The CBIC on Friday flagged fake GST notices being sent to businesses and asked taxpayers to report such frauds immediately. Replying to a social media user who complained on X about receiving a call from a purported GST officer, the Central Board of Indirect Taxes and Customs (CBIC) said fraudsters are sending fake summons mimicking official GST documents. They use the CGST logo and fake DIN numbers to make it look genuine, the CBIC said.

The CBIC advised taxpayers to verify the Document Identification Number (DIN) mentioned in every communication on the CBIC portal. "If it's real you'll get a confirmation. If not, report it immediately," the CBIC said.

The relevant declarations issued vide Notification No. 05/2025 – Central Tax (Rate), dated 16th January 2025, are now made available electronically on the GST Portal. These declarations may be opted for and filed by persons who are applying for registration or are already registered and supplying hotel accommodation services by declaring the premises as “specified premises”.

Kindly take note of the following key points:

1. Who may opt and file the declaration

• Regular taxpayers (active and suspended) supplying hotel accommodation service who want to declare their premises to be a "specified premises"
• Applicants for new GST registration who want to declare their premises to be a “Specified Premises”
The facility is not applicable to composition taxpayers, TDS/TCS taxpayers, SEZ units/developers, casual taxpayers, or cancelled registrations.
2. Types of Declarations

The following declarations are made available on the portal:

1. Annexure VII: Opt-In Declaration for Registered Person – For existing registered taxpayers opting to declare premises as specified premises for a succeeding financial year.
2. Annexure VIII: Opt-In Declaration for Person Applying for Registration – For persons applying for new registration, to declare premises as specified premises from the effective date of registration.
(Annexure IX – Opt-Out Declaration will be made available separately in due course of time.)

The GST Council is expected to meet within the next fortnight two weeks to consider a proposal to reduce the tax rate on air and water purifiers, a move that could make these products more affordable amid growing public health concerns. Official sources quoted in reports indicated that the issue has gained urgency and is likely to be taken up for discussion by the Council, which brings together the Union finance minister and state finance ministers to take decisions on indirect taxation.

At present, air and water purifiers attract an 18% goods and services tax (GST), placing them in the same bracket as several discretionary consumer durables. The proposal under consideration involves lowering the tax rate, potentially to the 5% slab, by treating these products as essential or health-related items rather than luxury goods. If approved, the reduction could lead to a noticeable drop in retail prices, improving access for households facing poor air quality and limited availability of safe drinking water.

The move comes against the backdrop of rising concerns over air pollution levels in major cities and persistent issues related to water contamination in several parts of the country. There has been sustained pressure from industry bodies, consumer groups and public health advocates to rationalise the tax structure on purification devices, arguing that high taxes undermine efforts to promote preventive health measures. The matter has also drawn attention in legal and policy circles, adding to the momentum for a review of the current tax rate.

Gross GST collections rose 6.1% to over Rs 1.74 lakh crore in December 2025. According to government data released on Thursday, Gross GST collections for FY26 so far (April–December) reached Rs 1.64 lakh crore, up 8.6% from the corresponding period last year.

GST collected from imports jumped sharply to Rs 51,977 crore in December, registering a growth of 19.7% compared to the Rs 43,438 crore in December 2024. In contrast, gross domestic GST revenue grew only 1.2% year-on-year(YoY) to Rs Rs 1.23 lakh crore, indicating softer momentum in local consumption.

The Ministry of Finance on Wednesday issued a notification announcing discontinuation of the Goods and Services Tax (GST) compensation cess on tobacco and related products effective February 1, marking the end of a temporary levy introduced in 2017 to offset state revenue losses during the GST rollout and extended to repay Covid-era borrowings.

A separate Health Security and National Security Cess has been introduced on pan masala and related items to maintain high taxation levels, with proceeds earmarked for public health initiatives and national security will also come into effect from February 1.

2025 has been a year filled with numerous changes related to goods and services tax (GST), including some significant court rulings and GSTN advisories that have transformed how professionals conduct their business.

Brief overview of the updates in the GST landscape in 2025
CA Jitendra Patel-Partner, Indirect Taxes, N. A. Shah Associates LLP, explain some of the major GST changes and amendments:
1. In September 2025, there was a thorough GST rates rationalisation, commonly referred to as GST 2.0. The aim was to boost the economy, reduc litigation, simplify compliance and revenue neutrality, and this has been achieved.
2. Abolition of compensation cess from most items except for a few sin goods like tobacco and cigarettes which has resulted in reduction of prices for various items like motor cars etc.

Tobacco products and pan masala products are set to face a new tax structure from February 1. This comes as the Centre rolls out additional excise duty and a health cess, above the current GST rates. The new structure will replace the compensation cess which is applied on 'sin goods.
Tobacco and allied products will now attract an additional excise duty while pan masala will have a Health and National Security Cess.

As per a government notification, pan masala, cigarettes, tobacco and similar products will be taxed at 40% under the Goods and Services Tax (GST) regime. Meanwhile, biris will attract an 18% GST rate. These GST rates will continue, but new levies will now be imposed separately.

The GST Council may consider cutting goods and services tax on air and water purifiers for domestic use from 18 per cent to 5 per cent, reclassifying them as essential items rather than discretionary consumer goods. It could lower retail prices by about 10-15 per cent, improving affordability for lower-income families at a time when air quality across the country worsens and access to safe drinking water remains uneven, multiple reports said, citing sources familiar with the matter.

The date of the next GST Council meeting remains unknown, the reports said. The Council last met in September for its 56th session, when rates on purifiers were left unchanged, and officials said any reduction would require consensus among state finance ministers. Pressure on the Council to cut rates intensified after the Delhi High Court earlier this week asked the government to convene a meeting, virtually, if necessary, to consider cutting or abolishing GST on air purifiers amid worsening air quality in Delhi-NCR. “There is a process…We are not saying whether it will be done or not,” additional solicitor general N Venkataraman told the court, arguing meetings must be held physically.

The Delhi High Court observed that if clean air cannot be ensured for citizens, at the very least, the Goods and Services Tax (GST) on air purifiers should be reduced. The court was hearing a public interest litigation (PIL) to declare air purifiers as falling within the category of medical devices and asked the Centre to take immediate instructions on granting a temporary GST exemption.

1. To ensure correct and accurate reporting of reversed and reclaimed ITC and to avoid clerical mistakes, Electronic Credit Reversal and Re-claimed Statement (Reclaim Ledger) was introduced on the GST portal from August 2023 return period onwards for monthly taxpayers and from July-September 2023 quarter for quarterly taxpayers. This Reclaim Ledger captures the ITC temporarily reversed in Table 4(B)2 and its subsequent reclaim in Table 4(A)5) and 4(D)1.

2. As of now taxpayer get a warning message if a taxpayer attempts to re-claim excess ITC in table 4D(1) than the available ITC reversal balance but the taxpayer is allowed to file its Form GSTR-3B.

3. To the taxpayers multiple opportunities have been given to report their opening balance which was earlier reversed ITC but was not reclaimed till that time, for the newly introduced Reclaim Ledger.

4. This statement can be viewed by the taxpayer by navigating to the Dashboard › Services › Ledger › Electronic Credit Reversal and Re-claimed.

5. To assist taxpayers in correctly reporting Reverse Charge Mechanism (RCM) transactions, another statement called "RCM Liability/ITC Statement" (RCM Ledger) was introduced on the GST Portal from August 2024 onwards for monthly filers and from July-September-2024 period for quarterly filers. The ledger captures and track the RCM liability shown in Table 3.1(d) of GSTR-3B and its corresponding ITC claimed in Table 4A(2) and 4A(3) of GSTR-3B for each return period.

6. A warning message comes to the taxpayer in case the ITC claimed in Table 4(A)2 and 4(A)3 exceed the closing balance of RCM ledger plus the liabilities being reported in Table 3.1(d).

7. To the taxpayers multiple opportunities have been given to report the RCM ITC opening balance and amend the opening balance for both the said statements where any transaction related to excess ITC reversal or excess RCM liability/ITC prior to implementation of the said statements could be declared as opening balance to these statements.

8. This RCM Liability/ITC Statement can be accessed through: Services >> Ledger >> RCM Liability/ITC Statement.

The Centre has formally allotted benches to 83 newly appointed members of the Goods and Services Tax Appellate Tribunal (GSTAT), a move that will make the long-pending tax dispute resolution body operational across the country.

According to the order issued on Saturday, the members have been asked to join their respective benches by January 21, 2026.

The order assigns 28 Technical Members (Centre) to benches in key commercial centres including Mumbai, Delhi, Chennai and Bengaluru. Six Technical Members (State) have been posted to locations such as Varanasi, Lucknow and Mumbai. The largest group comprises 49 Judicial Members, who have been deployed across multiple benches, with significant postings in Delhi, Mumbai and Ahmedabad.

Opposing the Delhi High Court’s intervention in a PIL seeking GST reduction on air purifiers from 18% to 5% by classifying them as medical devices, the Centre said Friday that any judicial direction will amount to the court stepping into the legislative domain and violating the Constitution’s basic structure of separation of powers.

Stating that entertaining the petition will “open a Pandora’s box” and the government is “scared from the constitutional perspective”, Additional Solicitor General N Venkataraman, appearing for the Centre, said there is already a legislative process involved in dealing with recommendations made in Parliamentary standing committee reports as well as how GST Council meetings deliberate on proposals. “How can this process be scuttled through a court process?” he said.

Advocate Kapil Madan, appearing as party-in-person in the PIL, has submitted in the petition that an air purifier can be classified as a medical device as per a February 11, 2020 notification of the Ministry of Health and Family Welfare.

'The Times of India' brings you 'Hack of the Day - a new weekday-series of quick, practical solutions to everyday hassles. Each hack is designed to save you time, money or stress, using tools and features within your reach from government websites to everyday apps. In simple words it is: Simple fixes for smarter living.
In India, every business registered under GST is allotted a 15-digit GSTIN (Goods and Services Tax Identification Number). This number is mandatory on invoices, bills, and receipts. However, with rising cases of fake GST numbers being used to dupe customers, it's crucial to verify the authenticity of a GSTIN before transferring
money or claiming input tax credit.

Risks of not verifying GSTIN
Fraudulent payments: Paying to unregistered entities posing as GST-compliant businesses.
Loss of Input Tax Credit (ITC): You cannot claim ITC on fake GST numbers.
Legal complications: Dealing with non-compliant businesses can attract penalties.

The Union government is considering measures to ease the goods and services tax (GST) compliance burden for small businesses in the upcoming Budget, amid concerns that higher US tariffs have disproportionately impacted micro and small enterprises, Mint reported, citing people familiar with the discussions.

One proposal under review is to allow micro enterprises to pay GST quarterly instead of monthly, the sources told Mint. Under the revised MSME norms, micro enterprises are defined as businesses with annual turnover of up to Rs 10 crore.

The Centre is also looking at adopting a more lenient enforcement framework. In cases involving genuine errors or delayed filings, MSMEs may initially be issued a warning, with penalties waived for the first two instances, one of the people cited by Mint said.

Noida’s high-rise societies are facing financial and administrative challenges after the Uttar Pradesh tax department issued notices to over two dozen societies for non-payment of GST on maintenance and electricity charges. The department has sought details about such charges collected by apartment owners’ associations.

The notices, issued over the past three months, state that monthly maintenance and electricity charges in societies with centralised supply may be taxable at 18 per cent. The department is asking the societies to provide details and may impose GST, along with interest and penalties if non-compliance is found.

So far, AOAs had not been required to pay GST on maintenance or electricity charges collected from residents, both under the old Value Added Tax (VAT) system and the Goods and Services Tax (GST) regime, which was introduced in 2017. However, starting this financial year, the UP tax department began visiting AOAs’ offices to collect information about services provided to residents, including maintenance, electricity, and club/gym facilities.

“The department is collecting information about services rendered by AOAs (RWA) to residents, such as maintenance services, electricity (both Grid and DG), club & gym, and others.

GSTN has published series of FAQ on 16th Oct, 2025 and 4th Dec, 2025 for assisting the taxpayer in filing of Annual Return i.e., GSTR-9/9C. For convenience, the taxpayer may access Consolidated FAQs by clicking here.

GST 2.0 has, by and large, settled in. RBI pegs GDP growth at roughly 6.8%, and international agencies continue to endorse India's resilient growth prospects. Revenue collections remain buoyant despite significant rate rationalisations and fewer slabs. But the upbeat headline masks two persistent weaknesses: first, rate cuts do not always translate into lower final prices because input taxes can remain higher than the tax on the finished product, and, second, evasion through fake invoices has not abated and, in some cases, appears to be flourishing.
Scrap is gold - and trouble
The single commodity most vulnerable to misuse is scrap. Almost all scrap -battery, plastic, steel (glass being an exception) - attracts an 18% duty. Scrap is a vital feedstock: reclaimed materials are reprocessed to make new products, which themselves typically face an 18% levy. That creates a loop in which scrap and scrap-derived goods are taxed at the same rate, increasing the attractiveness of invoice-based fraud.

Anecdotal evidence suggests the scrap trade produces as many fake invoices as genuine scrap. Under GST, the invoice is the lynchpin: it unlocks input tax credit (ITC). If an unscrupulous manufacturer obtains a bogus invoice from a dubious scrap dealer, the manufacturer can discharge a large part - sometimes the entirety - of its tax liability through fake input credit. The simplest fraud chain involves a supplier issuing fake invoices, booking fictitious supplies, pocketing the net tax paid by buyers, and then deregistering to evade scrutiny.
The frequent cancellations of registrations provide a visible indicator of the scale of this phenomenon.

As many as 55,813 cases of Goods and Services Tax (GST) evasion worth Rs 1,60,950 crore have been detected during last 3 years and seven months, Parliament was informed on Tuesday.

Cases of GST evasion (ITC frauds) have been detected where bogus or dummy entities were found to be used as fronts for fake invoicing, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha.

During the current financial year up to October, 24,109 cases of tax evasion having financial implication of Rs 41,664 crore have been detected, he said.

As many as 15,283 cases of Input Tax Credit (ITC) fraud having financial implication of Rs 58,772 crore were detected by tax authorities during 2024-25, he said.

The government has taken several measures to prevent and tackle the cases of fake invoicing (ITC frauds), he said.

Electronic invoicing system (e-invoice) has been made mandatory for all B2B transactions for businesses with turnover exceeding Rs 5 crore and physical verification requirement in high-risk cases, even when Aadhaar has been authenticated are some of the measures taken by the government.

The Lok Sabha on Friday cleared the Health Security and National Security Cess Bill, opening the door for the Centre to levy a special cess on pan masala manufacturing units. The revenue raised from this levy will be channelled into bolstering national security initiatives and improving public health systems.

During the Parliament Winter Session's debate, Finance Minister Nirmala Sitharaman said that the cess will be shared with the states, noting that public health falls within the state government’s domain.

The bill, first introduced on December 1, 2025, allows the Centre to levy a cess not only on pan masala but also on any additional products that may be notified later.

Under the proposed framework, the cess will be charged to anyone who owns or controls machines, or undertakes manual processes, to produce the specified goods.

As per Rule 10A, taxpayers (except those registered under TCS, TDS, or Suo-moto registrations) must furnish their bank account details within 30 days of grant of registration or before filing details of outward supplies in GSTR-1 or IFF, whichever is earlier.

The following updates have been implemented on the GST Portal with respect to Rule 10A:

Automatic Suspension:
If a taxpayer fails to furnish bank account details within 30 days of registration, the system will automatically suspend the registration. The suspension order can be viewed at: Services > User Services > View Notices and Orders.

Adding Bank Account Details:
Taxpayers can add bank account details through a non-core amendment by navigating to: Services > Registration > Amendment of Registration (Non-Core Fields).

Automatic Dropping of Cancellation Proceedings:
Once bank account details are furnished, cancellation proceedings will be automatically dropped by the system.

The Supreme Court on Thursday held that leasing out of residential premises to an entity which is using it as hostel for students and working professionals is exempted from GST.

A bench of justices JB Pardiwala and KV Viswanathan upheld the verdict of the Karnataka High Court which said that leasing out of residential premises to an entity which is using it as hostel to students and working professionals is exempt under GST.

"In the case on hand, the ultimate use of the property as residence remains unchanged. However, if 18 per cent GST is levied on this transaction between the respondent No. 1 and the lessee i.e. M/s DTwelve Spaces Private Limited, the same would ultimately be passed on to the students and working professionals which would lead to a situation where the legislative intent behind granting exemption for residential use is defeated," the bench said.