New Financial Year, New Stricter Rules! Major Tax Changes from April 1 – Everything Businesses Need to Know
As the new financial year begins on April 1, 2025, several major changes in GST rules will come into effect. The government is taking stricter measures to prevent tax evasion and make the system more transparent.
What Will Change from April 1, 2025?
Stricter E-Way Bill and E-Invoice System – The National Informatics Centre (NIC) has made the e-way bill and e-invoice system more secure. Now, no invoice can be generated without proper authorization, eliminating any scope for fraud.
Multi-Factor Authentication for GST Portal Login – Logging in with just a password will no longer be allowed. All taxpayers will have to follow OTP-based or other security steps for authentication.
Limited Validity for E-Way Bills – E-way bills will now be valid for only 180 days with a maximum extension of 360 days. Transporting goods using backdated invoices will become difficult.
Sequential Filing of GSTR-7 Returns – The GSTR-7 return (related to TDS) must now be filed in sequence. Skipping a month and filing later will not be possible.
Biometric Verification for Directors – Promoters and directors must now visit a GST facilitation center for fingerprint/biometric verification.
Mandatory ISD Registration – If your company has multiple GST registrations under the same PAN, you must now register as an Input Service Distributor (ISD). Incorrect ITC distribution could lead to a penalty of ₹10,000.
What Tax Experts Say
These changes will enhance security but could make tax filing a bit more complicated. Update your system, train your team, and don’t forget to buy a stress ball!
Shivkumar Ramji, Nangia Andersen LLP
GST rules are getting stricter – backdated invoices won’t be accepted, and non-compliance will lead to swift action. The government wants a simpler and more transparent tax process while cracking down on fraud.
Sandeep Sehgal, AKM Global
Increased Compliance & Monitoring in GST
With tighter scrutiny and stricter regulations, every small and large business must update their systems, train staff, and ensure proper documentation. Failure to comply may result in heavy penalties and technical blockages.