goods and service tax

Published on 12 April 2025

GST & ITC in 2025: New Rules, GSTR-2B & Supplier Compliance

GST & ITC in 2025: What Indian Businesses Need to Act On

Back in the day, GST compliance was mostly about filing returns. But since January 2022, things have changed. Now, managing GST is just as much about communication as it is about calculation. A newer feature on the GST portal—"Communicate with Taxpayers"—has added a much-needed bridge between suppliers and recipients. And if you're a business navigating the 2024 and 2025 updates, here’s what you need to know.

The Big Shift in ITC Claims

Before 2022, businesses could claim up to 5% provisional ITC, even if some invoices were missing from GSTR-2B. That buffer is gone. From January 1, 2022, you can only claim ITC if the invoice or debit note is present in your GSTR-2B. No entry in 2B? No credit.

Your GSTR-2B gets generated around the 14th each month. It pulls data from your suppliers’ filings (GSTR-1, IFF, GSTR-5, and GSTR-6). If they don't upload their documents by the 13th, your claim gets pushed to the next month.

Say Hello to Digital Nudging

The "Communicate with Taxpayers" tool lets you politely knock on your supplier's door (digitally, of course). You can:

  • Get SMS/email alerts when someone contacts you through the GST portal.
  • Remind your supplier to file GSTR-1 or IFF on time.
  • Request missing credit/debit notes through the same portal.

It’s official, trackable, and actually useful in a dispute.

Know Your Role: Supplier or Recipient

If you supply goods or services:

  • File GSTR-1/IFF by the 11th or 13th of every month. If you don’t, your customer can't claim ITC. That alone could hurt your cash flow or credibility.

If you're on the receiving end:

  • Watch your supplier's filings. If they miss deadlines regularly, use the communication feature to create a record.
  • Some businesses are now holding back GST payments until suppliers upload invoices to GSTR-1. This is risky, so make sure your contract allows it and consult legal counsel first.

Quarterly Filers? Use IFF

If you’re filing quarterly, your customers don’t have to wait three months to claim ITC. The Invoice Furnishing Facility (IFF) allows you to share invoices during the first two months of a quarter. Just remember: file IFF by the 13th of the following month to keep things running smoothly.

What Changed in 2024 and 2025?

  • The turnover limit for mandatory e-invoicing has been reduced to ₹5 crore.
  • GST portal updates have made it more mobile-friendly and easier to use.
  • Automated checks are being introduced to flag non-compliance more quickly.

Practical Tips to Stay Ahead

  • Don’t skip reviewing your GSTR-2B. Check it after the 14th every month.
  • Don’t wait till something goes wrong. Use the communication feature early.
  • Nail down contract terms that require suppliers to comply with GST timelines.
  • Save all your GST-related communications. If things go sideways, this could be your proof.
  • Stay in the loop on policy updates. GST is still evolving.
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