Know 7 Rules which are changing from 1 Jan 2021
From 1stJanuary 2021, many rules are going to change, that includes implementation of Positive Pay system to curb cheque frauds, mandatory FASTags for all four-wheelers across India and new mode of Goods and Services Tax (GST) return filing facility for small businesses.
1. FASTag mandatory for all four-wheelers
- The Union Ministry of Road Transport and Highways has issued a notification making a FASTag mandatory for all four-wheel vehicles from January 1, 2021.
- FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid or savings account linked to it.
- It is affixed on the windscreen of the vehicle and enables the commuter to drive through toll plazas without stopping for cash transactions.
- Mandatory FASTag is aimed at decongesting toll plazas and saving time and fuel. The government has launched a mobile app through which highway users can buy FASTags which are delivered to the user’s doorsteps within 24 hours.
- FASTag will be mandatory for four-wheelers or M&N category of vehicles that were sold before 1 December, 2017. For this, the Central Motor Vehicles Rules, 1989 were amended.
2. Positive Pay System
- The Reserve Bank of India (RBI) decided to introduce the ‘Positive Pay’ system for cheques from January 1, 2021.
- The concept of Positive Pay involves a process of reconfirming key details of large-value cheques.
- Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, Internet banking and ATM, certain minimum details of that cheque (like date, name of the beneficiary, or payee and amount) to the drawee bank, details of which are cross-checked with the presented cheque by Cheque Truncation System (CTS).
- Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who then take redressal measures.
- Banks will enable the new system for all account holders issuing cheques for amounts of Rs 50,000 and above.
- While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of Rs 5,00,000 and above.
- The National Payments Corporation of India (NPCI) will develop the facility of Positive Pay in CTS, and make it available to participant banks.
3. Quarterly Return Filing System under GST
- Quarterly Return monthly payment (QRMP) scheme will be applicable from 01.01.2020. This is an alternative method of GSTR-3B for Rs 5 crore below. One can still file GSTR 3B. This is an optional scheme.
- Payment under the said scheme shall be as below:
- M1 (1st month of any quarter) – pay challan (GST PMT-06) by 25th day of succeeding month
- M2 (2nd month) – pay challan (GST PMT-06) by 25th day of succeeding month
- M3 (3rd month) – File GSTR 3B (as usual) – 22nd day for Category 1 states or 24th day for Category 2 states
- For taxpayers having an aggregate turnover of more than Rs 5 crores in the previous financial year – Time period for furnishing details in GSTR-3B is till 20th of next moth
- Taxpayers having an aggregate turnover of up to Rs 5 crore in the previous financial year, whosePrincipal place of business is in Category 1 states – Time period for furnishing details in GSTR-3B is till 22nd of next month
- Taxpayers having an aggregate turnover of up to Rs 5 crore in the previous financial year, whosePrincipal place of business is in Category 2 states – Time period for furnishing details in GSTR-3B is till 24th of next month
- Category 1 Group = Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman and Nicobar Islands, Lakshadweep
- Category 2 Group = Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi
4. Contactless card transaction limit increased
- The Reserve Bank of India (RBI) has enhanced limits for contactless card payments from Rs 2,000 to Rs 5,000.
- This will be effective from 1stJanuary 2021 and will be at the discretion of the user.
- The same has been done for e-mandates for recurring transactions through cards and the Unified Payment Interface (UPI).
5. WhatsApp to stop working on some phones
- WhatsApp had announced that it will not provide support to some platforms from January 1.
- The WhatsApp page mentions that it provides support for and recommends using these devices:
- Android running OS 4.0.3 and newer
- iPhone running iOS 9 and newer
- 0and select phones running KaiOS 2.5.1 newer, including JioPhone and JioPhone 2.
6. Hike in car, two-wheeler prices:
- Automakers are preparing to enter 2021 with a revised price list.
- India’s biggest carmaker Maruti Suzuki will increase the prices of its models from January which will vary for different models.
- MG Motor announced that it will be increasing the prices of its offerings in India.
- Renault India announced that it will be increasing the prices of all its cars in India.
- The company confirmed that car prices will be increased by up to Rs 28,000 from January.
- Two-wheeler company Hero MotoCorp also announced that it will increase the prices of its vehicles by up to Rs 1,500 from January 1, 2021, to offset the impact of rising input costs.
7. Dial zero before making landline to mobile calls:
- The department of telecommunications (DoT) has made it mandatory to prefix zero for all calls made from fixed lines to mobiles, effective January 15.
- The telecom department has been asking telcos to make necessary arrangements by January 1 to implement the new system.