Big news has arrived for GST traders, especially those with higher turnovers. Starting from 2025, Multi-Factor Authentication (MFA) will be mandatory for businesses with a turnover exceeding ₹20 crore. Here’s everything you need to know about the upcoming changes.
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Key Changes Effective from 2025
MFA for E-Way Bills and E-Invoicing
Beginning January 1, 2025, MFA will be required for businesses with a turnover of over ₹20 crore.
From April 1, 2025, this will also apply to businesses with a turnover of more than ₹5 crore.
The goal of this change is to prevent fake billing and strengthen security in the GST system.
New E-Way Bill Rules
1) E-Way Bills will not be generated if 180 days have passed since the challan date.
2) Extensions for E-Way Bills will be allowed only up to 360 days from the challan date.
Understanding the E-Way Bill System
The Electronic Way Bill (E-Way Bill) is a digital document used for transporting goods. It tracks the movement of goods under the GST system. Here are some key details:
1) It is a 12-digit unique number generated online via the GST or E-Way Bill portal.
2) Mandatory for goods worth ₹50,000 or more, whether transported interstate or intrastate.
3) Applies to goods moved by road, rail, air, or waterways.
How to Generate an E-Way Bill
The process is entirely online and involves a few simple steps. Not generating an E-Way Bill can lead to serious consequences:
1) Vehicles and goods can be seized.
2) A penalty of 10% of the goods’ value or ₹10,000 (whichever is higher) may be imposed.
3) It may also result in delivery delays.
Additional Updates in GST Discussions
The GST Council is expected to discuss relief measures for hotel owners and e-commerce companies this week. Additionally, proposals regarding GST relief on insurance are under consideration.
These changes aim to make the GST system more robust while addressing the concerns of businesses and industries.