The Goods and Services Tax Network (GSTN) in India has announced significant changes to GST E-Way Bill rules that will take effect January 1, 2025. The new regulations aim to enhance digital security and transparency while streamlining processes within the GST ecosystem. The update follows GSTN’s broader push toward enhanced digital security, including its recent mandate for Multi-Factor Authentication (MFA) for all GST taxpayers.
Under the new rules, E-Way Bill (EWB) generation will be restricted to documents dated within 180 days from the generation date. The measure is designed to prevent the use of outdated or fraudulent documentation in the system. The restriction represents a significant tightening of controls compared to previous regulations, which had more flexible documentation timeframes.
“Buyers can claim an input tax credit only if they have the e-invoice or tax invoice issued by the seller, the goods have been received, the goods qualify for ITC, the supply details are declared in the GST return of the supplier, and the tax on such supply has been paid to the government,” explains Chartered Accountant Ashish Karundia.
“The first step involves the seller generating an e-invoice. Then, the seller will arrange for mechanized transportation of the goods after generating an e-waybill. Once the invoice is generated and uploaded by the seller on the invoice management system (IMS), the buyer can either accept or reject or keep it pending,” says Chartered Accountant Bimal Jain.
The regulations also affect transporters, who risk vehicle seizure if found moving goods without valid EWBs. Additionally, the total extension period for EWBs will be capped at 360 days from the original generation date. The standardization is part of GSTN’s broader efforts to digitize and secure India’s tax infrastructure through enhanced authentication measures.
To ensure compliance, businesses are advised to optimize their supply chain operations, implement EWB validity tracking systems, and maintain clear communication with logistics providers and other stakeholders regarding the new requirements. The changes are part of India’s ongoing digital transformation of its tax administration system, which includes the implementation of stronger digital identity and authentication protocols across the GST ecosystem.
Sources: The Economic Times, Grant Thornton, ClearTax, India Briefing
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