Gst Compliance change in 2025: What every Indian Business must know
In 2025, India’s Goods and Services Tax (GST) system will reach a critical phase that experts say would be the biggest revamp of compliance since the GST’s establishment. With 14 years of experience in the financial services industry, Dishtayate is prepared to assist your organization in confidently and effectively navigating these important reforms.
Here is a brief overview of the main changes to GST compliance that will take effect in 2025, the implications for businesses, and the actionable activities you should take right away.
1. **Mandatory Multi-Factor Authentication (MFA) for GST Portal Access
Starting April 1, 2025, all GST-registered taxpayers must use multi-factor authentication (MFA) in order to access the GST system, regardless of turnover. This method greatly enhances data security by demanding not just a password but also an OTP verification using your registered mobile device and maybe biometric authentication. Early adoption and staff MFA training are essential to avoiding access disruptions.
Action Point:
Make sure the cellphone numbers associated with your GST registration are current, and educate the appropriate staff on the new login procedures.
2. Stricter E-Way Bill (EWB) Regulations
From January 1, 2025, only base documents that are no more than 180 days old can be generated using EWB. Additionally, any EWB’s cumulative extension duration can no longer be longer than 360 days from the original generating date. By requiring the timely transportation of commodities, these regulations seek to prevent fraudulent acts such as backdating.
Action Point:
Workflows for invoices and logistics should be automated, and EWBs should be routinely audited to make sure they are complying with the guidelines.
3. Lower E-Invoicing Threshold & 30-Day Reporting Window
From April 1, 2025, companies with a total sales of INR 1 crore or more must generate and submit electronic invoices for every B2B transaction. Additionally, companies having a turnover of INR 10 crores or more are required to disclose e-invoices to the Invoice Registration Portal (IRP) within 30 days of their generation.
Action Point:
To guarantee real-time compliance, update your invoicing software and integrate it with e-invoicing websites.
4. Mandatory Input Service Distributor (ISD) Registration
Beginning April 1, 2025, all organizations that distribute input tax credits across branches or units are required to register as ISDs under the GST system. More openness and a uniform method of allocating ITC are brought about by this.
Action Point:
If you have many branches or units, decide whether ISD applies to you and begin the registration process.
5. New Invoice Series & Turnover Reassessment
Companies must implement new invoice series and reevaluate their total revenue for FY 2025–2026 in order to establish their eligibility and threshold for various compliances and programs throughout the upcoming fiscal year.
Action Point:
Update your invoice numbers and check yearly turnovers to see if the new regulations apply.
6. Locking of GSTR-3B: End of Manual Editing
Beginning in July 2025, the monthly summary return will be automatically filled up and locked once the system has completed data from other GST forms, such as GSTR-1 and GSTR-3B (for files in August). The manual modification of tax liabilities or outbound supplies will no longer be feasible. Before submitting GSTR-3B, any necessary modifications must be made from GSTR-1A.
Action Point:
Real-time align your buy and sales records, and before filing, settle any discrepancies with your vendors.
7. Three-Year Filing Deadline for All GST Returns
As of July 1, 2025, all GST returns, including GSTR-1, 3B, 4, 5, 5A, 6, 7, 8, and 9, must be submitted within three years of the deadline. Returns cannot be filed beyond this point, and there is no longer any possibility of a condonation or further extensions.
Action Point:
Determine and resolve any backlogs in past-due GST returns by June 2025 to prevent your eligibility to file being permanently revoked.
8. Real-Time GST Data Reconciliation
Because of auto-population, hard-locking of returns, and system-driven checks, it will not be possible to reconcile Input Tax Credit (ITC) and outgoing supply data in real-time. Businesses must ensure meticulous data entry, tight supplier collaboration, and error-free records to avoid inconsistencies and delayed credits.
Action Point:
Install or update accounting and ERP systems that can reconcile GST data in real time.
9. Potential GST Rate/Structure Overhaul (Pending Council Decision)
A more comprehensive GST overhaul, including ideas like eliminating the 12% slab and simplifying the tax structure, has received in-principle approval from the prime minister’s office. Businesses should get ready for rate or slab alterations that can call for adjustments to pricing strategies and compliance workflows, even though final details are anticipated following the August GST Council meeting.
Action Point:
Keep abreast on GST Council rulings and be prepared to react quickly to changes in rates or slabs.
Consequences of Non-Compliance
Failure to adopt these changes can result in:
- Due to the MFA’s failure, access to the GST portal was lost.
- Submissions of GST returns that are past due or invalid
- Interest and sanctions for violations of EWB and e-invoicing
- Inconsistencies in tax credits and a delayed ITC claim
- Legal danger brought on by outdated business practices
How Dishtayate Can Help
With 14 years of expertise, Dishtayate offers:
- Full management of GST compliance, including filing, reconciliation, and reporting
- Technology integration: Simple setup for MFA, e-invoicing, and EWB automation
- Advice for ISD registration: guidance and support for onboarding
- Training: Staff workshops on new GST portal authentication, audit preparedness, and return filing
- Crisis management: Helping with assignments that have deadlines and backlogs
- Comprehensive financial services that cover taxation, accounting, and regulatory compliance
Prepare Today for GST 2025
The 2025 GST compliance revisions need for quick attention, system upgrades, and staff training. By proactively adapting to these changes and avoiding penalties, your business may run more effectively, safely, and with more investor trust.
With 14 years of experience leading financial consulting firms, you can rely on Dishtayate to steer your company through each GST transition and keep you ahead of the curve.
For a professional review of GST compliance and tailored financial solutions, get in touch with Dishtayate right now.
