03/09/2025
Here are the latest developments on GST reform and Income Tax Return (ITR) deadlines:
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GST Update
The 56th GST Council meeting is underway, focusing on major tax reform under the so-called “GST 2.0” initiative.
The council is considering consolidating existing GST slabs by eliminating the 12% and 28% categories and moving items to just 5% or 18%, while introducing a 40% “sin tax” on luxury and sin goods like to***co and high-end cars.
Consumers may benefit from lower GST rates on daily essentials, electronics, and FMCG, potentially boosting spending. However, some states warn of revenue losses and are asking for clearer compensation plans.
A GST fitment panel has already endorsed a simplified two-slab structure, aiming for smoother compliance and lower tax burden.
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ITR Update
The ITR filing deadline for FY 2024–25 (AY 2025–26) has been extended to 15 September 2025, applicable to individuals, HUFs, and entities not needing audit.
If you miss this deadline, you may still file a belated ITR until 31 December 2025, though this will attract penalties and affect your ability to carry forward certain losses.
Experts believe another extension is unlikely, urging taxpayers to file before 15 September to avoid penalties.
Pending issues like technical glitches, ICAI-form revisions, and glitches in e-filing systems have prompted RTCA to request leniency, but no formal extension has been granted yet.
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In summary:
GST reforms may soon simplify indirect taxation and reduce costs on essential goods, though states are wary of revenue hits.
ITR deadlines have been extended, but prompt filing is essential to avoid penalties and maintain benefits.
Would you like help narrowing down which GST changes matter most for your sector, or guidance on which ITR form to use for your specific income type?