Big news is coming for businesses, especially those with higher turnovers.
From 2025, Multi-Factor Authentication (MFA) will be mandatory for businesses with a turnover over ₹20 crore. Here’s what you need to know about the upcoming changes.
Key Changes from 2025
MFA for E-Way Bills and E-Invoicing
Starting January 1, 2025, businesses with a turnover of more than ₹20 crore will need to use MFA. From April 1, 2025, this rule will also apply to businesses with a turnover over ₹5 crore.
The aim is to stop fake billing and improve the security of the GST system.
New Rules for E-Way Bills
1) E-Way Bills will not be allowed if 180 days have passed since the challan date.
2) Extensions for E-Way Bills will only be given up to 360 days from the challan date.
Understanding the E-Way Bill System
The E-Way Bill is a digital document used for transporting goods under GST. Here’s how it works:
1) It has a unique 12-digit number, generated online through the GST or E-Way Bill portal.
2) It is required for goods worth ₹50,000 or more, whether moved within the state or across states.
3) It applies to goods transported by road, rail, air, or waterways.
How to Generate an E-Way Bill
Generating an E-Way Bill is simple and done online. However, failing to do so can have serious consequences:
1) Goods and vehicles can be seized.
2) A penalty of 10% of the goods’ value or ₹10,000 (whichever is higher) may be charged.
3) Delivery may also be delayed.
Additional GST Updates
The GST Council is expected to discuss relief measures for hotel owners and e-commerce businesses this week.
There are also proposals for GST relief on insurance under consideration.
These changes are aimed at improving the GST system and addressing business concerns.
