GST New Rules : Major Changes in GST Rules, New Rules will Come into Effect from December 15
GST New Rules : The Central Government has made a major change in GST-related compliance rules. The new rules will impact small businesses, especially those traders who conduct business across states. These new rules will become mandatory from 15 December.
According to the new GST rules, businesses with an annual turnover of ₹5 crore or more will no longer be able to generate an e-way bill without issuing an e-invoice. This rule will apply to all types of business transactions from 15 December onward. Under the GST tax system, an e-way bill is mandatory when goods worth more than ₹50,000 are transported from one state to another.
Reason for the Rule Change
The Central Government’s National Informatics Centre (NIC) found in its analysis that many businessmen were conducting transactions with B2B and B2E taxpayers using e-way bills without linking them to e-invoices, even though these taxpayers were eligible for e-invoicing. Due to this, in several cases, the information recorded in the e-way bill and the e-invoice did not match standard requirements. As a result, reconciliation between e-way bill data and e-invoice statements was not possible.
Keeping this in mind, GST taxpayers have been instructed not to generate e-way bills without an e-invoice statement from 15 December 2025 onwards. This means that such businesses must prepare an e-invoice statement in order to generate an e-way bill. However, it has also been clarified that e-way bills for transactions with customers or non-suppliers will continue as before.
The Modi-led Central Government implemented the GST system across the country on 1 July 2017. This system was introduced to bring various indirect taxes under a single framework. GST made doing business easier by replacing different tax structures across states with a uniform system. To build consensus on GST-related matters, the government also formed the GST Council, which is chaired by the Union Finance Minister. Finance Ministers of the states or their representatives are members of this council. The GST Council is the highest decision-making authority in the country for all matters related to GST.
