GST Compendium: May 2025

The May edition of the GST Compendium highlights how recent global tariff adjustments and a landmark international agreement influence indirect taxation and trade strategy. It explains the rise in GST collections and links it to stronger enforcement and economic momentum. It also talks about the GST Appellate Tribunal (GSTAT) Rules and the revised registration guidelines that aim to simplify processes while preventing misuse. The edition examines key judicial decisions that define the scope of supply and clarify the limits of retrospective tax application. It also covers direct tax updates, including changes to audit requirements, deadlines under resolution schemes, and new classifications for tax collection. This edition brings into focus how recent measures reflect a broader shift towards clarity, consistency, and accountability in tax administration. It connects regulatory intent with judicial direction, offering a cohesive view of the themes that continue to influence tax policy and its practical application.

Key highlights of the GST Compendium May 2025

• Important updates/announcements: India and the UK have finally signed the long-awaited Free Trade Agreement and Double Contribution Convention — a milestone set to boost bilateral trade, spur job creation, and elevate living standards. This deal also deepens their Comprehensive Strategic Partnership, paving the way for increased investment, innovation, and economic cooperation.
• Key judicial pronouncements: The Kerala High Court reaffirmed the principle of mutuality, striking down GST on services by clubs to their members, underscoring that such transactions aren’t ‘supplies’ in the eyes of the law. Meanwhile, the Bombay High Court quashed penalties and interest on the IGST for advance authorisation imports made before the 2024 amendment, sending a strong message that such an amendment cannot be applied retroactively or interpreted beyond its scope.
• Significant updates in direct taxes: The CBDT has notified changes in Form 3CD (Tax Audit Report), announced the deadline for filing under the Vivad se Vishwas Scheme, 2024, and also notified a list of luxury goods for collecting tax at the rate of 1%.

It also features insights from our indirect tax expert on the GSTAT Rules and its implications for businesses. 

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GST Compendium: May 2025