GST 2.0 Rate Change: Update Item Rates and HSN in BUSY Without Mistakes

From 22 September 2025 GST moved to a simpler structure, often called GST 2.0. A year later, many businesses still have a few items on the old rate in their software, and every such bill means short payment, excess charge to the customer, or an ITC mismatch for the buyer.

What changed

The 12% and 28% slabs are largely gone. Compensation cess has been wound down for most goods, with tobacco products treated separately. Always check the rate of your exact HSN in the notification; do not go by the item's common name.

Which rate on a bill near a change date

When the goods move, the invoice is issued and the payment is received on different sides of a rate change, section 14 of the CGST Act decides the rate. The short rule: if two of the three events (supply, invoice, payment) are after the change, the new rate applies; if two are before, the old rate applies. A credit note against an old invoice carries the rate of that invoice.

Check and fix your rates in BUSY

1. Take a backup

   Company > Backup Data, before any bulk change.

2. List items by HSN and rate

   Export the item list with HSN and tax category to Excel and compare with the current rate notification. Sort by HSN so one wrong code stands out.

3. Change the rate from a date

   Administration > Masters > Tax Category > Modify: in Change in Tax Rate give the effective date and the new rate. Bills before that date keep the old rate.

4. Correct HSN in bulk

   Administration > Bulk Updations > Update Item Tax Category / HSN Code. See change GST rate or HSN in BUSY for the full steps.

5. Test one bill

   Make a test sale for each changed tax category, check the rate and amount, then delete it.

6. Review bills already made

   Run the HSN summary for the period. A wrong-rate sale is corrected with a debit or credit note, or an amendment in GSTR-1 / GSTR-1A.

Menu names as given in BUSY's own help on busy.in; they can differ slightly by BUSY version, plan and configuration. Take a backup before changing settings.

Also update

• Price lists, quotations and MRP labels
• E-invoice and e-way bill masters (same HSN and rate as the bill)
• Purchase side: suppliers' bills at a new rate mean lower ITC; check that purchase entries match the bill, not your old master
• Stock that became exempt: ITC on it may need reversal; a rate cut alone does not need reversal

Wrong HSN or rate in bills already made shows up in Bharat GST Champ's ready-to-file checks inside BUSY.

General information, not legal advice. GST and income-tax rules change often: check the latest notifications, circulars and GSTN advisories, and consult your CA or tax practitioner for your own case.

Need it done for you?

Our team sets this up remotely over UltraViewer, usually the same day. Call or message us, or see BUSY services.

Updated 2026-10-27 · Bharat Busy Care, Authorised BUSY Platinum Partner, Sri Ganganagar