MM TAX CLUB

The GST Network (GSTN) has announced critical updates to the E-Way Bill (EWB) and E-Invoice systems, set to take effect from 1st January 2025. These updates aim to improve system security and streamline compliance processes for taxpayers, aligning with the latest government guidelines. Here's a quick overview of the key changes and what they mean for your business:

1. Mandatory Multi-Factor Authentication (MFA)

To strengthen the security of E-Way Bill and E-Invoice portals, Multi-Factor Authentication (MFA) will soon be mandatory for all users. MFA requires you to log in using your username, password, and a One-Time Password (OTP) sent to your registered mobile number or compatible apps like Sandes.

Here’s the implementation timeline:

• Currently:
  • Mandatory for taxpayers with an Annual Aggregate Turnover (AATO) exceeding ₹100 Crores (since 20th August 2023).
  • Optional for taxpayers with AATO exceeding ₹20 Crores (since 11th September 2023).
• From 1st January 2025: Mandatory for taxpayers with AATO exceeding ₹20 Crores.
• From 1st February 2025: Mandatory for taxpayers with AATO exceeding ₹5 Crores.
• From 1st April 2025: Mandatory for all taxpayers and users.

Actionable Tip:
Activate MFA immediately to avoid last-minute hassles. Ensure your registered mobile number is updated on your GSTIN to receive OTPs seamlessly. Detailed activation instructions are available on the E-Way Bill and E-Invoice portals.

2. New Restriction on E-Way Bill Generation Period

Starting 1st January 2025, the system will restrict E-Way Bill generation to documents dated within 180 days of the generation date.

Example: If a document is dated 5th July 2024, it will no longer be eligible for E-Way Bill generation after 1st January 2025.

What This Means for You:
Make sure your EWB generation processes are prompt and compliant with the new timeline. Delays in generating EWB may result in non-compliance.

3. Limitation on E-Way Bill Extensions

Extensions for E-Way Bills will now be capped at 360 days from their original generation date.

Example: An E-Way Bill generated on 1st January 2025 can only be extended up to 25th December 2025.

Impact on Businesses:
This change affects businesses involved in long-duration projects or shipments. Plan your logistics and documentation accordingly to prevent disruptions.

Key Takeaways

1. Prepare for MFA: Secure your account and enable MFA to comply with the phased implementation.
2. Review Documentation Timelines: Ensure timely EWB generation and extension within the new limits.
3. Stay Updated: Keep an eye on the E-Way Bill and E-Invoice portals for detailed guidelines and instructions.

By proactively aligning with these updates, businesses can ensure a smooth transition and maintain compliance with GST regulations..

If you’re planning to apply for GST registration, there have been some critical updates you need to be aware of. The application process now includes biometric-based Aadhaar authentication and enhanced document verification in select states.

GST Department time to time implementing biometric aadhar authentication for the different states, it’s very obvious that in upcoming time pan india will cover under biometric aadhar authentication. These changes in GST registration process are being made to cope up with fake GST registration.

Recently department had issued advisory dated 8^th December 2024 citing biometric aadhar authentication implemented with effect from 7^th December 2024 to 4 states Haryana, Manipur, Meghalaya and Tripura.

And now 3 more states have been added for biometric authentication which is Chhattisgarh, Goa and Mizoram.

Let’s dive into the details of GST advisory issued on 15^th December 2024;

1. Amendment to Rule 8 of CGST Rules, 2017

The GST registration process has been updated under Rule 8 to strengthen identity verification. Applicants can now be identified on the GST portal using:

• Biometric-based Aadhaar Authentication
• A photograph taken during the process
• Verification of original documents uploaded with the application

These measures are based on data analysis and risk parameters.

2. Rollout in Select States

The new functionality for biometric-based authentication has been implemented in the following states as of 15th December 2024:

• Chhattisgarh
• Goa
• Mizoram

Applicants from these states must follow the updated process during registration.

3. Email Notification and Authentication Options

After submitting your application in Form GST REG-01, you will receive an email containing one of the following links:

(a) OTP-Based Aadhaar Authentication

• You can proceed with the application using the standard OTP authentication process.

(b) Biometric Authentication and Appointment Booking

• If selected for this option, you will receive a link to book an appointment at a designated GST Suvidha Kendra (GSK) for biometric authentication and document verification.

4. How to Book an Appointment

Applicants required to visit a GSK must use the appointment booking link provided in their email. Once booked, you will receive a confirmation email with the appointment details.

5. Documents to Carry for GSK Visits

During your visit to the designated GSK, ensure you bring the following:

• A copy (hard/soft) of the appointment confirmation email
• Jurisdiction details as mentioned in the intimation email
• Aadhaar Card and PAN Card (original copies)
• Original versions of all documents uploaded during the GST application process

6. Biometric Authentication and Verification Process

At the GSK, all required individuals (as per the GST REG-01 form) will undergo:

• Biometric-based Aadhaar Authentication
• Verification of original documents

7. Timely Appointment Scheduling

Applicants must schedule their biometric verification appointments within the maximum permissible time frame mentioned in the intimation email. The Application Reference Number (ARN) will only be generated after completing the biometric and document verification process.

8. Operational Hours of GSKs

The GST Suvidha Kendras will operate based on the guidelines provided by the state administration. Ensure to plan your visit accordingly.

9. Key Benefits of the Update

• Enhanced security and fraud prevention
• Better identity verification for GST applicants
• Streamlined document verification process

Final Thoughts

The recent changes to the GST registration process aim to improve security and ensure compliance. If you’re an applicant in Haryana, Manipur, Meghalaya, Tripura, Chhattisgarh, Goa, or Mizoram, familiarize yourself with the updated procedures to avoid delays. Be sure to follow the guidelines and complete your registration within the stipulated timeframe.

Stay informed and compliant with these updates to make your GST registration process smooth and hassle-free!

This advisory outlines key points related to the treatment of input tax credit (ITC) discrepancies in Table 8A and Table 8C of GSTR-9 for FY 2023-24. The following highlights summarize the guidance provided:

Key Points:

1. Auto-population Source Change:
   • For FY 2023-24, Table 8A is auto-populated from GSTR-2B, unlike FY 2022-23 when it was based on GSTR-2A. This change may cause:
     • Inflation of ITC for FY 22-23 transactions reported late.
     • Deflation of ITC for FY 23-24 transactions reported in subsequent periods.
2. Manual Reporting in Table 8C:
3. Taxpayers must manually fill Table 8C with ITC for FY 2023-24 availed in the next financial year (FY 2024-25) before the specified time limit.

Common Scenarios and Advisory:

Additional Notes:

• Table 8C and Table 13 should only include ITC transactions directly related to FY 2023-24, aligning with the form’s instructions.
• Follow CBIC's circulars and press releases for precise clarifications on reporting methods.

This structured approach ensures compliance while addressing mismatches and aligning reporting with regulatory requirements.

This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.

1.Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.

2.The above-said functionality has been developed by GSTN. It has been rolled out in Haryana, Manipur, Meghalaya and Tripura on 7th December 2024.

3.The said functionality also provides for the document verification and appointment booking process. After the submission of the application in Form GST REG-01, the applicant will receive either of the following links in the e-mail,

(a)A Link for OTP-based Aadhaar Authentication OR

(b)A link for booking an appointment with a message to visit a GST Suvidha Kendra (GSK) along with the details of the GSK and jurisdiction, for Biometric-based Aadhaar Authentication and document verification (the intimation e-mail)

4.If the applicant receives the link for OTP-based Aadhaar Authentication as mentioned in point 3(a), she/he can proceed with the application as per the existing process.

5.However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail.

6. The feature of booking an appointment to visit a designated GSK is now available for the applicants of Haryana, Manipur, Meghalaya and Tripura.

7. After booking the appointment, the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.

8.At the time of the visit of GSK, the applicant is required to carry the following details/documents

(a)a copy (hard/soft) of the appointment confirmation e-mail

(b)the details of jurisdiction as mentioned in the intimation e-mail

(c)Aadhaar Card and PAN Card (Original Copies)

(d)the original documents that were uploaded with the application, as communicated by the intimation e-mail.

9. The biometric authentication and document verification will be done at the GSK, for all the required individuals as per the GST application Form REG-01.

10.The applicant is required to choose an appointment for the biometric verification during the maximum permissible period for the application as indicated in the intimation e-mail. In such cases, ARNs will be generated once the Biometric-based Aadhaar Authentication process and document verification are completed.

11.The operation days and hours of GSKs will be as per the guidelines provided by the administration in your state.