Upcoming changes in Tax-invoices, E-Invoice, GST Returns w.e.f. 01-04-2021

In GST Council updates by Manoj P

OptiGST-Casestudy

Here are the significant changes in GST which will be applicable from April 1, 2021.

Tax Invoice (B2C) Tax Invoice (B2B) E-Invoicing GSTR1 GSTR-9

Tax Invoice (B2C)

Self-generated Dynamic QR Code mandatory for B2C Tax Invoice for suppliers above INR 500 Cr turnover

A self-generated dynamic QR code is mandatory in B2C Invoices for taxpayers having turnover above INR 500 crores, with specific exemptions. In case of non-compliance even after 1st April, 2021, it will result in penalty on B2C invoices generated from 1st December 2020 (retrospective effect). CBIC Notification

14/2020

71/2020
89/2020

Tax Invoice (B2B)

HSN Code (number of digits) applicable in Tax Invoices

CBIC Notification
78/2020, 90/2020

Sl# Annual Turnover in the preceding Financial Year Number of Digits of HSN Code
as specified in CGST Notifications:
Remarks (w.e.f. 01-04-2021)
12/2017 78/2020* 90/2020**
1 <= INR 1.50 Crores Nil 4* 4** * HSN Code is optional in B2C Tax invoice for suppliers having turnover upto INR 5 Crores

** 8 digit HSN Code is mandatory in B2B Tax invoice for specific category of 49 chemicals specified in Notification 90/2020, regardless of turnover

2 > INR 1.50 Crores and <= INR 5.00 Crores 2 4* 4** * HSN Code is optional in B2C Tax invoice for suppliers having turnover upto INR 5 Crores

** 8 digit HSN Code is mandatory in B2B Tax invoice  for specific category of 49 chemicals specified in Notification 90/2020, regardless of turnover

3 > iNR 5.00 Crores 4 6** ** 8 digit HSN Code is mandatory in B2B Tax invoice  for specific category of 49 chemicals specified in Notification 90/2020, regardless of turnover

E-Invoicing

E-invoicing applicable for Taxpayers having 50 Cr.+ Turnover

AE-invoicing is mandatory from 1st April 2021 for taxpayers whose aggregate annual turnover exceeds INR 50 crore in any of the preceding financial years from 2017-18. CBIC Notification

05/2021

GSTR1

HSN Code in GSTR 1 (no: of digits & tax-rate in HSN section)

From April 2021, GSTR1 Table-12 (HSN) should include HSN Codes confirming to Notification 78/2020 & 90/2020 (Number of Digits) – please refer the table given above for more details.
Also the GSTR1 Table-12 (HSN) should show GSTR Rate (%) applicable for each HSN.
In other words, HSN + rate-wise information should be displayed
Total value (Taxable + Tax) is not required to be shown in HSN section (Table 12).

Impacted API Reference
API v2.2

Changes in GSTR-1 HSN (Table-12) w.e.f. Aril 2021
Parameter Name Description Field Specifications Remarks
num Serial Number Integer  Integer value should be 1 or above.
hsn_sc HSN of Goods or Services as per Invoice line items Numeric
(Min length:2 Max length:8)
IF Aggregate Annual Turnover (AATO) is  more than 5 Cr hsn_sc should be 6 digit or above
IF AATO is less than 5 Cr hsn_sc should be 4 digit or above
Post April 2021 it is a mandatory  parameter
desc Description of goods sold string
(Max length:30)
Post April 2021  it is an optional  parameter
uqc UQC (Unit of Measure) of goods sold string
(Max length:30)
Post April 2021 it is a mandatory  parameter
qty Quantity of goods sold Decimal (15, 2)  
val Total Value Decimal (13, 2) Post April 2021  this parameter is not required
(If present it should be 0)
txval Taxable value of Goods or Service as per invoice Decimal (11, 2)  
iamt IGST Amount as per invoice Decimal (11, 2)  
camt CGST Amount as per invoice Decimal (11, 2)  
samt SGST Amount as per invoice Decimal (11, 2)  
csamt Cess Amount as per invoice Decimal (11, 2)  
rt Tax Rate Decimal (3,2) Post April 2021 it is a mandatory  parameter
Allowed value [0,0.1,0.25,1,1.5,3,5,7.5,12,18,28]

GSTR-9

GSTR 9 filing last date for FY 2019-20 extended to 31st March 2021

The due date for filing GSTR 9 for the financial year 2019-20 is extended by CBIC to 31st March 2021. CBIC Notification

04/2021

General information

  1. If required/applicable, the Tax Invoice number series may be initialised at the start of the financial year
  2. It is mandatory to file Form GSTR-1 before Form GSTR-3B from 1st April, 2021. This is to ensure appropriate auto-population of ITC information and GST liability on Form GSTR-3B.
  3. GST refunds will be paid only through a validated bank account linked to the permanent account number (PAN) and Aadhaar number of the applicant, from 1 April 2021.

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About the Author

Manoj P

Director (Product Lifecycle Management). Information technology leader with outstanding track record of success in designing, delivering and supporting business-aligned technology solutions on a global scale for Industry-leaders across verticals. He has 29+ years of industry experience, including 20 years in SAP with IVL.