Stay compliant and avoid penalties by understanding these critical GST updates effective in 2025:
Mandatory Multi-Factor Authentication (MFA) – Effective April 1, 2025
Starting April 1, 2025, all GST-registered taxpayers must use Multi-Factor Authentication (MFA) to access the E-Way Bill and E-Invoice systems. Failure to comply may result in login issues and penalties under Section 122(1)(xiv), which can be up to ₹10,000 or the tax evaded, whichever is higher.
Case-Insensitive Invoice Reference Numbers (IRNs) – Effective June 1, 2025
From June 1, 2025, the Invoice Registration Portal (IRP) will treat invoice numbers as case-insensitive. For example, “abc123” and “ABC123” will be considered identical. This change aims to prevent duplication errors and ensure consistency across filings.
30-Day Time Limit for E-Invoice Reporting – Effective April 1, 2025
Businesses with an Annual Aggregate Turnover (AATO) exceeding ₹10 crore must upload e-invoices to the IRP within 30 days from the invoice date. Non-compliance may lead to denial of Input Tax Credit (ITC) and penalties up to ₹25,000.
📆 180-Day Limit for Document Use in E-Way Bill Generation – Effective January 1, 2025
E-Way Bills cannot be generated for documents (e.g., invoices, delivery challans) older than 180 days from the date of generation. This measure ensures timely documentation and movement of goods.
📅 E-Way Bill Validity Capped at 360 Days – Effective January 1, 2025
The validity of E-Way Bills is now capped at 360 days from the original generation date. Extensions beyond this period are not permitted, and violations may attract penalties up to 200% of the tax amount.
Common Mistakes to Avoid
- Entering incorrect PIN codes or HSN codes.
- Transporting goods without a valid E-Way Bill.
- Failing to cancel unused E-Way Bills.
- Using personal vehicles for business transport without generating an E-Way Bill.
- Engaging in circular trading through fake invoices.
Stay Updated: Regularly check the GSTN portal and official advisories to ensure compliance with the latest regulations.
If you need assistance in implementing these changes or have further questions, feel free to ask!
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