New Changes in Eway bill from 01.01.2025

Key Updates:

1. Multi-Factor Authentication (MFA):
   • Mandatory MFA rollout in phases:
     • From 1st January 2025: Taxpayers with AATO exceeding ₹20 Crores.
     • From 1st February 2025: Taxpayers with AATO exceeding ₹5 Crores.
     • From 1st April 2025: All taxpayers and users.
   • Encouragement to activate MFA immediately for secure and uninterrupted access.
2. Restricting the Period for E-Way Bill (EWB) Generation:
   • EWB generation will only be allowed for documents dated within 180 days of the date of generation.
   • Example: Documents dated before 5th July 2024 cannot be used for EWB generation from 1st January 2025.
3. Restricting Extension Period for EWB:
   • Extension of EWBs will be capped at 360 days from the original generation date.
   • Example: An EWB generated on 1st January 2025 can only be extended up to 25th December 2025.
4. Call to Action for Taxpayers:
   • Taxpayers are encouraged to:
     • Update their registered mobile numbers for MFA.
     • Familiarize themselves with the new system restrictions.
     • Integrate these updates into compliance workflows.

Suggestions for Implementation:

1. Preparation for MFA Rollout:
   • Internal Training: Businesses should organize training sessions for employees responsible for GST compliance to ensure they are aware of MFA requirements and activation processes.
   • System Check: Verify and update GST-registered mobile numbers to avoid delays in accessing the portal after 1st January 2025.
   • IT Infrastructure: Ensure compatibility of internal systems with MFA tools like Sandes and other OTP platforms.
2. Policy Adaptation for EWB Generation:
   • Internal Document Workflow: Adjust invoice and documentation workflows to ensure documents are generated and processed within 180 days to avoid EWB generation issues.
   • Periodic Audits: Conduct regular audits to check compliance with the 180-day rule and identify any outdated base documents.
3. Managing EWB Extensions:
   • Extension Monitoring System: Implement a system to track EWB expiry dates and limit the need for extensions to critical cases.
   • Stakeholder Communication: Notify transporters and logistics partners about the new restrictions to avoid disruptions in the supply chain.
4. Communication and Awareness:
   • Taxpayer Notifications: Proactively communicate these updates to relevant stakeholders, including vendors, transporters, and clients.
   • Compliance Deadlines: Create a compliance calendar highlighting the phased implementation dates to ensure timely adherence.
5. Technology Upgrades:
   • ERP Integration: Update Enterprise Resource Planning (ERP) software to align with the new compliance requirements, particularly for EWB and e-invoice generation.
   • Automated Alerts: Set up automated reminders for upcoming MFA activations, EWB expirations, and document deadlines.
6. Government Engagement:
   • Feedback Channels: If the updates pose challenges, liaise with GSTN or relevant authorities to seek clarifications or request adjustments.

Conclusion:

The phased rollout of MFA and the restrictions on EWB generation and extension reflect GSTN’s efforts to enhance security and compliance. Taxpayers must take proactive measures to adapt their systems, train staff, and communicate changes to avoid disruptions in operations. Early adoption and preparation will ensure smooth compliance with these updates.