GST rules have changed again in 2025, and it's important for every business to stay updated. From e-invoicing deadlines to HSN code updates, these changes can affect your day-to-day work.

In this blog, we’ll explain all the key updates in a simple way, with clear steps to help you stay compliant and avoid penalties.

GST Compliance Updates 2025

• Key Changes
• How to Adapt
• Simple, Actionable Guide

• 1. E-Invoice Reporting Within 30 Days
  • What’s New?
    Starting April 1, 2025, if your business turnover is more than ₹10 crore, you must report your B2B e-invoices to the Invoice Registration Portal (IRP) within 30 days of the invoice date.
  • Why It Matters:
    If you delay beyond 30 days, the invoice becomes invalid. You won’t be able to use it to claim Input Tax Credit (ITC) — and that’s a loss!
  • Example:
    Invoice Date: April 5, 2025 → Report it by May 5, 2025.
  • Action Plan:
  • Enable alerts in your accounting software.
  • Train your billing/accounting team on this deadline.
  • Avoid last-minute entries.
• 2. E-Way Bill: New Time Restrictions
  • Effective Date: Already in force from January 1, 2025.
  • A. Generation Limitation
    • You cannot generate an e-Way Bill for a document older than 180 days.
    • Example: If your invoice is dated October 1, 2024, you must generate the e-Way Bill by March 30, 2025.
  • B. Extension Cap
    • Extension of an existing e-Way Bill is now allowed only within 360 days from the original date.
    • Example: If generated on Jan 1, 2025, extend only till Dec 27, 2025.
  • Action Plan:
    • Avoid backdated invoices.
    • Ensure transporters know the extension limit.
• 3. Mandatory ISD Registration for Cross-Entity ITC
  • Effective From: April 1, 2025
  • What’s Changing?
    • Businesses with multiple GSTINs under one PAN can no longer use "cross-charging" to distribute common input services.
    • Now, ISD registration (Input Service Distributor) is compulsory.
  • Why It Matters:
    • Wrong method = wrong ITC claim = notices or penalties.
  • Action Plan:
    • Apply for separate ISD GSTIN before April 1, 2025.
    • Route shared expenses like rent, legal, advertising through ISD only.
• 4. HSN Code Requirement: 6 Digits Mandatory
  • Effective From: April 1, 2025
  • What’s New?
    • All taxpayers with turnover above ₹5 crore must use 6-digit HSN codes in e-invoices.
    • The system will reject 4-digit codes.
  • Action Plan:
    • Review all item-wise HSN codes.
    • Update your ERP/billing software.
    • Match HSN codes with GST database.
• 5. New HSN Reporting Rules in GSTR-1 (B2B vs. B2C)
  • Effective From: April 1, 2025
  • What’s Changing?
    • For businesses with turnover above ₹5 crore, HSN-wise reporting in GSTR-1 has been made stricter and clearer:
      • B2B Supplies:
        • Must include 6-digit HSN codes for each line item.
        • Include UQC (Unit Quantity Code), tax rate, and taxable value.
      • B2C Supplies (including exports):
        • Also require 6-digit HSN codes, but aggregated reporting is allowed.
        • You can report total value of supplies per HSN.
  • Why It Matters:
    • Mismatch in HSN reporting leads to scrutiny and blocked ITC for recipients.
  • Action Plan:
    • Categorize sales into B2B and B2C in your software.
    • Configure proper UQC and HSN mapping.
    • Educate staff on difference in reporting formats.
• 6. Multi-Factor Authentication (MFA) for GST Portal
  • Rollout Date: Gradually being enforced from April 2025
  • What’s New?
    • To improve security, MFA (Multi-Factor Authentication) is now mandatory to access the GST portal for all taxpayers.
  • What You’ll Need:
    • Login password
    • OTP (via SMS or app)
    • Possibly an authenticator app in the future
  • Action Plan:
    • Register all authorized users for MFA.
    • Use secure mobile/email IDs to receive OTPs.
    • Avoid shared logins — each user should have their own.