The October 2025 edition of the GST Compendium presents a comprehensive overview of the latest indirect tax reforms, with a particular focus on the implementation of GST 2.0 following the 56th GST Council meeting. This structural overhaul introduces a streamlined three-rate framework, rationalised service classifications, and procedural enhancements aimed at improving compliance certainty and operational efficiency across sectors. The publication provides detailed insights into the notified changes, including revised rate schedules for goods and services, sector-specific implications, and transitional considerations for businesses. It also covers key judicial pronouncements, policy updates, and procedural amendments impacting GST, Customs, FTP, SEZ, and direct tax domains.
Key highlights of the GST Compendium October 2025
- Important updates/announcements: Setting the stage for the next phase of India’s indirect tax journey, the CBIC has formally rolled out GST 2.0, effective 22 September 2025, with a simplified three-rate structure: 5% (merit), 18% (standard), and 40% (de-merit, for specified luxury and sin goods). For industries such as FMCG, consumer durables, and MSMEs, the new framework is expected to revive demand and enhance competitiveness. In addition, the government has formally launched the GST Appellate Tribunal (GSTAT) and its e-filing portal on 24 September 2025, introducing a unified digital platform for appeals. To manage the anticipated high volume of filings, a staggered filing schedule has been announced, with a final cut-off date of 30 June 2026.
- Key judicial pronouncements: The Supreme Court has settled a long-standing interpretational dispute by clarifying that the export duty under the Customs law arises only when goods are physically taken out of India, and not on the domestic tariff area (DTA) – special economic zone (SEZ) supplies. It held that supplies from a DTA to a SEZ do not constitute “export” under the Customs law.
- Significant updates in direct taxes: CBDT has notified new rules relating to salary and amended them for the purpose of reporting in relation to deduction claimed by OBUs and IFSC Units. Further, CBDT extended the due date of tax audit report till 31 October 2025 for AY 2025-26.
With the formal rollout of the Goods and Services Tax Appellate Tribunal (GSTAT), system-driven provisional refunds, and digitised appellate processes, the reforms mark a significant shift towards a more predictable and technology-enabled tax environment.
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