Union Budget 2025 GST, GST rate changes, budget 2025 indirect taxes, CA firm analysis

The Union Budget 2025-26 has brought significant updates in the GST regime that every business and tax professional must understand. While the government maintained its commitment to tax simplification, certain measures will alter operational strategies for MSMEs and corporates alike.

The Finance Bill 2025 proposed rationalization of GST rates across essential and luxury segments. Notifications 09/2025-CTR and 10/2025-CTR introduced rate reductions for select agricultural equipment and electric vehicles, signaling a push for sustainable and inclusive growth. On the other hand, certain luxury items saw a marginal increase to balance fiscal targets.

Another landmark move was the enhanced penalty provisions for GSTR-1 mismatches and delayed returns, intended to reinforce discipline in GST reporting.
Professionals must note that Section 122(1A) now includes facilitators aiding fake invoicing, making it crucial for CAs to ensure their clients’ documentation is airtight.

Overall, Budget 2025 reinforces the message — accurate reporting is the new compliance mantra.