Complete GST Reforms Timeline: 2024–2025
E-Invoicing Threshold Reduced to ₹5 Crore
From January 1, 2024, e-invoicing under GST became mandatory for all registered businesses with aggregate annual turnover exceeding ₹5 crore. Earlier the threshold was ₹10 crore. This brought lakhs of additional businesses under the e-invoicing regime.
53rd GST Council Meeting — Pre-Budget Decisions
The council discussed significant changes including rationalisation of GST rates on insurance premiums, changes to millet-based products (reduced to 5%), and procedural simplifications for small businesses.
54th GST Council — Rate Rationalisation Moves
The 54th GST Council meeting approved reduction in GST on cancer drugs from 12% to 5%, namkeen and savouries from 18% to 12%, and certain services related to research and development institutions. The council also set up a GoM on rate rationalisation.
IMS (Invoice Management System) Launched
GSTN launched the Invoice Management System (IMS) — a major upgrade allowing taxpayers to accept, reject, or keep pending supplier invoices for ITC reconciliation. This aims to reduce mismatches between GSTR-2A and ITC claims in GSTR-3B.
55th GST Council — Landmark Decisions
One of the most significant meetings. Key decisions: GST exemption for contributions to CAPF welfare funds, reduced GST on fortified rice kernels to 5%, clarity on gene therapy services (12%), and expansion of the GoM mandate for comprehensive rate rationalisation.
GoM Report on Rate Rationalisation
The Group of Ministers on GST Rate Rationalisation submitted its final report proposing merging of the 12% and 18% slabs into a single 15% rate for many items, creating a simplified 4-rate structure (5%, 15%, 28%, and special category). This set the stage for GST 2.0.
GSTR-1A Introduction
GSTN introduced GSTR-1A — an amendment return allowing taxpayers to correct errors in GSTR-1 before the GSTR-3B filing deadline. This significantly reduced the need for filing amendments in subsequent months.
56th GST Council — Healthcare & Insurance Rate Changes
GST on term life insurance premiums for individuals reduced to NIL (from 18%). Health insurance for senior citizens also exempted from GST. GST on pre-packaged and labelled food items further rationalised.
Key Technology Upgrades in GST 2024-2025
| System / Feature | Status | Impact |
|---|---|---|
| Invoice Management System (IMS) | Live — Oct 2024 | Better ITC reconciliation, fewer disputes |
| GSTR-1A (Amendment) | Live — Apr 2025 | Easier corrections to GSTR-1 |
| E-Way Bill System v2.0 | Live — 2024 | Improved vehicle tracking, multi-vehicle transport |
| GST Analytics Dashboard | Enhanced 2025 | Real-time tax gap analysis for authorities |
| B2C QR Code Mandate | Extended rollout | Dynamic QR codes on B2C invoices |
Major GST Rate Changes 2024-2025
| Item / Service | Old Rate | New Rate | Effective |
|---|---|---|---|
| Cancer Drugs (specific) | 12% | 5% | Aug 2024 |
| Namkeens & Savouries | 18% | 12% | Oct 2024 |
| Millet-based food (branded) | 12% | 5% | Oct 2024 |
| Term Life Insurance (Individual) | 18% | Nil | Jun 2025 |
| Senior Citizen Health Insurance | 18% | Nil | Jun 2025 |
| Fortified Rice Kernels | 18% | 5% | Nov 2024 |
Always Stay Updated with Milaan ERP
Milaan ERP automatically updates GST rate tables whenever the GST Council makes changes — so your billing always reflects the current applicable rates. No manual updates needed. Focus on your business, not on tax tables.
What to Expect: GST 2.0 in 2026
Based on the GoM report and GST Council discussions, the anticipated GST 2.0 changes for 2026 include:
- Rate rationalisation: Moving towards 3-4 slabs (Nil, 5%, 15%, 28%) from the current 5-rate structure
- Merging 12% & 18% slabs: Many items to move to a unified ~15% rate
- Cess rationalisation: Reducing the complexity of the compensation cess
- IMS full rollout: Complete integration with GSTR-3B auto-population
- GST Appellate Tribunal: Physical benches operational across India
FAQs on GST Reforms 2024-2025
Stay GST Compliant with Every New Reform
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