5 key changes in GST E-Way Bill & E-invoice for new FY 2025-26 that every business should know in April 2025!
Relevance and Importance:
E-invoice and E-waybill are not just procedural requirements rather primary documentation establishing and authenticating the validity of supply involved and material movement respectively.
With change in the new invoice series in the new FY, it is also important for business to adapt to the recent changes. The absence or defects in these documents not only affects the suppliers but also ITC in the hands of recipients.
While the impact of non-compliance during goods movement and consequent detention could lead to maximum penalty of 200% of the tax involved, the ex post facto impact is also be upto 100% penal consequences, ITC denial, etc.
In this document, we captured the 5 recent changes in generation of these two critical documents which every business must know and factor in their daily operations as we step into the new FY 2025-26.
1. Multi factor authentication for all taxpayers – e-invoice and e-waybill portal
One of the key changes involves the implementation of Multi-Factor Authentication (MFA). Currently, MFA, which requires login using a username, password, and OTP (sent to the registered mobile number, Sandes app, or similar platforms), is mandatory for taxpayers with an Annual Aggregate Turnover (AATO) exceeding Rs 100 Crores since 20th August 2023 and optional for those with AATO exceeding Rs 20 Crores since 11th September 2023.
Starting 1st January 2025, MFA AATO threshold was reduced to Rs 20 Crores and from 1st February 2025 to Rs 5 Crores.
Finally, with effect from 1st April 2025 MFA is mandatory for all other taxpayers and users.
Detailed instructions are available on the E-Invoice and E-Way Bill portals. It is advised to ensure that the registered mobile number is updated with your GSTIN and sub-users are created with the respective mobile number as necessary.
Source: GSTN Advisory dated 17.12.2024
2. IRN case insensitive
Effective 1st June 2025, the IRP (Invoice Reporting Portal) would treat invoice/document numbers as case-insensitive for the purpose of IRN generation. To ensure consistency and avoid duplication, invoice numbers reported in any format (e.g., “abc”, “ABC”, or “Abc”) would be automatically converted to uppercase before IRN generation. This change aligns with the treatment of invoice numbers in GSTR-1, which already treats them as case-insensitive.
Source: GSTN advisory dated 04 April 2025,
3. E-invoice 30 days time limit for T/O > 10 crores
Taxpayers are not allowed to report invoices older than 30 days on the date of reporting and this restriction was initially imposed for taxpayers with AATO greater than 100 crores from 1st Nov 2023.
This threshold has then been lowered to cover taxpayers with an AATO of 10 crores and above from 1st April 2025. Therefore, they would not be allowed to report e-Invoices older than 30 days from the date of reporting on IRP portals.
This restriction would apply to all document types (Invoices/Credit Notes/Debit Notes) for which an IRN is to be generated.
For example, if an invoice is dated 1st April 2025, it cannot be reported after 30th April 2025. The validation built into the invoice registration portals (IRP) would disallow the user from reporting the e-Invoice after the 30-day window. Hence, it is essential for taxpayers to ensure that they report the e-Invoice within the 30-day window provided by the new time limit.
This changes affects not only suppliers but also buyers, as the buyers ITC could be denied if e-invoice is not reported on timely basis. To avoid delays internal system should be strengthened by integrating accounting softwares and ERP system to IRN portal for auto generation of e-invoices on real time basis.
It may be noted that for business with less than 10 crores but above 5 crores AATO, though e-invoice is mandatory, the 30 days time restriction is not currently imposed.
Source: GSTN Advisory Dated 05/11/2024
4. E-waybill time limit 180 days
The generation of E-Way Bills will be restricted to documents dated within 180 days from the date of generation. For instance, documents dated earlier than 5th July 2024 will not be eligible for E-Way Bill generation starting 1st January 2025.
Source: GSTN Advisory dated 17.12.2024
5. E-waybill extensions capped at 360 days
The extension of E-Way Bills will be limited to 360 days from their original date of generation. For example, an E-Way Bill generated on 1st January 2025 can only be extended up to 25th December 2025.
Source: GSTN Advisory dated 17.12.2024
Conclusion:
Businesses should take adequate support and guidance from professionals to ensure due compliance and avoid harsh consequences in the form of penalty and litigations due to non-adherence.
The internal operation team should be thoroughly trained for all scenarios and such team is not only limited to accounts and finance, but should comprehensively cover all departments & divisions including the sales team to ensure terms are properly agreed upon in line with the legal requirements and the warehouse & logistics team in the despatch & receipt SOP.
Business should consider updating the accounting software, ERP and internal controls to ensure timely e-invoice IRN generation and e-waybills on real-time automated basis.
Author Bio
Thank you for your information
Is GTA are required to generate e-invoices or not, not opted for FCM, crossed turnover 5 crores, please suggest
Thank you sir. Please note that GTA is one in the list of those exempted from generation of e-invoice, irrespective of the turnover – As per CBIC Notification No. 13/2020-Central Tax, dt. 23-03-2020. Hence GTA is not required to raise e-invoice.