GST Registration Process Updates 2025

The Central Board of Indirect Taxes and Customs (CBIC) issued Instruction No. 03/2025-GST on April 17, 2025, to streamline the GST registration process:

• Strict Adherence to Document Requirements:
  Tax officials must follow the document checklist in FORM GST REG-01 without deviation.
  
• Elimination of Arbitrary Notices: Officers are directed not to raise notices or seek clarifications based on presumptions or minor inconsistencies.
  
• Escalation Protocol for Additional Requests: If an officer believes additional documents are necessary, they must obtain prior approval from the deputy or assistant commissioner.
  
• Proof of Principal Place of Business (PPOB):
  • Owned Premises: Any one of the following documents is sufficient: property tax receipt, municipal khata copy, electricity bill, water bill, or other legally acceptable documents showing ownership.
    
  • Rented/Leased Premises: A valid rent/lease agreement along with any one ownership document of the lessor (e.g., property tax receipt, electricity bill) is required.
    

Compliance & Authentication Enhancements

• Mandatory Multi-Factor Authentication (MFA):
  All users accessing the GST portal must use MFA to enhance security.
  
• Biometric Authentication:
  Applicants must complete biometric authentication within 15 days of application submission; failure to do so will delay the Application Reference Number (ARN) generation.

E-Invoicing and E-Way Bill Regulations

• E-Invoice Reporting Deadline: Taxpayers with an Aggregate Annual Turnover (AATO) exceeding ₹10 crore must report e-invoices within 30 days of issuance.
  
• E-Way Bill Validity:
  • Invoice Age Restriction:
    E-Way Bills can only be generated for invoices issued within the last 180 days.
    
  • Validity Extension Cap:
    The total extension of E-Way Bill validity cannot exceed 360 days.

Invoice Series and Turnover Considerations

• New Invoice Series Requirement:
  Businesses must initiate a fresh, unique, and sequential invoice series starting April 1, 2025, for all transactional documents.
  
• Turnover Calculation:
  Accurate calculation of turnover is essential to determine obligations concerning GST registration, Quarterly Return Monthly Payment (QRMP) Scheme eligibility, and e-invoicing requirements.
  

Sector-Specific GST Rate Adjustments

• Used Car Sales:
  GST rate increased from 12% to 18% on the sale of second-hand vehicles.
  
• Hotel Industry:
  • Declared Tariff Concept Abolished:
    GST is now levied based on the actual amount charged.
    
  • Specified Premises Classification:
    Hotels charging above ₹7,500 per unit/day are classified as “specified premises” and attract 18% GST on restaurant services with ITC benefits.