GST Updates – October 2025: User-Generated GSTR-2B, Credit-Note Sequencing, IMS upgrades, 90% refunds & rate recap

GST Updates — October 2025 (India)

Everything that changed this month: User-generated GSTR-2B via IMS, credit-note sequencing, IMS upgrades, 90% provisional refunds, rate recap & collections — with steps to implement.

Effective 1 Oct 2025 GSTR-2B • IMS • Credit notes Refunds & Rates Action checklists

1) GSTR-2B is now user-generated through IMS (no longer purely auto)

• From Oct 2025, recipients must Accept / Reject / Pend invoices/notes in IMS; then click Generate GSTR-2B. Only accepted (or deemed accepted) items flow into 2B → 3B ITC tables. See GSTN advisory on IMS & upgrades. GSTN PDF; A2ZTaxCorp.

Open IMS: GST Portal → Services → Returns → Invoice Management System (IMS).

Filter & review: Scan supplier-uploaded B2B invoices/CNs/DNs for the period.

Take actions: Accept if correct; Reject with remark; Pend if awaiting clarification.

Generate 2B: Click Generate GSTR-2B. Now 2B shows only your accepted (or deemed accepted) entries.

File 3B: Claim ITC strictly as per 2B; pending/rejected won’t populate in 3B.

2) Credit-note sequencing: supplier can reduce tax only after buyer reverses ITC

• Law change (Oct 2025): Supplier’s reduction through a GST credit note is allowed only after the recipient reverses the corresponding ITC. System validations and IMS trail support this linkage. Explainers on amended proviso to Section 34 & practice notes: DPNC; CAclubindia; TaxReply.
• Financial/Commercial CNs (no GST): No ITC reversal for recipient; supplier cannot reduce tax via such CNs. CBIC circular coverage: Business Standard; TaxGuru.

Do this now: When you issue a GST CN, coordinate with customer for timely ITC reversal; when you receive a GST CN, reverse ITC in your 3B and Accept the CN in IMS so supplier can reduce liability.

3) IMS upgrades effective this month

• Remarks on Reject/Pend recorded in audit trail for both parties (helps vendor follow-ups). GSTN advisory summaries: A2ZTaxCorp; CACult.
• Deemed acceptance risk if you don’t act before 2B generation — review weekly.

Routine to set: Close IMS actions by 13th/14th; run a vendor-mismatch report every Friday.

4) Faster refunds: 90% provisional on/after 1 Oct (risk-based)

• Instruction 06/2025-GST (3 Oct): Up to 90% provisional refund for low-risk claims (zero-rated) and, as an interim measure, IDS refunds filed on/after 1 Oct 2025. Coverage & instruction: Taxmann; Economic Times.

Action: File IDS/zero-rated refunds promptly; expect quicker 90% release if risk-score permits.

5) GSTR-7: invoice-wise TDS reporting live

• Invoice-wise reporting enabled from Sep 2025 period (first due date: 10 Oct 2025). GSTN advisories & trade coverage: A2ZTaxCorp; Taxscan; ClearTax.

Action: TDS deductors must upload invoice-wise details in GSTR-7; align ERP extractions.

6) Rate recap (carry-forward from Sep notifications)

• Revised rates notified in late Sep apply into Oct invoicing—verify your item codes & MRPs. PIB press notes on Sep decisions & FAQs. PIB release.

Action: Re-map HSNs and update POS/ERP tax codes.

7) Collections snapshot (reported in Oct)

Gross GST: ₹1.89 lakh cr (+9.1% YoY)

Reported by govt/press in early Oct. IBEF.

8) Do-it-now checklist (Oct 2025)

1. IMS weekly: Run IMS on Fri; Accept/Reject/Pend with remarks; Generate 2B by 14th.
2. 3B discipline: Claim ITC from 2B only; book RCM in 3.1(d).
3. Credit-notes: If you issue GST CN, coordinate buyer ITC reversal; if you receive GST CN, reverse ITC this period and Accept the CN in IMS.
4. Financial CNs: No ITC reversal; keep agreements/documentation.
5. Refunds: File IDS/zero-rated refunds early to benefit from 90% provisional sanction.
6. GSTR-7 TDS: Switch to invoice-wise upload for Sep period (due 10 Oct).
7. Rates: Make sure Sep-notified rates reflect in Oct invoices and MRPs.

Related explainers on this site: GST Amnesty — what & how • RCM: Buyer vs Seller (what each must do) • Need help? Filing & ITC review

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