GST compliance will be tighter for all the taxpayers from January 1, 2023 and one of them is the Multi-Factor Authentication (MFA), this feature will be introduced in stages for the signing in to the GST portals, making the process more secure.
Key changes that will impact India’s middle class from January 1
As the year 2024 nears toward an end and the year 2025 begins there are a number of changes that will soon go to effect in the country which will affect the financial ways of handling households and working class employees. Be it the recent shifts in the price of LPG cylinders to the new rules of payments using UPI – these changes will impact various segments of the middle class population of the country. Here are the major changes that would begin from the 1st of January, 2025.
LPG cylinder prices
The current price of crude oil in the International market is $73.58 per barrel, the LPG prices might be raised in January 2025. While the oil marketing companies revise the LPG prices on the first of each month, the price of domestic cylinders (14.2 kg) has remained constant for months now, with the current price of INR 803 in Delhi. The rise especially has to be seen in the backdrop of the fact that the prices of commercial cylinders have been on the rise for the past many months clearly suggesting that the domestic LPG prices too were likely to be spiralled up soon.
Car prices likely to rise
This mean that price of cars shall also hit its highest levels at the start of January 2025 and this means that purchasing a vehicle will be very costly. The major automakers including Maruti Suzuki, Tata Motors, Hyundai, Mahindra, Honda, Kia, Mercedes Benz, Audi and BMW are gearing up to implement vehicle price hike of 2 to 4 per cent from January 1, 2025. To implement this increase, the carmakers have attributed it to the following – higher manufacturing costs, inflated freight charges, growing wages, and fluctuating forex rates.
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Fixed Deposit rules to change
The bank customers must note that even the fixed deposits for Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) have been proposed to be changed from January 1, 2025. This comes as the Reserve Bank of India has unveiled new changes early this year to improve the protection of public deposits.
Changes in GST rules
The new compliance requirements for the GST are set to come in from January 1, 2025 and one of the essential reforms is the MFA which is to be rollout for all GST portal users progressively making it secure. This requirement was earlier mandatory for the business if their Annual Aggregate Turnover (AATO) was over INR 200 million in the case of home country business.
Transaction limit of UPI 123Pay
This new service launched by RBI is for the feature phone users who can’t use internet, from 1 January 2025, there will be an increase in the transaction limit on UPI 123Pay. Before it the minimum and maximum transaction limit for each transaction was set at INR 5,000 while later starting from January 1, 2025 it will be INR 10,000 which will benefit the users of such services.