GST 2.0 is here, India’s biggest tax reset since 2017!
- ABHISHEK SHRIVASTAVA
- Oct 19
- 2 min read
Updated: Nov 3
From “One Nation, One Tax” to “One System, One Standard,” the GST framework just got its biggest makeover yet.
Understanding the GST Reforms
Announced by PM Modi and effective from September 22, 2025, the reforms simplify the structure, rationalize rates, and make compliance smarter. This is a significant shift in how GST operates in India.
Key Changes Effective from October 1, 2025
Here’s what changes from October 1, 2025:
✅ Manual GSTR-2B—no more auto ITC
✅ 180-day ITC claim limit
✅ Credit notes need buyer acceptance
✅ ISD registration mandatory for multi-branch entities
✅ 3-year lock on old filings
✅ 5 simplified GST slabs (0%, 5%, 18%, 40%, + cesses)
Implications of the Changes
These changes aim to reduce confusion and enhance control for businesses. GST 2.0 is built for accuracy, speed, and transparency.
What It Means for Businesses
The new GST framework will significantly impact how businesses manage their tax compliance. With the elimination of auto ITC and the introduction of a 180-day limit for ITC claims, businesses must adapt their accounting practices.
Pro Tip: Ensure your accounting software is updated to handle these changes effectively.
Common Mistakes to Avoid
As businesses transition to the new GST system, several common pitfalls may arise:
Ignoring the 180-day ITC Claim Limit: Ensure you file your claims within the stipulated time frame.
Overlooking Buyer Acceptance for Credit Notes: This new requirement can lead to disputes if not managed properly.
Failing to Register for ISD: Multi-branch entities must ensure compliance to avoid penalties.
Preparing for the Transition
To prepare for these changes, businesses should take proactive steps:
Review Current Processes: Assess how your current GST processes will be affected.
Train Your Team: Ensure your staff understands the new regulations.
Consult a Professional: If you're unsure about the changes, consider seeking advice from a tax professional.
Conclusion
The GST reforms mark a significant step towards simplifying India’s tax landscape. By understanding these changes and preparing accordingly, businesses can navigate the new system with confidence.
Still unsure? Book a quick chat on WhatsApp to discuss how these changes may affect you.
By ASAtax by Abhishek
Simplifying India’s tax maze—one reform at a time.
Disclaimer: Information correct as of June 2025. Consult a tax professional for personalized advice. Your privacy is important to us; all client chats are kept confidential.
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