New Delhi: The Business Idea: Start These 4 Businesses With Low Investment, Then Earn Big Every Month”/gas-cylinder-why-was-the-number-of-subsidized-cylinders-reduced-government-explains-the-reaso-750917.html" class="tb-related-post-link" rel="bookmark">Gas Cylinder: Why Was the Number of Subsidized Cylinders Reduced? Government Explains the Reaso is going to introduce track and trace mechanism to catch GST evasion in the new Financial Year 2025-26 starting from April 1. The track and trace mechanism was announced in the budget presented in July for the current financial year. Although the notification regarding this mechanism has not been issued yet, experts are predicting the possibility of implementation of these mechanisms from the coming April.
Use of mechanism
GST expert and chartered accountant Praveen Sharma said that track and trace mechanism will be used for certain types of goods.
It is believed that this mechanism will be used for the entire supply chain of FMCG sector, tobacco related items as well as medicine and cosmetic items. The sale of these types of goods is found to be less than the actual supply. Under the mechanism, the government will have information from the time the goods leave the factory till they reach the retail shop.
GST department will generate a special code
GST department will provide its software to the manufacturers of such goods and they will have to generate a special code for the selected goods. That code will be linked to the software so that there will be no tampering in the information regarding supply of goods.
According to experts, if the manufacturers of goods falling under the track and trace mechanism do not adopt it, then they may have to pay a fine of at least Rs 1 lakh. Changes in GST rules from April 1: From April 1, it will be mandatory for businessmen having annual turnover of more than Rs 10 crore to provide information about e-invoice on the invoice registration portal within 30 days of issuance of the e-invoice. Earlier there was no time limit for providing such information.
Old users will have to update their identity
From April 1, GST portal users will have to provide several identity details for their strong identity. Old users will also have to update their identity. Apart from this, if a businessman has got multiple GST registrations in different states with one PAN number, then it will be mandatory for such businessman to get registered as Input Service Distributor for distribution of input tax credit.
