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MESSAGE
The Fifth National Coordination Meeting of the State and Central GST administrations was held on
December 13ᵗʰ, 2025 as a follow-up to the earlier coordination meeting. The discussions centred on
systemic reforms under GST with dedicated working groups reviewing key functional areas. The focus
remained on identifying operational issues and suggesting technology-driven and taxpayer-friendly
improvements to further strengthen the GST framework.
During the month, important changes were introduced in the taxation of pan masala and tobacco-related
products. A revised rate structure has been notified with effect from February 1 , 2026, whereby bidi
has been brought under the 18% GST rate, while pan masala, various forms of tobacco (other than
bidis), cigarettes and nicotine-based inhalation products have been placed under the 40% GST rate. At
the same time, a special valuation mechanism based on the declared retail sale price has been introduced
for these products, and the levy of compensation cess on specified pan masala and tobacco products has
been withdrawn.
st
GSTN has enabled an online facility on the GST Portal for filing opt-in declarations to declare hotel
accommodation premises as “Specified Premises.” The facility is available to regular taxpayers and new
registration applicants supplying hotel accommodation services, while certain categories such as
composition taxpayers and cancelled registrations are excluded. Declarations can now be filed
electronically within the prescribed timelines, with system-generated acknowledgement and email/SMS
confirmation, and the option will continue unless opted out.
Lastly, GST revenue collections remained robust, with December 2025 collections registering a year-
on-year growth of 6.1% to ₹1.74 lakh crore, reflecting steady compliance and continued stabilisation of
the GST system.
Pankaj Kumar Singh
Additional Secretary
GST COUNCIL SECRETARIAT
GST
NEWSLETTER
ISSUE-81, DECEMBER 2025
The 5ᵗʰ National Coordination Meeting of the State and Central GST administrations was
held on 13 December, 2025 at Bharat Mandapam, New Delhi, under the chairmanship of
the Hon’ble Revenue Secretary. Senior officers from the CBIC, Central and State Tax
Departments, DoR, GSTN, CEIB and the GST Council Secretariat participated in the
meeting.
th
The meeting focused on advancing discussions on process-oriented reforms under GST, with
emphasis on improving ease of compliance, enhancing consistency in implementation and
making GST procedures more business-friendly. The deliberations reflected the shared
objective of strengthening systems, reducing procedural complexities and promoting greater
uniformity across jurisdictions in keeping with the spirit of cooperative federalism.
The meeting provided an opportunity for detailed deliberations and exchange of views on
these issues and concluded on a note underscoring the importance of continued coordination
and constructive engagement between the Centre and the States as GST processes evolve.
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5th NATIONAL COORDINATION MEETING
Notification No. 20/2025 – Central Tax
dated 31.12.2025 issued to notify Central
Goods
and
Services
Tax
(Fifth
Amendment) Rules, 2025
The
Central
Government,
vide
this
Notification, has notified the Central Goods
and Services Tax (Fifth Amendment) Rules,
2025, to amend the Central Goods and
Services Tax Rules, 2017. The notification
inserts a new Rule 31D, providing a special
valuation mechanism for specified goods
whereby,
notwithstanding
anything
contained elsewhere in the valuation rules,
the value of supply shall be deemed to be the
declared retail sale price (RSP) on such
goods, reduced by the amount of applicable
tax. The rule applies to pan masala,
unmanufactured
tobacco
(other
than
tobacco leaves), cigars, cheroots, cigarillos
and cigarettes, other manufactured tobacco
and tobacco substitutes, and products
containing tobacco or nicotine substitutes
intended for inhalation without combustion,
falling under tariff headings 2106, 2401,
2402, 2403 and 2404. The rule prescribes a
formula for determining the tax component
from the RSP and defines retail sale price as
the maximum price declared on the package,
inclusive of all taxes, duties, surcharge or
cess. Where multiple RSPs are declared, the
highest such price shall be adopted, and any
increase in the declared RSP at any stage
before, during or after supply shall be
treated as the applicable RSP. Further,
where different RSPs are declared for
different areas, the respective area-wise RSP
shall apply for valuation.
The amendment also inserts a new clause (f)
in the first proviso to rule 86B, providing
that
registered
persons
other
than
manufacturers shall be exempt from the
restrictions under rule 86B in respect of
goods covered under rule 31D, where tax has
already been paid by the supplier on the
basis of retail sale price. The provisions of
the notification shall come into force with
effect from 1st February, 2026.
Notification No. 19/2025 – Central Tax
dated 31.12.2025 issued to notify supplies
under section 15(5) of CGST Act for
valuation based on Retail sale price (RSP)
The
Central
Government,
vide
this
Notification, has amended Notification No.
49/2023–Central Tax, to prescribe valuation
of supply of certain specified goods on the
basis of the declared Retail Sale Price (RSP)
under the Central Goods and Services Tax
Act, 2017. Issued in exercise of the powers
under sub-section (5) of section 15 of the
CGST Act, on the recommendations of the
GST Council, the notification provides that
for
goods
such
as
pan
masala,
unmanufactured
tobacco
(other
than
tobacco leaves), cigars, cheroots, cigarillos
and cigarettes, other manufactured tobacco
and tobacco substitutes, as well as products
containing tobacco or nicotine substitutes
intended for inhalation without combustion
which fall under tariff headings 2106, 2401,
2402, 2403 and 2404 of the Customs Tariff
Act, 1975, the value of supply shall be
determined with reference to the RSP
declared on the package. The RSP has been
defined as the maximum price declared on
the package, inclusive of all taxes, duties,
cess or surcharges, by whatever name called.
Where more than one RSP is declared, the
highest of such prices shall be deemed to be
the retail sale price, and any alteration in the
RSP at any stage before, during or after
supply shall be taken as the applicable RSP
for valuation. The notification further states
that where different RSPs are declared for
different areas, each such RSP shall apply
for valuation in the respective area of sale.
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Notifications
Notification No. 19/2025 – Central Tax (Rate) dated 31.12.2025 issued to amend
Notification 09/2025- Central Tax (Rate), to prescribe GST rates on tobacco products
The Central Government, in exercise of the powers conferred under sub-section (1) of section
9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 and on
the recommendations of the Council, has amended Notification No. 9/2025–Central Tax
(Rate) dated 17th September 2025. The amendment revises the rate structure applicable to
specified tobacco and pan masala products with effect from 1st February, 2026. In Schedule
II (9%), a new entry has been inserted to cover biris falling under tariff items 2403 19 21 and
2403 19 29. Further, in Schedule III (20%), new entries have been inserted to cover pan
masala (2106 90 20); unmanufactured tobacco, tobacco refuse [other than tobacco leaves]
(2401); cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes (2402);
Other manufactured tobacco and manufactured tobacco substitutes; homogenised or
reconstituted tobacco; tobacco extracts and essences [other than biris] (2403 (other than 2403
19 21, 2403 19 29)), and products containing tobacco or reconstituted tobacco/nicotine
substitutes and intended for inhalation without combustion (2404 11 00 and 2404 19 00).
Consequentially, Schedule VII (14%) and the entries relating thereto have been omitted.
Notification No. 03/2025-Compensation Cess (Rate) dated 31.12.2025 issued to amend
Notification 01/2025- Compensation Cess Tax (Rate), to prescribe GST rates on tobacco
products
The Central Government, vide this Notification, has further amended Notification No.
1/2017–Compensation Cess (Rate) dated 28th June, 2017. By way of this amendment, the
compensation cess payable under the Schedule to the said notification has been substituted
as “Nil” against all specified serial numbers, covering a wide range of pan masala and
tobacco-related products falling under Chapters 21 and 24 of the Customs Tariff. The
amendment replaces the existing cess rates across all the relevant entries in column (4) of the
Schedule with a Nil rate, thereby fully withdrawing the levy of compensation cess on these
goods. The notification shall come into force with effect from 1st February, 2026.
Advisory & FAQ on Electronic Credit Reversal and Re-claimed Statement & RCM
Liability/ITC Statement
To ensure correct and accurate reporting of reversed and reclaimed ITC and to avoid clerical
mistakes, the Electronic Credit Reversal and Re-claimed Statement (Reclaim Ledger) was
introduced on the GST portal from August 2023 return period onwards for monthly
taxpayers and from July–September 2023 quarter for quarterly taxpayers. This Reclaim
Ledger captures the ITC temporarily reversed in Table 4(B)(2) and its subsequent reclaim in
Table 4(A)(5) and 4(D)(1). As of now, a warning message is displayed if a taxpayer attempts
to reclaim excess ITC in Table 4(D)(1) than the available ITC reversal balance; however, the
taxpayer is still allowed to file Form GSTR-3B. Multiple opportunities have been provided
to taxpayers to report their opening balance of ITC which was reversed earlier but not
reclaimed till that time in the newly introduced Reclaim Ledger. The statement can be
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GST PORTAL UPDATES
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viewed by navigating to Dashboard ›
Services › Ledger › Electronic Credit Reversal
and Re-claimed.
To assist taxpayers in correctly reporting
Reverse
Charge
Mechanism
(RCM)
transactions, another statement titled “RCM
Liability/ITC Statement” (RCM Ledger)
was introduced on the GST portal from
August 2024 onwards for monthly filers and
from the July–September 2024 quarter for
quarterly filers. This statement captures and
tracks the RCM liability reported in Table
3.1(d) of GSTR-3B and the corresponding
ITC claimed in Tables 4(A)(2) and 4(A)(3)
for each return period. A warning message is
generated if the ITC claimed in Tables 4(A)
(2) and 4(A)(3) exceeds the closing balance
of the RCM Ledger along with the liabilities
being reported in Table 3.1(d). Taxpayers
have been given multiple opportunities to
report and amend the opening balance for
both statements, where any transaction
relating to excess ITC reversal or excess
RCM liability/ITC prior to implementation
of these statements could be declared as
opening balance. The RCM Liability/ITC
Statement can be accessed through Services ›
Ledger › RCM Liability/ITC Statement.
Taxpayers are hereby informed that shortly,
negative values or availment of excess ITC
over and above available balance, shall not
be allowed in both the ledgers. Both the
statements shall have a below mentioned
validation for regulation of ITC:
a. The reclaimed ITC in Table 4(D)(1) shall
be lesser than or equal to the combined
values of closing balance of Electronic Credit
Reversal and Re-claimed Statement and ITC
being reversed in Table 4(B)(2) of current
period GSTR-3B. and,
b. The RCM ITC claimed in Table 4(A)2 &
4(A)3 shall be equal to or less than the
combined values of RCM liabilities paid in
Table 3.1(d) of the same GSTR-3B and
closing balance of RCM Liability/ITC
Statement.
In case the taxpayers are already having
negative closing balance in Electronic Credit
Reversal and Re-claimed Statement or RCM
Liability/ITC Statement, the system will not
allow such taxpayers to file their GSTR-3B
until:
a. Mandatorily reversal of such excess
claimed ITC (Negative closing balance) as
per Electronic Credit Reversal and Re-
claimed Statement is made in Table 4(B)(2)
of current period GSTR-3B. In case there is
no ITC available in current period, this
reversal declared in table 4(B)2 will be added
to the liability of the taxpayer in current
period while filing GSTR-3B.
b.
For
negative
balance
in
RCM
Liability/ITC Statement, taxpayer need to
either pay the additional RCM liability
equivalent to negative closing balance in
Table 3.1(d) or reduce the ITC claimed in
Table 4A(2) or 4A(3) to the extent of closing
balance in the current return period.
For more information on Electronic Credit
Reversal and Re-claimed Statement please
refer the advisory dated 17th September,
2024 issued by GSTN by clicking link
https://tutorial.gst.gov.in/downloads/news/itc
_pending_ledger.pdf. Also, detailed advisory
on Introduction of RCM Liability/ITC
Statement can be seen by clicking on
link:https://services.gst.gov.in/services/adviso
ryandreleases/read/514 .
FAQs related to Electronic Credit Reversal
and
Re-claimed
Statement
and
RCM
Liability/ITC Statement has also been issued
by
GSTN
on
the
said
link:
https://services.gst.gov.in/services/advisoryan
dreleases/read/643
Portal update on 29.12.2025
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Consolidated FAQs on GSTR -9/9C for
FY 2024-25
GSTN has published series of FAQ on 16th
Oct, 2025 and 4th Dec, 2025 for assisting the
taxpayer in filing of Annual Return i.e.,
GSTR-9/9C. For convenience, the taxpayer
may access Consolidated FAQs by clicking
here.
Portal update on 17.12.2025
Auto Suspension of GST Registration due
to Non-Furnishing of Bank Account
Details as per Rule 10A
As per Rule 10A, taxpayers (other than
those registered under TCS, TDS or Suo-
moto registrations) are required to furnish
their bank account details within 30 days of
grant of registration or before filing details
of outward supplies in GSTR-1 or IFF,
whichever is earlier. In this regard, the GST
Portal has implemented certain updates to
ensure compliance with Rule 10A.
If a taxpayer fails to furnish bank account
details within the prescribed 30 days from
the date of registration, the system will
automatically suspend the GST registration.
The suspension order issued by the system
can be viewed by navigating to Services >
User Services > View Notices and Orders on
the GST Portal.
Taxpayers can add bank account details
through a non-core amendment. This can be
done
by
navigating
to
Services
>
Registration > Amendment of Registration
(Non-Core Fields) . Once bank account
details
are
furnished,
cancellation
proceedings will be automatically dropped
by
the
system.
If
the
cancellation
proceedings are not dropped automatically
on the same day after adding bank details,
the taxpayer can manually initiate the
process
using
the
“Initiate
Drop
Proceedings” button available at: Services >
User Services > View Notices and Orders >
Initiate Drop Proceedings.
Furnishing bank account details is not
mandatory
for
OIDAR
and
NRTP
taxpayers. However, for OIDAR taxpayers
who select “Representative Appointed in
India” as ‘Yes’, furnishing bank account
details is mandatory.
Portal update on 05.12.2025
Advisory on reporting values in Table 3.2
of GSTR-3B
Table 3.2 of Form GSTR-3B captures the
inter-state supplies made to unregistered
persons, composition taxpayers, and UIN
holders out of the total supplies declared in
Table 3.1 & 3.1.1 of GSTR-3B and is auto-
populated
from
corresponding
supplies
declared in GSTR-1, GSTR-1A, and IFF in
the requisite tables.
GSTN has issued an advisory to inform the
taxpayers that from November, 2025 tax
period onwards, value of supplies auto-
populated in Table 3.2 of GSTR-3B from the
returns/forms mentioned above, are made
non-editable. The GSTR-3B shall be filed
henceforth with the system generated auto-
populated values only in table 3.2.
Further,
in
case
any
modification/amendment is required in the
auto-populated values of Table 3.2 of GSTR-
3B, then the same can be done through
GSTR-1A for the same tax period. The
values thus reported in GSTR-1A shall
change the auto-populated values of table 3.2
in GSTR-3B instantly and the taxpayers can
file their GSTR-3B with the updated values.
Moreover, the amendment of such supplies
can always be reported in Form GSTR-
1/IFF filed for subsequent tax periods.
To ensure that GSTR-3B is filed accurately
with the correct values with no hassle of
frequent amendments, GSTN has advised to
report the correct values in GSTR-1, GSTR-
1A, or IFF. This will ensure the auto-
populated values in Table 3.2 of GSTR-3B
are accurate and compliant with GST
regulations.
Additionally, a FAQ regarding the same has
been
issued
in
the
same
advisory:
https://services.gst.gov.in/services/advisoryan
dreleases/read/640
Portal update on 05.12.2025
FAQs on GSTR -9/9C for FY 2024-25
GSTN has informed that additional list of
Frequently Asked Question along with the
response has been compiled in response to
comment received from various channel. The
additional FAQ dated 04.12.2025 is intended
to further assist the taxpayers in better
understanding of various Tables of GSTR-
9/9C and their key aspects - such as reporting
of various values in Tables. FAQ can be
accessed by clicking here.
Portal update on 04.12.2025
Gross and Net GST revenue collections for
the month of Nov, 2025
Please click on the link below to view the
gross and net GST revenue collections for the
month of Nov, 2025.
https://tutorial.gst.gov.in/downloads/news/ap
proved_monthly_gst_revenue_data_for_publi
shing_nov_2025_final.pdf
Portal update on 01.12.2025
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BEST PRACTICES/OUTREACH PROGRAMMES ACROSS INDIA
GST ‘Seminar-cum-Webinar’ for Taxpayers, Trade Associations & CA/Tax Practitioners’
Association at CGST Commissionerate, Chhatrapati Sambhaji Nagar
CGST Commissionerate, Chhatrapati Sambhaji Nagar in collaboration with DGTS Mumbai
Zonal Unit successfully conducted Seminar-cum-Webinar on “Provisional Refund &
Registration – Low Risk Category” on 02.12.2025.
The programme witnessed an impressive participation of more than 250 attendees, joining both
physically and virtually from various segments of trade, industry, and professional circles. The
session featured insightful deliberations led by subject-matter experts, who elaborated on critical
aspects of the provisional refund mechanism and the streamlined registration process under the
low-risk category. The presentation was followed by an interactive Q&A session, during which
participants actively raised queries and shared
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practical concerns. The clarifications provided by the officials were well-received and
appreciated by attendees.
The hybrid event was aimed at enhancing taxpayer awareness, promoting procedural clarity, and
strengthening compliance. Participants acknowledged the programme as highly productive,
informative, and knowledge-enhancing, please underscoring the importance of such outreach
initiatives by department.
CONGRATULATIONS
In the Picture: Sh. Pankaj Kumar Singh, Additional Secretary, congratulating Dr. Shaifali G. Singh, Director, GSTCS,
on her promotion as Commissioner.
We extend our heartfelt congratulations to Dr. Shaifali G. Singh, IRS (C&IT: 2008), on her
promotion as Commissioner. Her elevation is a recognition of her exemplary professionalism,
leadership and sustained contribution to the tax administration. We wish her continued success and
greater accomplishments in her new role.
IN-HOUSE ACTIVITY
In the Picture: Officers of GSTCS extending New Year greetings and addressing the staff.
In the Picture: Sh. Pankaj Kumar Singh, Additional Secretary, welcoming the New Year with a cake-cutting
ceremony.
GSTCS welcomed the New Year with great zeal and enthusiasm, celebrating the occasion
with a cake-cutting ceremony and extra-curricular activities among staff members. The
celebrations were further enriched by inspiring addresses from the Additional Secretary,
Joint Secretary and the Director, who extended warm New Year greetings and underscored
the importance of dedication, discipline and maintaining a healthy work–life balance as the
organisation steps into the year ahead.
The Precautionary Principle is a foundational concept of modern environmental law that
emphasises preventive action in the face of environmental risk, even where scientific certainty is
not absolute. The principle requires that where an activity poses a threat of serious or
irreversible environmental harm, the absence of complete scientific evidence should not be used
as a reason to defer protective measures. It also places the burden of proof on the proponent of
the activity to demonstrate that the proposed action is environmentally safe, rather than on
affected persons to establish harm. At the international level, the principle is expressly
recognised in Principle 15 of the Rio Declaration on Environment and Development (1992),
which calls upon States to apply precaution according to their capabilities. In India, the Supreme
Court has firmly embedded the Precautionary Principle into domestic law, most notably in
Vellore Citizens’ Welfare Forum v. Union of India, holding it to be an essential component of
sustainable development and part of the law of the land.
Precautionary Principle
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LEGAL CORNER
Polluer Pays Principle
The Polluter Pays Principle is a key tenet of environmental law that requires those responsible
for causing pollution to bear the cost of preventing, controlling and remedying the resulting
environmental harm, rather than the burden falling on society at large. Originating in
international discourse, including recognition in Principle 16 of the Rio Declaration (1992),
the principle is widely accepted as a mechanism to internalise environmental costs and
promote sustainable development. In India, the Supreme Court has repeatedly upheld the
Polluter Pays Principle, notably in Vellore Citizens’ Welfare Forum v. Union of India, where it
was held that industries causing environmental damage must not only compensate affected
individuals but also bear the cost of ecological restoration. This doctrine underlines that
environmental responsibility and economic activity must go hand in hand
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5th NATIONAL COORDINATION MEETING GALLERY
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DISCLAIMER: This newsletter is the in-house effort of the
GST Council Secretariat. The contents of this newsletter do not
represent the views of GST Council and are for reference
purpose only.
Printed & Published by
GST COUNCIL SECRETARIAT
5th Floor, Tower-II, Jeevan Bharati Building,
Connaught Place, New Delhi 110 001
Ph: 011- 23762656
