Stealing GST data and committing fraud in GST will no longer be easy. Starting from April 1, the Multi-Factor Authentication (MFA) rule will be implemented for all GST-registered users.
With the implementation of MFA, it will become difficult to steal another user’s data or commit fraud in the GST system.
Update Your Number on the GST Portal
Under MFA, users will not be able to log in without a One-Time Password (OTP). Therefore, all users should update their phone numbers on the GST portal this month to ensure they receive OTPs without any issues.
Mandatory for All Users from April 1
Since January 1, MFA was introduced experimentally for businesses with a turnover of more than ₹20 crores. Then, from February 1, it was made mandatory for businesses with a turnover of ₹5 crores. Now, from April 1, it will be mandatory for all GST users.
New Update for Businesses
Changes will also be made to the e-way bill rules from April 1. Businesses with a turnover of more than ₹10 crores will be required to submit their e-invoice details to the Invoice Registration Portal (IRP) within 30 days. If they fail to do so, their invoice will be invalidated. Currently, this rule applies to businesses with a turnover of ₹100 crores or more.
Also Read- GST Reduction Announced on Smartphones, TVs, and Other Electronics
Dining in Hotel Restaurants May Become Costlier
From April 1, dining in hotel restaurants may become more expensive. Hotels with room rents below ₹7,500 will now be eligible to claim Input Tax Credit (ITC) under the 18% GST rate.
At present, restaurant services in hotels with room rents below ₹7,500 attract a 5% GST rate. However, if these hotels opt for the 18% GST rate with ITC benefits, food prices in their restaurants may increase.
Additionally, starting April 1, the sale of old conventional and electric cars will attract an 18% GST instead of the current 12%. This rule will apply to agencies dealing in second-hand car sales.