GST Compliance 2025
Complete GST compliance guide for 2025 covering key updates, amendments, and Kerala-specific considerations for businesses.
Introduction
Since its implementation in 2017, the Goods and Services Tax (GST) has significantly transformed the indirect tax landscape in India. Today, as we move through 2025, GST continues to evolve with amendments, tech-driven compliance systems, and sector-specific changes that directly impact businesses in Kerala—especially MSMEs, traders, and professionals.
Key GST Updates for 2025
1. Introduction of Biometric Aadhaar Authentication for Registration
To curb fake registrations and improve transparency, the GST Council has expanded Aadhaar-based biometric authentication for new registrations in high-risk states. While Kerala has not yet been included, it is prudent to expect wider implementation soon.
Action Point: Businesses registering for GST should ensure that documentation and Aadhaar information are consistent and updated.
2. E-Invoicing Threshold Reduced
The e-invoicing mandate now applies to businesses with a turnover exceeding ₹3 crore (reduced from ₹5 crore). Many SMEs in Kerala, especially wholesalers and exporters, now fall under this bracket.
Action Point: If your turnover exceeds ₹3 crore, implement e-invoicing software compatible with the GST portal. Delays in e-invoicing can result in non-compliance and penalties.
3. Input Tax Credit (ITC) Reconciliation is More Stringent
GSTN now uses advanced data analytics to match GSTR-2B with GSTR-3B. Any mismatch can lead to notices and blocked credit.
Action Point: Regularly reconcile purchase data and ensure that your vendors file accurate GSTR-1 returns. Work closely with your accountant or GST consultant to automate reconciliation where possible.
4. New Amendments to GST Returns Filing
Late fees for delayed returns and interest on excess ITC claimed have been revised. Composition taxpayers and small service providers must take special note of recent clarifications.
Action Point: Stay updated on due dates and changes in filing formats. Use GST compliance calendars or reminders to avoid penalties.
5. Kerala-Specific Considerations
Kerala continues to impose a Flood Cess (1% on intra-state supplies of certain goods and services) to support post-flood reconstruction efforts.
Action Point: Ensure that your billing software accommodates the Kerala Flood Cess, and regularly review your outward supply reports to verify correct application.
Common GST Mistakes Businesses Should Avoid
- Not reconciling GSTR-2B with purchase books
- Claiming ITC without receipt of goods or services
- Ignoring vendor compliance (non-filers impact your ITC)
- Delayed response to GST notices or ASMT-10s
How Our Firm Can Help
At Abraham & Kurian, we offer end-to-end GST services including:
- GST Registration & Amendments
- Monthly and Quarterly Return Filing
- GST Audit & Annual Return Support
- ITC Reconciliation & Vendor Compliance Tracking
- Representation before GST Authorities
Conclusion
GST is not just a tax—it's a compliance ecosystem. As the law evolves, staying informed and proactive can save businesses from unnecessary scrutiny and penalties. Let Abraham & Kurian guide you through the complexities of GST compliance in 2025.
