New Functionalities made available for Taxpayers on GST Portal in June, 2021

User experience is the key and keeping in this in mind, new features have been added to the GST portal constantly and some of the new Functionalities were made available for Taxpayers on GST Portal in June, 2021. They are

  1. Moving the records saved in IFF, to later months of same Quarter, by taxpayers under QRMP Scheme

There can be cases where the QRMP Taxpayers have entered the data in the IFF but not submitted. In such cases the records which are saved and not submitted/filed can be moved from one period to another period as well as moved from various periods of the Quarter to GSTR – 1 while filing the return.

• Taxpayers can now MOVE the records saved in their IFF of first month of a quarter (if the time for filing it has expired) to IFF of second month of the quarter.
• Taxpayers can also MOVE the records saved in IFF of first month & second month of the quarter (if the time for filing it has expired) to their quarterly Form GSTR-1 (of the same quarter). Please note that the records can be moved only within a quarter.
• While preparing IFF/GSTR-1 (of later months of same quarter) online, in case of saved records, taxpayers will get a pop-up prompting them to either MOVE the records by selecting YES or delete them by selecting NO.

2. Auto population of GSTR-3B liability, for taxpayers under QRMP Scheme, from their IFF and GSTR 1

The tax liability in the case of QRMP taxpayer, it will be auto populated from IFF filed during the months to GSTR – 3B. This will ensure that there are not data entry errors and correct liability gets reported.

3. Filing for refund of accumulated ITC by taxpayers making exempt/ nil-rated supplies, by selecting an option of not having an LUT number in the refund application

Exports are Zero rated supplies under GST and the exporters have an option to invoice with payment of taxes or without payment of taxes. In cases where the invoice is issued without payment of taxes, the taxpayer has to file a refund application separately to claim the accumulated input tax credit in the electronic credit ledger.

To claim refund, in the Form RFD – 01, the taxpayer has to enter the Letter of Under Taking Number currently. From this month onwards the taxpayers now an option to select any one of the following

• I have a valid LUT number.
• I don’t have a valid LUT number, since I am making only exempt/ nil rated supplies

The above mentioned are the new features added for the taxpayers on the GST portal to provide better user experience. Since auto population is machine driven, it is recommended to cross check the values auto populated before filing for the accuracy. In case of any differences, the values can be over written and correct values should be entered.

System Changes form 1st April 2021 for Businesses

The new financial year starts tomorrow, and there are many activities to be done as per year ending for the organization. Apart from those year-ending activities, some changes must be done from 1st April 2021 with respective compliances from GST, Income Tax & MCA purposes. These changes are statutory for some and for some in improving the ease of doing business. Key changes required to be carried out from 1st April in are listed below

  1. New document series

As per provisions of Goods and Service Tax, the taxpayers must maintain unique number series for the documents being issued by them for every financial year. The document sequence has to be re-set for some accounting packages. It is automatic in some accounting packages, cases where it has to be done manually; the taxpayers have to be careful and complete this step before creating any new transactions for the new financial year. Document Sequence/numbering has to be changed for the following documents in GST

  • Tax Invoice
  • Bill of Supply
  • Tax Invoice Cum Bill of Supply
  • Debit Note
  • Credit Note
  • Delivery Challan
  • Payment Voucher
  • Receipt Voucher
  • Refund Voucher

2. HSN Code

There is also a change in the HSN code requirement under GST to be printed on the Tax Invoice. The following are the changes

  • For taxpayers how are having turnover above ₹, five crores are required to show six digits
  • For taxpayers whose turnover is below ₹, five crores are required to show four digits in business-to-business transactions. In the case of Business to Customer Transactions, it is optional.

The taxpayers have to make necessary changes for the Item master if not updated with the latest provisions.

It is recommended to make changes for the item master with eight digits as it will be applicable in the near future, and changing master data frequently is not advised. Moreover, it is time-consuming and unproductive work.

3. E-invoice

e-invoice is required to be issued by taxpayers whose aggregate turnover is above ₹ 50 crores during the last three years from 1st April 2021.

It is recommended to make changes to the accounting or ERP system to address the above change.

If the taxpayer does not issue an e-invoice, is it not considered a tax invoice, and the recipient cannot take input tax credit at all.

It can be implemented using any of the four methods

  • Application Program Interface (API)
  • Secure File Transfer Protocol (SFTP)
  • Bulk JSON
  • Single JSON

For adopting any of the above methods, the taxpayers can approach any of the GST Suvidha Providers (GSPs or Application Service Providers (ASPs).

Even though the taxpayers will be using the Bulk or Single JSON upload for the generation of e-invoice from the department portal or ASP/GSP solution, the same will not be integrated with the Accounting/ERP system; this may pose a challenge in the future. It is strongly recommended to update the Accounting/ERP system with e-invoice details for future references.

4. LUT

Letter of Undertaking is required to be taken by taxpayers who are making Zero Rated Supplies, and a new one has to be obtained before 1st April 2021.

It is recommended to take the same at the earliest, or it may impact your outward supplies accordingly.

5. Accounting package with audit trail and edit log

As per the latest notification from the Ministry of Corporate Affairs, all companies using accounting packages have to ensure that there is an audit log in the accounting package with the edit log.

Companies have to ensure that they are enabling the same if they maintain the same or request their accountant or CA to do the same.

There is a difference between the audit trail and edit log, in case of audit trail only Who is Who information is captured and in case of Edit log the date elements changed is also captured for future reference.

6. Change in Income Tax Rates – TDS & TCS

Due to the pandemic and lockdowns, the Government has announced a reduction in tax rates up to 31st March 2021 for some sections, and now from 1st April, the new rates or actual rates will be applicable.

It is recommended to verify and enter the new TDS / TCS rates in the masters with the effective date to maintain the audit trail as per MCA notification. In case of shot, deductions of TDS or recovery of TCS penal provisions are applicable.

The above listed are major changes required to be carried out and same may vary from each taxpayer based on his nature of business and turnover. The taxpayers should always remember one thing, cost of non-compliance is a costly affair compared to the cost of compliance. Wherever required the taxpayers should take professional advice and not relay in information available in public domain to their best interests.


Any views or opinions represented above are personal and belong solely to the author, and do not represent those of people, institutions, or organizations that the author may or may not be associated with within a professional or personal capacity unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.

GST Tip – 371

When the application for LUT or Bond is submitted by the taxpayer for export of goods or services and if any information is missing, the concerned officer will issue FORM GST RFD-03 requesting the applicant to file a fresh application in FORM GST RFD-02.

GST Tip – 369

The person who has obtained LUT or executed Bond for export of goods have to export the goods within fifteen days from the expiry of three months of the LUT / Bond execution date or the due date can be extended by the commissioner.

GST Tip – 368

As per Rule 96A, if any registered person wants to supply goods or services without payment of integrated goods and service tax for export of goods or services, have to furnish Letter of Undertaking or Bond to the FORM GST RFD-11 to the jurisdictional Commissioner.