Key Changes Affecting Consumers and Businesses Starting January 1, 2025

As we step into 2025, several significant regulatory and policy changes will take effect, impacting businesses, consumers, and the economy at large. From higher car prices to updated GST compliance rules and easier visa processes, here’s a breakdown of what’s changing in the new year:

1. Key Changes in GST Compliance

• Mandatory Multi-Factor Authentication (MFA): To improve security, MFA will be required for all taxpayers accessing the GST portal. Businesses and individuals need to ensure their mobile numbers are updated and their systems are ready for this change.
• E-Way Bill Restrictions: E-Way Bills can now only be generated for documents not older than 180 days. This change aims to streamline logistics and will require businesses to adjust their invoicing and supply chain processes accordingly.

2. Automakers to Increase Prices

Starting January 1, 2025, several car manufacturers have announced price hikes:

• Mahindra & Mahindra: Up to 3% increase on SUVs and commercial vehicles due to rising input costs.
• Hyundai Motor India: Prices will go up by up to ₹25,000 on its models.
• Maruti Suzuki: Prices will increase by up to 4% on its vehicles.
• Tata Motors: A 3% increase across passenger vehicles, including electric cars.
• Kia India and JSW MG Motor: These brands will also raise prices to offset rising commodity and logistics costs.

3. Easier Visa Processes for Thailand and the US

• Thailand’s E-Visa Expansion: From January 1, Thailand will expand its e-visa system to all countries, including India, simplifying the online visa application process.
• US Visa Appointment Reschedule: Non-immigrant visa applicants in India will now be allowed to reschedule their appointments once without incurring additional fees. Starting January 17, 2025, changes to the H-1B visa process will offer more flexibility for employers and Indian professionals on F-1 visas.

4. New Telecom Regulations

The government has updated the Right of Way (RoW) rules to accelerate infrastructure development:

• These new rules will streamline the installation and maintenance of telecom equipment like mobile towers and underground cables.
• Temporary telecom networks will be allowed for public events, and a “deemed permission” system will be introduced for critical projects, minimizing bureaucratic delays.

5. Revised RBI Rules for Fixed Deposits in NBFCs

• The RBI has updated its guidelines for Fixed Deposits (FDs) with Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs):
  • Small deposits (up to ₹10,000) can now be withdrawn prematurely without forfeiting interest.
  • For larger amounts, withdrawals will be capped at 50% of the principal or ₹5 lakh, with no interest paid on such withdrawals.
  • NBFCs must notify depositors of FD maturities at least 14 days in advance, down from two months.

6. UPI Limit Extended for Feature Phones

The RBI has raised the transaction limit for UPI 123Pay users, allowing feature phone users to make payments of up to ₹10,000 without needing an internet connection. This change is aimed at benefiting users in rural and semi-urban areas where feature phones remain prevalent.