Changes in GST, effective from 1st April, 2025

    Mandatory Input Service Distributor (ISD) mechanism for ITC

      Previously businesses could choose between ISC and Cross-charge method. But now they have to exclusively use ISD mechanism to distribute common ITC among their GST registration.

    10% mandatory pre-deposit of penalty amount for appeals before appellate authority in cases involving only demand of penalty without any demand of tax
   

    e-Invoicing

Business with Turnover over ₹10 crore (previously ₹100 crore) shall generate e-invoice and report it within 30 days from invoice date to invoice registration portal (IRP), if not, invoice is susceptible to be rejected on IRP. Also, IRN must be generated within 30 days from invoice date.

§  Generation of e-invoice (Procedure is as below)

a.       Register on e-invoice portal¹

b.       Get offline tool from portal

                                                                           i.      After logging in: help à tools à bulk generation tool

                                                                         ii.      This will provide an excel based e-invoice preparation tool.

c.        Fill in details in the tool as required

                                                                           i.      Invoice details (date, type, number)

                                                                         ii.      Supplier details

                                                                       iii.      Buyer details

                                                                       iv.      Item/service details

                                                                         v.      Additional details (if any)

                                                                       vi.      If data entry is repetitive and vast then we can preferably create masters (buyer, product, supplier) as per requirements to ease up the process.

d.       Validate and create JSON file

e.       Upload JSON file to IRP

                                                                           i.      Login

                                                                         ii.      e-invoice à Upload JSON

                                                                       iii.      select file

f.         after validation on IRP, it will assign Invoice Reference Number (IRN), then QR and Digital signature will be generated for invoices.

g.       We have successfully generated e-invoice download and print it.

 

         Multi Factor Authentication (MFA) 

Mandatory for all taxpayers from 1^st April 2025. For  login  into IRP, after entering the correct password, additional verification step will take place, it may be as per chosen method i.e. OTP on Registered mobile number/Email or authentication app (Sandes App, NIC-GST Sandes App) or biometrics (Available in future),

         Rationalization of GST rates.
          

     Unregistered person can now generate e-way bill using Form ENR-03

       ¹GST e-invoice portal  

1.     NIC-IRP 1: https://www.einvoice1.gst.gov.in

2.     NIC-IRP 2: https://www.einvoice2.gst.gov.in

      Both portals are interoperable allowing seamless switch overs between them during service disruptions i.e.  when one portal has too much load that it affects it’s operational capacity and slows down servers.