Latest Updates w.e.f 01st January 2025

Implementation of Multi-Factor Authentication (MFA) in GST Portal

To strengthen security measures on the GST portal, the government has introduced Multi-Factor Authentication (MFA) in a phased rollout:

  • From January 1, 2025: MFA becomes compulsory for businesses with an Annual Aggregate Turnover (AATO) exceeding ₹200 million.

  • From February 1, 2025: The requirement extends to entities with an AATO of more than ₹50 million.

  • From April 1, 2025: MFA will be applicable to all taxpayers, irrespective of turnover.

Taxpayers should ensure their registered mobile numbers are updated to receive One-Time Passwords (OTPs) and familiarize their teams with the new authentication process for seamless compliance

New Restrictions on E-Way Bill (EWB) Generation

Starting January 1, 2025, E-Way Bills can only be generated using base documents issued within the last 180 days. This policy is designed to promote timely and transparent movement of goods while preventing fraudulent activities like backdated invoicing. Businesses should optimize their invoicing and logistics workflows to ensure compliance with this revised time frame.

Cap on E-Way Bill Extension Period

Effective January 1, 2025, the maximum allowable extension for an E-Way Bill (EWB) is limited to 360 days from the date of its initial generation. This change is aimed at curbing indefinite transit times and enhancing logistics efficiency. Businesses are encouraged to streamline their supply chain operations, minimize delays, and track EWB validity to request extensions only when truly required.

Compulsory HSN Code Disclosure in GSTR-1/1A

Starting from the January 2025 tax period, businesses must declare Harmonized System of Nomenclature (HSN) codes in Table 12 of GSTR-1/1A, as per Notification No. 78/2020-Central Tax. The updated requirements are:

  • Businesses with an Annual Aggregate Turnover (AATO) up to ₹5 crore must provide 4-digit HSN codes.

  • Businesses with an AATO exceeding ₹5 crore must furnish 6-digit HSN codes.

This update introduces several enhancements, such as the removal of manual HSN entry, dropdown-based selection, and automatic population of HSN descriptions. Table 12 has been divided into sections for B2B Supplies and B2C Supplies, with a new feature allowing taxpayers to download an updated list of HSN and SAC codes for accuracy and ease of compliance