records and comply with timelines to avoid rejection of refund claims.

Under the Goods and Services Tax (GST), e-invoicing is a major reform intended to automate and standardize how companies generate and report invoices. Implemented in stages from October 2020, this innovation guarantees real-time GST Network (GSTN) invoice authentication, enhancing compliance and transparency while lowering tax evasion.

WHAT IS E‑INVOICING UNDER GST?

Through a specific Invoice Registration Portal (IRP), the GSTN electronically authenticates business-to-business (B2B) invoices and some other documents. This process is known as e-invoicing, or electronic invoicing.

E-invoicing is not the same as creating invoices directly on the GST system, despite what many people think. Rather, companies use their own accounting or ERP software to create invoices, which are subsequently uploaded to the IRP for verification. A unique Invoice Reference Number (IRN) and QR code are issued by the IRP, and the information is automatically shared with the e-way bill system and the GST portal (for GSTR-1 filing).

APPLICABILITY OF E‑INVOICING

E‑invoicing applies to GST‑registered businesses that exceed specific turnover limits. The applicability has been extended gradually through multiple phases:

Phase	Turnover Threshold (AATO)	Effective Date
I	Above ₹500 crore	1 October 2020
II	Above ₹100 crore	1 January 2021
III	Above ₹50 crore	1 April 2021
IV	Above ₹20 crore	1 April 2022
V	Above ₹10 crore	1 October 2022
VI	Above ₹5 crore	1 August 2023

Note:

At the Indian level, the total turnover is determined by adding up all of the GSTINs under the same PAN.

Any business that crosses the threshold in any of the 2017–18 financial years will be subject to e-invoicing as of the beginning of the subsequent financial year.

Right now, all B2B transactions involving companies with yearly revenue over ₹5 crore must be done electronically.

EXEMPTIONS FOR E‑INVOICING

Some firms, irrespective of turnover, are exempt. These consist of:

• Banking companies, insurers, and NBFCs

• Goods Transport Agencies (GTA)

• Suppliers of passenger transport services

• Multiplex operators exhibiting cinematographic films

• Government departments and local authorities

• SEZ units (but not SEZ developers)

LATEST UPDATES ON E‑INVOICING (2025)

Rules related to e-invoicing are constantly changing. Among the most recent updates are

30 Day Upload Rule: Businesses with an AATO of ₹10 crore or more are required to upload invoices to the IRP within 30 days of the invoice being issued as of April 1, 2025. Invoices will become noncompliant due to delays.

Invoice numbers that are not case-sensitive: Invoice numbers are treated as case-insensitive by the IRP, which automatically converts them to uppercase prior to IRN formation, as of June 1, 2025.

Two-Factor Authentication (2FA): Businesses with a revenue of more than ₹20 crore have to adopt 2FA in order to access NIC services as of January 1, 2025. It applies to companies having a turnover of ₹5–20 crore as of February 1, 2025, and it becomes mandatory for all taxpayers on April 1, 2025.

Other Changes:

With effect from January 1, 2025, the e-way bill generation period is limited to 180 days from the invoice date.

E-way bills have a 360-day maximum validity extension.

BENEFITS OF E‑INVOICING

E-invoicing has several benefits for both tax authorities and businesses.

Standardization: Reporting is made easier and errors minimized with a consistent format.

Smooth Data Flow: GSTR-1 and e-way bill auto-population saves time and avoids inconsistencies.

Faster Input Tax Credit (ITC): Real-time invoice delivery to buyers facilitates faster ITC applications.

Reduced Tax Evasion: The possibility of fraudulent invoicing is decreased by real-time authentication.

Improved Financial Management: Automated billing raises company reputation and compliance.

CONCLUSION

One of the most important steps to digital tax compliance is e-invoicing under GST. In addition to being required by law, it offers companies the chance to increase accuracy, speed up processes, and gain the trust of customers and tax authorities. Companies need to remain active in order to avoid penalties in regard to the new updates, particularly the April 2025 30-day reporting rule.

Businesses will be able to maintain seamless operations and improve their tax governance in the changing GST framework by making sure that e-invoicing laws are followed on time.

The Goods and Services Tax (GST) system in India mandates different returns for taxpayers depending on their business nature and turnover. Among these, GSTR-9 is the annual return that consolidates all monthly or quarterly filings made during a financial year. It is a crucial compliance document designed to ensure transparency and accuracy in tax reporting.

What is GSTR-9?

GSTR-9 is an annual return form to be filed by all regular taxpayers registered under the GST Act. It provides a comprehensive summary of outward supplies (sales), inward supplies (purchases), tax paid, input tax credit (ITC) claimed, and any tax liability adjustments made during the year.

It acts as a reconciliation statement between returns like GSTR-1, GSTR-2A/2B, and GSTR-3B. Filing GSTR-9 helps both the taxpayer and the government identify mismatches in reporting and ensures that all dues are settled properly before closing the financial year.

The due date to file GSTR-9 is 31st December of the year following the particular financial year. For example, the due date for the financial year 2024–25 is 31st December 2025.

Who Must File GSTR-9?

As per the latest updates:

• Mandatory Filing: All regular taxpayers registered under the GST regime are required to file the GSTR-9 annual return, provided their aggregate annual turnover exceeds ₹2 crore during a financial year.
• Exemption for Small Taxpayers: Taxpayers with an aggregate annual turnover up to ₹2 crore are exempted from filing GSTR-9 for the financial year 2024–25, as per Notification No. 15/2025-CT dated 17th September 2025.
• Multiple GSTINs: Regular taxpayers having multiple GSTINs under the same PAN must file a separate GSTR-9 for each GSTIN.
• Taxpayers Opting Out of Composition Scheme: Taxpayers who have opted out of the composition scheme during the financial year and shifted to the regular scheme are required to file GSTR-9.

Who Is Not Required to File GSTR-9?

The following registered persons under GST are not required to file the annual return in GSTR-9 format:

• Composition Taxpayers: They are required to file GSTR-4 (annual return for composition scheme) instead.
• Casual Taxable Persons: Individuals who undertake occasional taxable supplies in a state or union territory.
• Input Service Distributors (ISD): Entities distributing input tax credit to branches or units.
• Non-Resident Taxable Persons: Foreign entities engaged in business temporarily in India.
• Tax Deductors (TDS) under Section 51 of the CGST Act: Entities deducting tax at source.
• Tax Collectors (TCS) under Section 52 – E-commerce Operators: E-commerce operators collecting tax at source.

Turnover Limit and Applicability

The turnover threshold plays a key role in determining who must file GSTR-9. As per the latest notifications and decisions by the GST Council:

• Businesses with turnover up to ₹2 crore: Filing GSTR-9 is optional (as exempted via notifications for FY 2017–18 up to FY 2024–25).
• Businesses with turnover above ₹2 crore: Filing GSTR-9 is mandatory.
• Businesses with turnover exceeding ₹5 crore must also file GSTR-9C, the Reconciliation Statement, which needs to be self-certified.

These provisions are covered under Rule 80 of the CGST Rules, 2017, which governs annual return compliance.

Types of GSTR-9 Forms

There are four types of annual return forms under the GST framework, depending on taxpayer classification:

Form	Applicable To	Description
GSTR-9	Regular taxpayers	Consolidated annual return based on monthly/quarterly filings.
GSTR-9A	Composition taxpayers (up to FY 2018–19)	Replaced by GSTR-4 (Annual Return for Composition Taxpayers) annual return from FY 2019–20.
GSTR-9B	E-commerce operators (TCS collectors)	Annual Statement for E-commerce Operators (TCS collectors) under Section 52(5).
GSTR-9C	Taxpayers with turnover above ₹5 crore	Reconciliation statement, self-certified by the taxpayer.

Note: Additional liability identified in GSTR-9C can now be paid using either cash or available ITC.

Late Fee and Penalties for Non-Filing

Failure to file GSTR-9 within the due date attracts a late fee under Section 47(2) of the CGST Act, 2017. The penalty varies based on the taxpayer’s turnover (as rationalized from FY 2022-23 onwards):

Turnover (₹)	Late Fee per Day	Maximum Penalty (CGST + SGST)
Up to 5 crore	₹50 (₹25 under CGST + ₹25 under SGST)	0.04% of turnover in State/UT
5–20 crore	₹100 (₹50 + ₹50)	0.04% of turnover in State/UT
Above 20 crore	₹200 (₹100 + ₹100)	0.50% of turnover in State/UT (0.25% under CGST + 0.25% under SGST)

For earlier financial years (up to FY 2021–22), a late fee of ₹200 per day (₹100 under each act) applied, subject to a maximum of 0.50% of turnover.

Conclusion

Filing GSTR-9 is not just a legal compliance but also a vital financial exercise that promotes accuracy and transparency in a business’s GST reporting. It helps reconcile sales, purchases, and tax credits throughout the financial year while preventing future disputes or notices from tax authorities.

For businesses with turnover above ₹2 crore, timely filing of GSTR-9 ensures smooth compliance and enhances credibility with tax authorities. Proper reconciliation, supported by digital tools and accounting software, can make this complex process seamless and error-free—strengthening a business’s compliance foundation under India’s evolving GST regime.

The base of India’s Goods and Services Tax (GST) system is the idea that tax compliance may be guaranteed via a smooth digital process. To become a recognized taxpayer, companies must first register under the GST. The tax authorities or the taxpayer may, however, choose to cancel this registration in certain circumstances. However, if there are valid reasons, the law also gives the option to revoke such cancellation. Every taxpayer must comprehend the cancellation and revocation of GST registration procedures in order to prevent fines and unnecessary legal issues.

Meaning of GST Registration Cancellation

Cancellation of GST registration means that the taxpayer is no longer registered under GST, and therefore, he or she is not required to collect, pay, or file returns under GST. After cancellation, the taxpayer cannot legally continue business operations that require GST compliance, such as issuing tax invoices or availing input tax credit (ITC).

Who Can Apply for Cancellation of GST Registration?

GST registration can be cancelled in three ways:

1. Voluntary Cancellation by the Taxpayer (Section 29(1), CGST Act, 2017)

A registered person can apply for cancellation if:

• The business has been discontinued or transferred.
• There is a change in the constitution of the business (e.g., a proprietorship converted to a company).
• The business is no longer liable to be registered (for instance, turnover falls below the threshold limit).

2. Cancellation by Proper Officer (Suo Motu)

The GST officer may cancel the registration in cases such as:

• Failure to file returns for a continuous period (3 returns for composition dealers, 6 returns for regular taxpayers).
• Obtaining registration by fraud, misstatement, or suppression of facts.
• Violation of GST provisions or rules.

3. Cancellation on Transfer of Business

If the business is amalgamated, demerged, or transferred, the old GST registration can be cancelled while the new entity applies for fresh registration.

Process of Cancellation of GST Registration

The process of cancellation is carried out online through the GST portal:

• Step 1: Log in to the GST portal and go to the “Services” tab.
• Step 2: Under “Registration,” select “Application for Cancellation.”
• Step 3: Fill in the reason for cancellation and provide details of stock, liability, and tax payable.
• Step 4: Submit the application with a digital signature or EVC.
• Step 5: The officer reviews the application and, if satisfied, issues an order in Form GST REG-19 within 30 days.

In case of Suo motu cancellation, the officer issues a notice in Form GST REG-17, and the taxpayer must reply in Form GST REG-18.

Effects of Cancellation

Once cancelled:

• The taxpayer cannot charge GST or claim ITC.
• All pending liabilities must be cleared before cancellation.
• In the case of remaining stock or capital goods, tax liability arises on the goods held on the date of cancellation (as per Section 29(5) of the CGST Act).

Revocation of GST Registration Cancellation

Revocation means reversing the cancellation and restoring the registration. It is applicable only when cancellation is done Suo motu by the officer. A taxpayer who has voluntarily cancelled registration cannot apply for revocation.

Conditions for Revocation:

• Application must be made in Form GST REG-21 within 30 days of the cancellation order.
• Before applying, all pending returns must be filed and dues cleared.
• The officer may approve revocation in Form GST REG-22 or reject it by issuing a notice in Form GST REG-23.

If rejected, the taxpayer must reply in Form GST REG-24 within 7 working days.

Conclusion

Cancellation and revocation of GST registration are not merely procedural steps but vital aspects of tax compliance. While cancellation frees businesses from unnecessary compliance where GST is no longer applicable, revocation protects genuine taxpayers from disruptions caused by unintended or wrongful cancellations. Every taxpayer should be aware of these provisions to ensure smooth functioning of their business under the GST regime.