Key points
- June 2024: 53rd GST Council offered relief on old interest and penalty demands and eased credit time limits for early years.
- July 2024: GSTR-1A arrived, letting businesses correct GSTR-1 before filing GSTR-3B.
- October 2024: the Invoice Management System (IMS) went live for supplier invoices.
- April 2025: ISD became compulsory for common services; HSN reporting tightened; 30-day e-invoice limit for ₹10 crore+ businesses.
- September 2025: GST 2.0 moved most items to 5% and 18%, with 40% for luxury and harmful goods.
2024
June 2024: 53rd GST Council meeting
The Council focused on reducing disputes. It recommended waiving interest and penalties on certain older tax demands (for 2017-18 to 2019-20, where the demand was not about fraud) if the tax itself was paid by a set date, which became Section 128A. It also eased the time limit for input tax credit claimed in the early years of GST, cut the pre-deposit needed to file appeals, and exempted some Indian Railways services to the public, such as platform tickets.
July 2024: GSTR-1A introduced
GSTR-1A gave businesses a way to add or correct sales details for a month after filing GSTR-1 but before filing GSTR-3B. This made it easier to keep the two returns in line.
August 2024: B2C large limit reduced
The limit for reporting inter-state B2C invoices one by one in GSTR-1 came down from ₹2.5 lakh to ₹1 lakh.
September 2024: 54th GST Council meeting
GST on three cancer drugs came down from 12% to 5%, and on extruded and fried savoury snacks (namkeen) from 18% to 12%. The Council also set up groups of ministers to study GST on insurance and the future of the compensation cess.
October 2024: Invoice Management System (IMS)
IMS let buyers accept, reject or keep pending each supplier invoice before their GSTR-2B is finalised. It gave businesses more control over which credit they claim. Around the same time, rent paid by registered businesses to unregistered landlords for commercial property was brought under reverse charge.
December 2024: 55th GST Council meeting
Held in Jaisalmer, the meeting made smaller rate changes, such as 5% on fortified rice kernels and exemption for gene therapy, and clarified several issues. Decisions on insurance were deferred while the larger rate review continued.
2025
February 2025: Budget and the Finance Act
The Finance Act 2025 made several GST amendments, including a “track and trace” system for certain goods, a clarification on the credit block for immovable property, and a lower pre-deposit for appeals that involve only a penalty.
April 2025: ISD, HSN and e-invoice changes
- ISD compulsory: businesses with branches in several states must distribute credit on common input services through an Input Service Distributor registration. See our ISD guide.
- HSN reporting: the HSN summary in GSTR-1 was split into B2B and B2C, and codes are picked from a list rather than typed.
- E-invoice time limit: businesses with turnover of ₹10 crore or more must report e-invoices within 30 days of the invoice date.
July 2025: tighter return rules
From the July 2025 period, the tax liability carried into GSTR-3B from GSTR-1 can no longer simply be edited in GSTR-3B; corrections go through GSTR-1A. Returns also can’t be filed once three years have passed from their due date.
August 2025: GST 2.0 announced
In his Independence Day speech, the Prime Minister announced “next-generation” GST reforms to simplify rates and lower tax on everyday items.
September 2025: 56th GST Council meeting and the new rates
On 3 September 2025, the Council approved a new structure: two main rates, 5% and 18%, and a special 40% rate for a short list of luxury and harmful goods. The new rates took effect on 22 September 2025. Individual life and health insurance became exempt, most medicines moved to 5%, and the compensation cess ended for most goods. The Council also approved simpler registration for small, low-risk businesses and faster provisional refunds. Read the full story in our GST 2.0 guide.
What these changes mean in practice
| Change | What you should do |
|---|---|
| GSTR-1A and the GSTR-3B lock | Get GSTR-1 right first. Correct mistakes in GSTR-1A before filing GSTR-3B. |
| IMS | Review supplier invoices every month before your GSTR-2B is finalised. |
| ISD | If you have branches in several states, register an ISD and distribute common service credit. |
| HSN changes | Make sure every item has the right code with the right number of digits. |
| GST 2.0 rates | Update every item rate, review prices and check your credit position. |
| Three-year time bar | Don’t let returns pile up; old returns can’t be filed after three years. |
Milaan ERP has been updated for each of these changes: GSTR-1A-ready reports, GSTR-2B and IMS reconciliation, ISD support, the split HSN summary and the new rate structure. See our GST billing software overview.
This guide explains GST rules in simple words and reflects the law as we understand it on 28 October 2026. Rules, rates and dates change, so please confirm with your CA or the official notifications before acting on it.