- Mandatory Multi-Factor Authentication (MFA) for GST Portal Access
- Effective Date: 1st April 2025.
- Applicability: All taxpayers, irrespective of turnover.
- Requirement: Enabling Multi-Factor Authentication (MFA) is compulsory.
- Purpose:
- Enhances security for GST portal access.
- Protects sensitive business data.
- Prevents unauthorized access.
- E-Way Bill Restrictions – Effective 1st January 2025
- Invoice Validity:
- E-Way Bills can be generated only for invoices within 180 days.
- Extensions allowed up to 360 days.
- System Updates:
- NIC to introduce updated versions of E-Way Bill & E-Invoice systems.
- Focus on enhanced security as per government guidelines.
- Mandatory Sequential Filing of GSTR-7.
- Requirement:
- GSTR-7 (TDS returns) must be filed in sequential order.
- No skipping of filing numbers allowed.
- Purpose:
- Ensures accurate reconciliation of Input Tax Credit (ITC).
- Streamlines the TDS collection process.
- Improves efficiency and facilitates timely ITC claims.
- Biometric Authentication for Directors
- Applicability:
- Promoters/Directors of Public Limited, Private Limited, Unlimited, and Foreign Companies.
- Process:
- Biometric authentication can be completed at any GST Suvidha Kendra (GSK) in the home state.
- No need to visit a jurisdictional GSK.
- Objective:
- Simplifies the authentication process.
- Enhances convenience for company directors.
- Input Service Distributor (ISD) – Mandatory ITC Compliance from 1st April 2025
- Key Requirements:
- ISD mechanism is mandatory for distributing ITC on common services (e.g., rent, advertisement, professional fees) across GST registrations under the same PAN.
- Businesses must issue ISD invoices for ITC distribution.
- GSTR-6 filing is mandatory every month, due by the 13th.
- ITC Reflection & Compliance:
- ITC will appear in GSTR-2B of the receiving branches for GSTR-3B filing.
- Non-compliance penalties: ₹10,000 or the incorrect ITC availed, whichever is higher.
- GST Rate Changes – Impact on Hotels & Used Cars
- Hotels:
- “Declared Tariff” concept removed – GST will be based on the actual amount charged instead of the published tariff.
- Hotels with accommodation above ₹27,500 per unit/day classified as “specified premises”:
- 18% GST on restaurant services.
- Eligible for Input Tax Credit (ITC).
- New hotels can opt for this rate within 15 days of GST registration acknowledgment.
- Used Cars:
- GST on the sale of old cars increased from 12% to 18%.
- New Invoice Series & Turnover Calculation
- New Invoice Series:
- Businesses must start a new invoice series for the financial year to ensure accurate records and compliance.
- Turnover Recalculation:
- Businesses must recalculate aggregate turnover to determine:
- GST registration liability
- E-invoicing applicability
- QRMP Scheme eligibility
- GST filing obligations
- Helps businesses assess and comply with updated GST requirements for the new financial year.
- GST Waiver Scheme 2025 – Tax Relief Opportunity
- Eligibility:
- Businesses that have paid all taxes up to 31st March 2025.
- Waiver Schemes:
- Apply under SPLO1 or SPLO2 schemes.
- Application Window:
- Within three months of the new fiscal year.
- 9. Credit Note Compliance -Mandatory for ITC Mismatch Prevention
- New Requirement:
- Credit note recipients must accept or reject credit notes via the Integrated Management System (IMS).
- Purpose:
- Prevents Input Tax Credit (ITC) mismatches.
- Ensures accurate GST reconciliation.
- 10. Changes in GST Registration Process (Rule 8 of CGST Rules, 2017)
- For Aadhaar-Based Applicants:
- Biometric authentication & photo capturing at GST Suvidha Kendra (GSK) required.
- Document verification mandatory for the Primary Authorized Signatory (PAS).
- For Non-Aadhaar Applicants:
- Must visit GSK for photo capturing & document verification.
- Important Compliance Requirement:
- Verification must be completed within 15 days, or Application Reference Number (ARN) will not be generated, leading to registration delays.