Important Regulatory Updates for Businesses - November 2024

Staying updated with regulatory changes is crucial for business compliance. Here are the key updates that businesses need to know this month.

GST Updates

1. E-Invoice Threshold Reduction

Effective Date: November 1, 2024

E-invoicing now mandatory for businesses with turnover above ₹5 crores (reduced from ₹10 crores)
Businesses must generate e-invoices through IRP portal
Non-compliance may result in penalties

Action Required:

Register on e-invoice portal if not already done
Update accounting software for e-invoice generation
Train staff on new procedures

2. GSTR-1 Late Fee Waiver Extended

Late fee waiver for GSTR-1 filing extended till December 31, 2024
Applicable for returns from July 2017 to January 2022
Maximum late fee capped at ₹500

3. GST Rate Changes

New Rates Applicable:

Certain food items: 5% to 12%
Solar panels and equipment: Reduced to 5%
Electric vehicles: Concessional rates extended

Income Tax Updates

1. TDS Rate Changes

Effective: November 1, 2024

TDS on professional fees increased from 10% to 10% (no change, but threshold revised)
New threshold for TDS on rent: ₹2,40,000 per annum (previously ₹2,40,000)

2. ITR Filing Deadline Extension

Belated return filing deadline extended to December 31, 2024
Applicable for AY 2024-25
Late filing fee: ₹5,000 (₹1,000 if income below ₹5 lakhs)

3. Faceless Assessment Scheme Updates

Enhanced digital documentation requirements
Reduced physical hearings
Faster assessment completion timelines

Company Law Updates

1. Annual Filing Due Dates

Important Deadlines:

Form AOC-4 (Financial Statements): Within 30 days of AGM
Form MGT-7 (Annual Return): Within 60 days of AGM
AGM must be held within 6 months of financial year end

2. Director KYC (DIR-3 KYC)

Annual KYC mandatory for all directors
Deadline: December 31, 2024
Non-compliance leads to DIN deactivation
Fee: ₹500 (increases to ₹5,000 after deadline)

3. CSR Compliance

Enhanced disclosure requirements for CSR spending
Mandatory impact assessment for projects above ₹1 crore
Stricter penalties for non-compliance

MSME Updates

1. Udyam Registration Changes

Simplified registration process
Auto-calculation of investment and turnover
Integration with GST and Income Tax databases

2. MSME Payment Terms

Payment to MSMEs must be made within 45 days
Interest payable on delayed payments: 3 times bank rate
Mandatory reporting of MSME dues in financial statements

Labour Law Updates

1. Minimum Wage Revision

Several states have revised minimum wages
Effective from November 1, 2024
Employers must update salary structures accordingly

2. EPF Contribution

Higher pension option available for employees
Deadline for opting: March 3, 2025
Requires payment of differential contributions

3. Professional Tax

State-specific changes in professional tax slabs
Updated deduction rates in Maharashtra, Karnataka, and West Bengal

Banking and Financial Updates

1. RBI Guidelines on Digital Lending

Enhanced KYC requirements for digital loans
Mandatory disclosure of all charges
Cooling-off period for certain loan products

2. FEMA Updates

Revised reporting requirements for foreign investments
Enhanced compliance for overseas remittances
Updated documentation for import-export transactions

Compliance Calendar for November-December 2024

November Deadlines

7th Nov: TDS/TCS payment for October
11th Nov: GSTR-1 filing for October
13th Nov: GSTR-6 filing (ISD) for October
15th Nov: ESI contribution for October
20th Nov: GSTR-3B filing for October
30th Nov: GST Annual Return (GSTR-9) for FY 2023-24

December Deadlines

7th Dec: TDS/TCS payment for November
11th Dec: GSTR-1 filing for November
15th Dec: Advance tax payment (3rd installment)
20th Dec: GSTR-3B filing for November
31st Dec: DIR-3 KYC for directors
31st Dec: Belated ITR filing for AY 2024-25

Action Items for Businesses

Immediate Actions

Review e-invoice applicability and register if required
Update GST rates in billing systems
File pending GSTR-1 returns to avail late fee waiver
Complete Director KYC before deadline
Review and update minimum wage compliance

Medium-Term Actions

Prepare for annual GST return filing
Plan for advance tax payment
Review CSR compliance and documentation
Update MSME payment policies
Conduct internal compliance audit

Long-Term Planning

Implement digital compliance management system
Train staff on new regulatory requirements
Review and update internal policies
Engage professional advisors for complex matters
Set up compliance calendar and reminders

Impact on Different Business Types

Startups and Small Businesses

E-invoice threshold reduction affects growing businesses
Enhanced compliance requirements need attention
Professional help recommended for complex filings

Medium Enterprises

Multiple compliance deadlines to track
Need for dedicated compliance team or advisor
Technology adoption for efficient compliance

Large Corporations

Comprehensive compliance management required
Regular audits and reviews necessary
Proactive approach to regulatory changes

Penalties for Non-Compliance

GST Non-Compliance

Late filing: ₹50 per day (₹20 for nil returns)
Non-filing: ₹10,000 or 10% of tax due (whichever is higher)
E-invoice non-compliance: ₹10,000 per invoice

Income Tax Non-Compliance

Late ITR filing: ₹5,000 (₹1,000 if income below ₹5 lakhs)
Late TDS payment: 1.5% per month interest
Non-filing of TDS returns: ₹200 per day

Company Law Non-Compliance

Late annual filing: ₹100 per day
Director KYC non-filing: DIN deactivation
CSR non-compliance: Penalty up to ₹1 crore

How to Stay Updated

Subscribe to Official Notifications
- CBDT and CBIC websites
- MCA notifications
- State government portals
Professional Advisory
- Engage chartered accountants
- Regular compliance reviews
- Proactive planning
Technology Solutions
- Compliance management software
- Automated reminders
- Digital documentation
Training and Awareness
- Regular staff training
- Compliance workshops
- Industry seminars

How Namratha & Co. Can Help

We provide comprehensive compliance management services:

Regular updates on regulatory changes
Compliance calendar and reminders
Filing and documentation services
Advisory on complex compliance matters
Representation before authorities
Audit and review services

Regulatory compliance is an ongoing process that requires constant attention and updates. These November 2024 updates affect various aspects of business operations. Staying informed and taking timely action is crucial to avoid penalties and ensure smooth business operations.

Our team at Namratha & Co. monitors regulatory changes continuously and helps businesses stay compliant. We recommend conducting a comprehensive compliance review to ensure all requirements are met.

Need help with regulatory compliance? Contact Namratha & Co. for expert guidance and comprehensive compliance management services.