PF, GST, Cheque Clearance: 5 Key Rules to Change from Next Month. Know Details
As August comes to a close, the month of September brings new changes with it. From Aadhaar to the bank, to the price of LPG cooking gas, there are quite a few changes that will take effect as of next month. These new rules and implementations will be affecting your day-to-day life as well as changing the landscape of the economy somewhat. Here are the top five changes you need to immediately take note of for the following month.
Aadhaar-PF Linking Made Mandatory
Starting from the beginning of September, employers will only be able to deposit money into your provident fund (PF) account if your universal account number (UAN) is linked to the Aadhaar card. Additionally, you will only be able to reap the full range of benefits if you complete this linking process. Without the linking of these two elements, neither the employer’s or employee’s contributions will be deposited into the PF account.The Employees’ Provident Fund Organization (EPFO) has amended Section 142 of the Code of Social Security 2020. This will impact several benefits, including contributions towards your pension fund. Make sure to complete the linking before September 1, 2021.
Possible Hike of LPG Rates
Domestic cooking gas LPG prices were hiked on August 18, were hiked by Rs 25 per cylinder. This marked the second straight month that LPG rates were increased. In July, the prices were hiked by Rs 25.50 per cylinder. Given this trend, another change in the cooking gas prices in September could be expected. Since January of this year, the overall hikes have aggregated to an increase of Rs 165 per cylinder.
GSTR-1 Filing Rule Change
In an advisory, the Goods and Service Tax Network (GSTN) informed that starting from September, there would be a rule change. The entity said that Rule-59(6) of Central GST Rules which provides for restriction in the filing of GSTR-1, will come into effect from September 1, 2021. According to the new rule change, a registered person won’t be allowed to file the GSTR-1 form if they have not filed the returns in Form GSTR-3B for the preceding tax period. This restriction would also be applicable for those taxpayers who are looking to file their quarterly returns but have not filed the GSTR-3B form.
Positive Pay System: Cheque Clearing System
In 2020 the Reserve Bank of India (RBI) had issued a notice that it would be rolling out a Positive Pay System. This is essentially a mechanism to verify the details of the issuer to prevent bank fraud. It came into effect on January 1, 2021. With that, the RBI has instructed banks to implement this system when clearing cheques. The rule states that customers who are issuing high-value cheques, i.e., Rs 50,000 and above or Rs 5 lakh and above, need to inform the banks prior to issuing the cheque. If this is not done, the cheque will bounce.
Many prominent banks in India have adopted and rolled out this feature since the rule came into effect. The latest entrant to the list was Axis Bank, which will be implementing the Positive Pay System from September 1, 2021. The bank has already started informing customers of this change via SMS.
SBI Customers to Complete PAN-Aadhaar Card Linking
The State Bank of India (SBI) intimated its customers of the new rule change, wherein all account holders are required to link their PAN cards to their Aadhaar cards by September 30, 2021. If they fail to do so, the identification card and its relevant facilities will be rendered inactive. This would result in customers not being quoted for specific transactions.
Even depositing money for a sum of Rs 50,000 or above in a day will be impossible as a PAN card is mandatory for the process. So, in order to keep availing of these benefits, you will need to link it via the official Income Tax Department’s website.