Overview of the New GST Rules

In accordance with Notification 12/2024, the Central Government has announced several amendments that took effect on February 11, 2025. These updates are crucial for anyone engaging in GST processes, whether for business registration, filing returns, or generating e-way bills.

Key Updates and Their Implications

The specific areas of change include:

GST Registration Processes

E-way Bill Requirements

GST Returns and Liability Adjustments

Changes in GST Registration Processes

Previously, businesses had two options for GST registration: through Aadhaar authentication or without it. Here’s how the changes impact the process:

Aadhaar Authentication Requirement:

If you opt for Aadhaar authentication, your application will be subject to a risk assessment based on your data parameters. If deemed high risk, a physical verification may be needed.

Non-Aadhaar Authentication:

Starting from February 11, 2025, if you choose to register without Aadhaar authentication, your application will not be submitted until you’ve completed a physical verification process. This verification involves providing documentation that must be validated in person, including:

1) Photographs

2) Proof of identity

3) Relevant business documents like rental agreements or utility bills

Verification Centers:

The government has established facilitation centers where applicants can physically complete their verification, streamlining the registration process for everyone involved.

E-way Bill for Unregistered Persons

A noteworthy change is the introduction of e-way bill regulations for unregistered persons:

Eligibility to Generate E-way Bills:

Starting February 11, 2025, unregistered individuals can generate e-way bills, making it easier for them to engage in the supply of goods while complying with transportation requirements.

To create an e-way bill, unregistered individuals must enroll through a new form, ER-03. This enrollment requires submitting personal details such as PAN.

Unique Enrollment Number:

Upon successful enrollment, individuals will receive a unique enrollment number that is necessary for all future e-way bill transactions.

Amendments to GST Returns

Along with changes in registration and e-way bills, revisions to the GST return process are also significant:

New Table in GSTR-3B:

A revised table in the GST return form GSTR-3B has been introduced to allow businesses to adjust negative tax liabilities. This adjustment mechanism is critical for businesses observing fluctuations in sales and returns, ensuring accurate tax payable.

Functional Implementation:

While provisions for this adjustment were previously offered, their functional implementation is set to take place post February 11, 2025. This new structure allows businesses to accurately report their financial status and reduces the complications arising from excess returns over sales.

Conclusion

These amendments are not just regulatory updates but also signify a move towards simplifying compliance for businesses across India. Both business owners and professionals need to understand these changes to efficiently manage their registrations, returns, and billings. As the GST landscape evolves, staying informed about these rules will enhance operational efficiency and compliance.

For more detailed guidance on GST compliance and related queries, consider joining specialized courses or visiting official resources. Don’t miss out on staying updated with any future changes or insights!

Stay informed and compliant. If you found this information useful, share it with fellow business owners and subscribe for the latest updates on GST regulations!

Youtube video Link-https://youtu.be/8pynhqskmkM?si=lNENSdp3rRcXE4SO

GST FULL COURSE 2025 LIVE BATCH – https://web.gstplatform.com/courses

Also read our other related articles– https://gstplatform.com/union-budget-2025-major-changes-in-tcs-and-tds-provisions-for-businesses-in-india/

The post CHANGES IN GST W.E.F FROM 11.02.2025 appeared first on GST Platform .

Overview of GST Credit Notes

A credit note is a crucial instrument in GST that allows suppliers to adjust the tax liability after issuing an invoice. In simple terms, it serves as a document that reduces the amount due on a previously issued invoice. The changes in regulations surrounding credit notes aim to enhance compliance, reduce tax evasion, and streamline processes for both suppliers and recipients.

Key Changes in Credit Note Issuance

The new provisions regarding credit notes introduced in the amended Section 34 of the GST framework bring about several important guidelines:

Tightened Compliance: The government has become stricter with the rules surrounding credit note issuance. Suppliers must ensure that their adjustments align with the corresponding input tax credits (ITC) claimed by the recipients.

Adjustments Must Match ITC Claims: If a supplier reduces their output tax liability by issuing a credit note, the recipient must also adjust their claimed ITC accordingly. This requirement is aimed at matching credits taken against the liabilities reported.

New Mechanism for Validation: The GST portal will now validate the adjustments made by both suppliers and recipients, ensuring that any reduction in liabilities is substantiated by the corresponding adjustments by the recipient.

Implications for Suppliers and Recipients

Given the new amendments, the relationship between suppliers and recipients will need to become more transparent and accountable:

For Suppliers:

• Liability Reduction Conditional on Recipient Actions: Suppliers may face challenges if the recipient fails to adjust their ITC. If a credit note is issued, but the recipient does not reverse their corresponding ITC, then the supplier’s liability reduction will not be recognized.
• Future Audit Risks: This will likely lead to scrutiny in future audits, making it essential for suppliers to maintain a clear record of all issued credit notes and related communications with recipients.

For Recipients:

• Responsibility to Adjust ITC: Recipients must be vigilant in adjusting their ITC claims when they receive credit notes. Failure to do so could result in discrepancies during tax audits and potential liabilities.
• Limited Options for Credit Note Management: The new provisions state that recipients will not have the option to pending-reject a credit note. They must either accept or reject it, which simplifies the decision-making process but increases accountability.

Example Scenario

To illustrate the implications of the new rule, consider the following scenario:

• Supplier X issues an invoice of ₹1,00,000 with an 18% GST of ₹18,000 to Recipient ABC. ABC claims the entire ITC of ₹18,000 against this invoice.
• The following month, Supplier X issues a credit note for ₹10,000, reducing their tax liability by ₹1,800. In the past, Supplier X could simply make this adjustment without any checks.
• Under the new rules, Recipient ABC must reduce their claimed ITC by ₹1,800 as well, otherwise, Supplier X’s reduction won’t be processed. The government will cross-check to ensure that both parties have adjusted their records in line with the credit note issued.

The Compliance Journey Forward

As these changes take effect, it is imperative for businesses to adjust their accounting systems and internal processes:

Review and Train Staff: Ensure that your accounting team is aware of the new rules surrounding credit notes and understands how to implement the changes.

Maintain Accurate Records: Keep meticulous records of all transactions involving credit notes to safeguard against penalties during audits.

Adopt Compliance Tools: Utilize tax compliance software that reflects the latest amendments in GST regulations.

Conclusion

The amendments to GST credit note issuance rules in 2025 introduce significant adjustments that aim to enhance compliance and transparency among suppliers and recipients. Understanding these changes is not only essential for legal compliance but also crucial for sustaining robust business relationships in the evolving tax landscape.

To stay ahead in the intricate world of GST regulations, ensure that you are not only up-to-date but also proactive in adopting best practices for credit note management. By embracing these changes, businesses can mitigate risks associated with tax compliance and foster better financial practices.

Don’t forget to share this information with your colleagues and partners to ensure everyone is on the same page regarding the latest GST regulations. For more in-depth knowledge on GST guidelines or to join a comprehensive course on GST compliance, feel free to get in touch!

Youtube video Link- https://youtu.be/IEw7EfT2n8I?si=ElffAdds8xlPFycM

GST FULL COURSE 2025 LIVE BATCH –https://web.gstplatform.com/courses

Also read our other related articles– https://gstplatform.com/2789-2/

Also read our other related articles:

The post GST में CREDIT NOTE ISSUE करने के नियम बदल गए 2025 से appeared first on GST Platform .

The Indian government is set to implement a new track and trace mechanism under the Goods and Services Tax (GST) regime. This initiative is aimed at reducing tax evasion, particularly in the trade of certain specified commodities. The changes will significantly affect businesses engaged in these sectors. Key provisions from the Finance Act 2025, including Section 148A and Section 122B, outline this new framework. A uniqueness to this system is the introduction of Unique Identification Marking (UIM) for goods.

Understanding the Track and Trace Mechanism

How it Works

The new system functions by assigning a unique identification mark to specified commodities. This mark assists in tracking goods throughout the supply chain. Once a UIM is generated and affixed, it becomes essential for each item as it moves from one business to another.

Flow Chart of UIM Functionality

UIM Generation: Unique ID is created for a product.

Affixing UIM: The mark is applied to the product and its packaging.

Tracking: As goods are transported, the government can trace their movement using the UIM.

Data Access: Information regarding the product is stored electronically for reporting.

Targeted Commodities

The government will notify specific commodities for this mechanism. Goods likely to fall under this new regulation include:

Cement

Iron

Steel

Pan masala

These sectors have shown significant levels of tax evasion, prompting the need for such measures.

Legal Framework

Section 148A within the Finance Act 2025 empowers the government to enforce this track and trace mechanism for specified commodities. This provision enables better monitoring of goods to mitigate tax evasion.

The Role of Unique Identification Marking (UIM)

UIM Generation and Application

UIMs will be generated and must be affixed to both the goods and their packaging. This mark will display essential information such as:

Product type

Quantity

Origin details

Data Storage and Access

The information linked to each UIM will be securely stored electronically. An online portal will provide access to this data, creating a reliable database for tracking goods.

Benefits for Businesses and the Government

The introduction of UIMs benefits both the government and businesses:

For Businesses: Enhances operational efficiency and minimizes risks related to tax compliance.

For Government: Increases tax revenue and reduces the likelihood of evasion.

Compliance and Reporting Requirements for Businesses

Affixing UIMs

Businesses must follow clear steps to affix UIMs correctly to their goods and packaging. Each UIM needs to be visibly placed and adhere to prescribed guidelines.

Online Portal Reporting

Businesses must report UIM data through the government’s online portal. This process includes submitting:

UIM details

Product information

Delivery details

Machinery Information Reporting

Companies must provide information about the machinery used to manufacture the goods. This submission is similar to the requirements seen in the SRM forms.

Penalties for Non-Compliance

Violation of Provisions

Non-compliance with the new regulations can lead to severe penalties under Section 122 Capital B. Businesses need to understand the implications fully.

Severity of Penalties

Fines associated with violations can be substantial, impacting a company’s finances severely.

Strategies for Avoiding Penalties

To ensure full compliance:

Regularly train employees on new provisions.

Maintain accurate records and documentation.

Utilize the online portal efficiently for reporting.

Conclusion

The new GST track and trace mechanism represents a significant shift in how goods will be monitored in India. Compliance with these regulations is crucial to avoid penalties. Businesses are encouraged to stay informed and consult with GST professionals to navigate these changes effectively. Engaging in these practices will ultimately lead to a smoother transition into the newly structured GST framework.

Youtube video Link-https://youtu.be/YmoA0w9uihQ?si=p_UREwhYuRaEchE3

GST FULL COURSE 2025 LIVE BATCH –https://web.gstplatform.com/courses

Also read our other related articles:https://gstplatform.com/wp-admin/post.php?post=2789&action=edit

The post appeared first on GST Platform .

“After a certificate of registration in FORM GST REG-06 has been made available on the common portal and a Goods and Services Tax Identification Number has been assigned, the registered person, except those who have been granted registration under rule 12 or, as the case may be rule 16, shall within a period of thirty days from the date of grant of registration, or before furnishing the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using invoice furnishing facility, whichever is earlier, furnish information with respect to details of bank account on the common portal.”

In this regard, the GST Department has issued an advisory requesting all taxpayers who have not yet furnished their bank account details on the GST portal, to furnish the same, in order to avoid disruption in their business activities as non-declaration of the same may lead to subsequent suspension and cancellation of the GSTIN.

For the same, the Government is planning to deploy a new functionality with the following features:

1. Failure to furnish the bank account in the stipulated time would result into following:

a) Taxpayer registration would get suspended after 30 days and intimation in FORM REG-31 will be issued to the Taxpayer

b) Taxpayer would be debarred from filing any further GSTR-1/IFF

2. Revocation of Suspension: If the taxpayer updates their bank account details in response to the intimation in FORM REG-31, the suspension will be automatically revoked.

3. Cancellation of Registration: If the bank account details are not updated even after 30 days of issuance of FORM REG-31, the registration after suspension may also be taken up for cancellation process by the Officer.

It is therefore advised that if your bank account details are yet to be updated on the GST portal, the same should be updated at the earliest to avoid suspension of the GST registration.

The post Furnishing of Bank Account details mandatory to avoid GST cancellation appeared first on GST Platform .

Taxpayers would need to provide one-time password (OTP) post entering user id and password, the OTP will be delivered to their Primary Authorized Signatory “Mobile number and E-mail id”.

Tax-payers are requested to keep their email and mobile number of authorized signatory updated on the GST Portal for receiving the OTP communication. This OTP would only be asked, in case the tax-payer changes the system (desktop or laptop or browser) and location.

We can now expect the 2^nd phase to start soon where it will be mandatory for all taxpayers to provide the OTP during login into the GST portal.

Also read our other related articles:

https://gstplatform.com/4-digit-hsn-code-mandatory-w-e-f-1-february-2024/ https://gstplatform.com/new-feature-on-gst-portal-form-gst-drc-01c/

The post OTP authentication for logging-in to GST portal appeared first on GST Platform .