GST is a dynamic law. It has gone through many additions, changes and alternations ever since its inception. We as business owners, taxpayers, and tax consultants are required to stay updated with all these changes because this will help us to make the right decision for our business and ourselves.
By acknowledging this fact, here we are providing a list of changes in the GST rule that has come into effect from 1st April 2021:
As per GST Notification 05/2021, e-Invoicing is compulsory to generate for entities whose aggregate turnover is more the 50 Cr. Earlier this limit was 100 Cr. But now the government has reduced the threshold value of e-invoices because they are trying to bring the medium to small scale companies under the mandate of invoices.
This is one of the most important changes in the GST Rule. As per GST Notification 90/2020, taxpayers are required to include the HSN code in their tax invoice (for specified products). Earlier the HSN code was mandatory to include in GST invoice only for taxpayers with a turnover of more than 5 Cr. But now the 8 digit HSN code is compulsory for all tax invoices.
From 1 April 2021, it has become mandatory to report a minimum of 4 digit or 6 digits HSN (Harmonized System of Nomenclature) Code in Tax Invoice and Table-12 of GSTR-1. Earlier taxpayers needed to provide HSN-wise invoice value. But now, they need to provide HSN plus rate-wise taxable value and tax amounts in Table-12 of GSTR-1.
Along with generating e-Invoices for B2B transactions and exports, now taxpayers are required to print self-generated QR code on B2C transactions. Failure to do so will come up as a penalty on invoices generated from 1st December 2020. Also, a new notification GST circular No 146/2021 is issued, according to that if payment is done before invoice generation then instead of dynamic QR Code the cross-reference of payment will also do.
Another important change in GST rule! The due date of GSTR 9 & 9C has extended by Central Board Of Indirect Taxes and Customs (CBIC)
Along with these changes, you may find many changes on the GST portal such as:
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