GST WEEKLY UPDATE :16/2025-26 (20.07.2025) By CA Vipul Khandhar

-By CA Vipul Khandhar

1. GST Portal is now enabled to file appeal against waiver order (SPL 07):

Taxpayers who have filed waiver applications in Forms SPL 01/SPL 02 are receiving orders from the jurisdictional authorities:

                                  Acceptance Order in SPL 05 or

                                  Rejection Order in SPL-07.

The GST Portal has now been enabled to allow taxpayers to file Appeal applications (APL 01)against SPL 07 (Rejection) Order.

Please use the Navigation below to file Appeal Application against SPL-07 orders:

Go to: Services → User Services → My Application

• Select Application Typeas: “Appeal to Appellate Authority”
• Click on New Application

In the application form, under Order Type, select: “Waiver Application Rejection Order” and enter all the relevant details. After entering the details, Please proceed with filing of appeal.

It may be noted that the option to withdraw appeal applications filed under the waiver scheme is not available on the GST portal. Taxpayers are therefore advised to exercise due caution while filing such appeals.

Also, if any taxpayer does not want to file appeal against “waiver application rejection order” but want to restore the appeal application (filed against original demand order) which was withdrawn for filing waiver application can do so by filing undertaking. The option for filing of undertaking is available under “Orders” section in “Waiver Application” case folder.

In case of any difficulty or technical issue, taxpayers shall raise a ticket on the GST Helpdesk at: https://selfservice.gstsystem.in

2. Reporting values in Table 3.2 of GSTR-3B, from the July 2025 tax period, auto-populated values in Table 3.2 of GSTR-3B for inter-State supplies to unregistered persons, composition taxpayers, and UIN holders will be non-editable:

Taxpayers must ensure accurate reporting in GSTR-1, GSTR-1A, or IFF, as these values will directly populate Table 3.2. (The GSTN issued Advisory No. 617 dated July 19, 2025

To ensure that GSTR-3B is filed accurately with the correct values of inter-state supplies, it is advised to report the correct values in GSTR-1, GSTR-1A, or IFF. This will ensure the auto-populated values in Table 3.2 of GSTR-3B are accurate and compliant with GST regulations.

Please go through the FAQs mentioned below for better understanding.

1. What are the changes related to reporting supplies in Table 3.2?

Starting from the July 2025 tax period, the auto-populated values in Table 3.2 of GSTR-3B for inter-state supplies made to unregistered persons, composition taxpayers, and UIN holders will be non-editable, and taxpayers will need to file GSTR-3B with the auto-populated values generated by the system only.

2. How can I rectify values in Table 3.2 of GSTR-3B if incorrect values have been auto-populated after July 2025 period onwards due to incorrect reporting of the same through GSTR-1?

If incorrect values are auto-populated in Table 3.2 after July 2025, taxpayers need to correct the values by making amendments through Form GSTR-1A or through Form GSTR-1/IFF filed for subsequent tax periods.

3. What should I do to ensure accurate reporting in Table 3.2 of GSTR-3B?

Taxpayers should ensure that the inter-state supplies are reported correctly in their GSTR-1, GSTR-1A, or IFF. This will ensure that the accurate values are auto-populated in Table 3.2 of GSTR-3B.

4. Till what time/date I can amend values furnished in GSTR-1 through Form GSTR-1A?

As there is no cut-off date for filing Form GSTR-1A before GSTR-3B which means Form GSTR-1A can be filed after filing Form GSTR-1and till the time of filing Form GSTR-3B. Hence, any amendment required in auto-populated values of table 3.2, same can be carried out through Form GSTR-1A till the moment of filing GSTR-3B.

3. The GSTN issued an Advisory No. 616 dated July 17, 2025,for taxpayers on upcoming security enhancements:

The GST System is being continuously enhanced to strengthen data security and improve transparency to the taxpayers.

In this effort, the below mentioned enhancement shall be shortly introduced to provide transparency and control to the taxpayers who interact with the GST System using Application Suvidha Providers (ASP). The ASP use GST System authorized API channel partners that are called GST Suvidha Providers (GSP). The role of a GSP is to provide API access between GST System and ASP.

Email and SMS notification service to inform taxpayer upon every successful OTP consent access provided by taxpayer to the ASP. The taxpayers authorized signatory shall receive notification via email and/or SMS whenever ASP successfully obtains their consent, by providing OTP from the GST System, to access their data over APIs. The notification would have following details:

•     Name of the ASP and the underlying GSP
•     Date and Time of the OTP Consent
•     Validity Period of the consent

The GST Common Portal is being further enhanced to provide view of current & historic access gained by ASP / GSP and enable taxpayer with an option to revoke any active consent. The taxpayer shall be able to access this after logging to their GST Common Portal dashboard. 

4. Karnataka GST department has clarified for the GST Registration Requirements: (a press note dated 11-07-2025) The traders who have done business through the digital payment gateways:

As per section 22 of the Goods and Services Tax Act, 2017, every person who carries on a business activity and receives payment by way of cash, UPI, POS Machine, Bank Payments or by any other means exceeding Rs. 40 Lakhs annually in case of a person dealing only in goods and exceeding Rs. 20 Lakhs annually in case of persons dealing in services have to obtain GST registration mandatorily.

➡ The aggregate turnover, in case of a person who has obtained GST registration under the regular scheme, would include the taxable and tax exempted goods and services.

➡ If the person has obtained registration under regular scheme, the tax is leviable only on the taxable goods and taxable services only.

➡ The registered person shall have to pay the net tax on the supplies made by him after adjusting the input tax credit on the goods and services procured. Hence, the amount of tax payable on the value addition will be very less.

➡ In continuation, any person whose annual turnover is less than Rs. 1.5 Crores can opt for composition tax scheme after obtaining GST registration and can pay SGST at 0.5% and CGST at 0.5%. But, the composition tax scheme is not applicable on the turnover made without obtaining registration.

In view of the above, the traders are advised, not to get confused and to submit explanation with relevant documents after visiting the office from where they have received notice and the officers would verify them and suitably inform the relevant provisions of the GST and also their remedies and would levy tax at the applicable rates only on the taxable turnovers after excluding the tax exempted goods and services.

5. Advisory – Regarding GSTR-3A Notices issued for non-filing of form GSTR 4 to cancelled Composition Taxpayers:

As per the provisions of Section 39(2) of the Central Goods and Services Tax (CGST) Act, 2017, read with Rule 68 of the CGST Rules, 2017, notices in Form GSTR-3A are required to be issued in cases of non-filing of Form GSTR-4. However, it has come to notice that, due to a system-related glitch, such notices have been inadvertently issued in certain cases where they were not applicable — including instances involving taxpayers whose registrations had been cancelled prior to the Financial Year 2024–25.

The issue is currently under active examination, and the technical team is implementing appropriate corrective measures to ensure that such instances do not recur. In the meantime, taxpayers who have either duly filed the relevant return or whose registrations were cancelled prior to the Financial Year 2024–25 are advised to ignore these notices, as no further action is required on their part in such cases.

For any other issues or concerns, taxpayers are advised to raise a grievance through the Self-Service Portal available on the GST Portal, along with all relevant details, to facilitate prompt and effective resolution.

6. Important Judgements:

             (i) Gujarat High court decision regarding Recipient to reverse ITC for supplier’s failure to remit tax, absence of relevant documentation:

             (Applicant- R V Enterprises)

➡ The Gujarat High Court upheld the reversal of Input Tax Credit (ITC) claimed by the recipient, on the grounds that the supplier failed to remit the corresponding tax to the government, as required under Section 16(2)(c) of the CGST Act.

➡  The petitioner failed to provide key evidence—such as valid tax invoices, e-way bills, and transport documents—to prove the genuineness of the transactions and the existence of actual supply, weakening their ITC claim.

➡  The Court emphasized that the tax department had already conducted an inquiry and found that the supplier did not discharge any outward tax liability, reinforcing the conclusion that ITC cannot be availed in such cases.

➡ Rejecting the petitioner’s plea to reinterpret the provision, the Court held that ITC eligibility is conditional upon the actual deposit of tax by the supplier; non-payment invalidates the credit, regardless of the recipient’s intent or due diligence.

➡ Despite upholding ITC reversal, the Court waived the penalty owing to the department’s failure to issue a mandatory pre-show cause notice in Form GST DRC-01A, reflecting the importance of procedural compliance in enforcement actions.

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavor has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.

(The Author is a well known Chartered Accountant practicing at Ahmedabad on Direct and Indirect Tax)