GST Changes from 1st April 2025 | Tax Changes | GST 2025

Summary

Starting from April 1, 2025, several important GST changes are coming into effect, including the mandatory multi-factor authentication for logging into the e-way bill and e-invoice portals, new restrictions on e-way bill generation, and changes to the filing rules for GST returns. Directors will now need biometric authentication for registration, and new GST registration rules will apply for businesses with multiple GST numbers under the same PAN. Additionally, hotel GST rates, tax rates on old cars, and the introduction of ISD registration for branches are also crucial updates. The video emphasizes the importance of keeping track of these changes to avoid compliance issues and make the most of available schemes.

Takeaways

• 😀 The new financial year 2025-26 begins on April 1st, and several GST changes are being implemented from this date.
• 😀 Multi-factor authentication (MFA) will be mandatory for logging into the e-way bill and e-invoice portals from April 1st, 2025.
• 😀 E-way bills can no longer be generated for documents older than 180 days, starting from January 1st, 2025.
• 😀 GST filers who are liable for TDS must now file GSTR-7 monthly, even if no TDS is deducted, effective from April 1st, 2025.
• 😀 Directors selected for biometric authentication must complete the process at any GST facilitation center within their state to ensure smooth GST registration.
• 😀 From April 1st, 2025, if a business has multiple GST registrations under one PAN, it will be mandatory to register as an Input Service Distributor (ISD) for common input credit distribution.
• 😀 The GST rate for hotel services will change from April 1st, 2025, to reflect the actual value charged, not the declared tariff.
• 😀 Used car dealers will face an increase in GST rates from 12% to 18% for the sale of old cars starting April 1st, 2025.
• 😀 It is necessary to start a new invoice series for the financial year 2025-26, whether generating invoices manually or electronically.
• 😀 If a business exceeds the annual aggregate turnover threshold, they need to assess their GST registration requirements, including eligibility for e-invoices or opting out of the QRMP scheme.

Q & A

What significant change is being introduced in the GST system from April 1, 2025?

From April 1, 2025, several key changes are being introduced in the GST system, including the mandatory use of multi-factor authentication (MFA) for logging into the e-Way Bill and e-Invoice portals.

What is multi-factor authentication (MFA), and how does it affect users logging into the e-Way Bill and e-Invoice portals?

Multi-factor authentication (MFA) requires users to verify their identity using multiple factors, such as an OTP sent to their registered mobile number. This is now mandatory for logging into the e-Way Bill and e-Invoice portals from April 1, 2025.

What are the new restrictions for generating e-Way Bills for old invoices from January 1, 2025?

From January 1, 2025, a restriction has been implemented where invoices older than 180 days cannot be used to generate new e-Way Bills. For example, invoices dated before July 5, 2024, cannot generate an e-Way Bill after January 1, 2025.

How has the e-Way Bill extension rule changed in 2025?

Previously, users could extend e-Way Bills without restrictions. Now, the extension is limited to a maximum of 360 days. If an extension is needed beyond this period, the portal will not allow it.

What is the mandatory filing requirement for persons liable to deduct TDS in GST from April 1, 2025?

Persons liable to deduct TDS in GST must now file GST R-6 on a sequential basis, even if no TDS has been deducted during a particular month. This requirement is mandatory from April 1, 2025.

What change has been made in the GST registration process for directors and their biometric authentication?

Directors selected for biometric authentication can now complete their authentication at any GST facilitation center within their home state. If they fail to complete this process, their application reference number (ARN) will not be generated, delaying their registration.

What is the new rule for businesses with multiple GST numbers under the same PAN?

If a person has multiple GST numbers for different branches under the same PAN, they now must select a head office and register for Input Service Distributor (ISD) registration. This is mandatory from April 1, 2025, to distribute common input services' credits.

How have GST rates for the hotel industry changed from April 1, 2025?

From April 1, 2025, the GST rates for the hotel industry have undergone major changes. The GST will now be based on the actual value of the services rather than the declared tariff. Additionally, GST rates for old car sales by dealers have increased from 12% to 18%.

What are the important deadlines for availing the GST waiver scheme in 2025?

Under the GST waiver scheme, if a taxpayer pays the required tax by March 31, 2025, they will be exempt from penalties and interest. However, they must file the relevant application by June 30, 2025.

What new rule has been introduced regarding credit notes in GST from April 1, 2025?

From April 1, 2025, when a supplier issues a credit note, it must be accepted or rejected in the GST portal. Failure to do so will prevent the supplier from reducing their output tax liability and the recipient from reducing their input tax credit.