After announcement for new generation tax reforms by Government of India, the Ministry of Finance on 17th September 2025 published a notification for infusion of Central GST Third Amendment Rules 2025 which aims to bring robust changes in procedural mechanisms in tax filing, improving transparency in ITC reporting and reducing complexities in e-commerce transactions.
The rules will amend the Central Goods and Services Tax 2017 and propose following changes:
Valuation for Gaming & Lottery
- The valuation factor for actionable claims such as lottery, betting, and gambling has been revised.
Input Tax Credit Distribution by ISD
- Input Service Distributors (ISD) can now distribute credit not only on supplies under the CGST Act but also on reverse charge supplies covered under IGST.
- Applies retrospectively from 1 April 2025, so past records may need review.
Refund Processing
- Refund claims will be evaluated through system-based risk assessment.
- Officers must issue provisional refund orders in 7 days using the revised format.
- This change will apply from 1 October 2025.
Appeals before GSTAT
- Introduction of new forms (APL-02A, APL-04A) for smoother tracking of appeals. Single Member Benches can now decide appeals that don’t involve a question of law. Monetary limit of ₹50 lakh for deciding bench composition will be calculated on a cumulative basis.
- Effective from 22 September 2025.
Annual Returns & Reconciliation (GSTR-9 / GSTR-9C)
- More detailed reporting required, including: ITC of the previous FY claimed in the current FY (till October).
- IGST on imports claimed in the following FY.
- Consolidated reporting of ITC reversals under multiple rules.
- Separate rows for e-commerce operator liabilities.
- Nodal Ministry: Ministry of Finance, GOI
- Subject: Tax Reforms- Goods and Services Tax
- Notification date: 17-09-2025
Click HERE to find the full notification
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