From 1st April 2021, some changes are being made in Goods and Service Tax which taxpayers have to follow and implement the same.
e-invoice is required to be issued by all registered taxpayers having turnover above rupees fifty crores for all B2B transactions.
- Display of HSN codes on Tax Invoice
Taxpayers having turnover above rupees five crores are required to show six HSN code digits on all tax invoices.
Taxpayers who are having turnover below rupees five crores are required to show four digits of the HSN code in case of B2B (Business to Business) and B2C (Business to Customers) optional to show HSN codes.
- Changes in HSN Summary while filing GSTR – 1
While filing GSTR – 1 on a monthly or quarterly basis, the taxpayers have to report the HSN codes as discussed in Point Number 2 in the HSN Summary that is in Table 12 of GSTR – 1.
Cost of Non-Compliance
The cost of non-compliance is always higher than than the cost of compliance. In case if the taxpayers are not adhering to the above changes, then the department can levy a penalty under Section 125 of CGST Act 2017, residuary penal provision of rupees twenty-five thousand for Central Goods and Service Tax and another twenty-five thousand rupees for the State Goods and Service Tax thereby making the penalty amount to rupees fifty thousand.
Taxpayers are requested to make necessary changes in their business process and accounting or billing software or return filing solutions accordingly else the penalties will be levied.
One thought on “Important changes applicable from 1st of April 2021 in GST”
Good compilation of changes in GST wef 01/04/2021.
CMA Anand M. Shembekar