Notified Amendments in declaring HSN/SAC in Tax Invoice & GSTR-1

This update is regarding amendments notified in declaring HSN/SAC in Tax Invoice and GSTR-1:

1. HSN/SAC mandatory on Tax Invoices w.e.f.01-04-2021:

S. No Aggregate Turnover in the preceding Financial Year HSN/SAC to be mentioned

  • 1. more than Rs.5crores HSN Code of 6 Digits is mandatory for all tax invoices (B2B & B2C)
  • 2. up to Rs.5crores HSN Code of 4 Digits is mandatory for all B2B tax invoices.
    üOptional for B2C tax invoices

[pt_view id=”c8bb8e9z6d”]

Implication of above amendment

HSN/SAC has to be mentioned on Tax Invoices for all B2B & B2C transactions

2. Rate of Tax column added in GSTR-1 for each HSN/SAC furnished in HSN summary of outward supplies:

In column 6 of Table 12 -Rate of Tax to be declared instead of Total Value in GSTR-1of May’21and onwards

India’s once-in-a-century budget runs into trouble as virus strikes back

Implication of above amendment

There is a requirement to incorporate HSN wise entries in accounting ledgers of accounting software. So that required information i.e., HSN with the rate of tax can be derived for GSTR-1.

Following Information/fields should be available from accounting records to prepare GSTR1:
HSN Description UQC Total Quantity Total Taxable Value Rate % GST-IGST/CGST/SGST

GST – Key Highlights of 42nd Council Meeting

W.e.f 1st Jan’ 2021, the following shall apply:

  • GSTR-1 Due date for quarterly taxpayers – 13th of next month of the quarterIn case of GSTR-3B
  • Tax liability shall be auto-populated from GSTR-1 and ITC from GSTR-2A/GSTR-2B
  • Form GSTR-1 must be filed before GSTR-3B
  • Quarterly return filing with monthly payment option for individuals whose TO in PFY is less than 5 Crores.
gstr 3b

2. W.e.f -1 April 2021, the following shall apply:

  • 6 Digit HSN/SAC is mandatory if TO is more than 5 Crores
  • 4 Digit HSN/SAC is compulsory for all B2B supplies if TO is less than 5 Crores
  • 8 digit HSN is mandatory for notified persons

3. Existing GSTR-1 and GSTR-3B mechanism is extended till 31.03.2021

4. Refund to be disbursed in a validated bank account linked with PAN & Aadhar of the registrant.

Recent Post:-

Gstr-2B Form- Invoice Level Input Credit Statement

1. Gstr-2B is not a Return.Its similar to GSTR-2A with some exceptions

2. It is an auto-populated static ITC statement which will clearly show ”ITC available and not available” for every invoice on a monthly basis

3. It will be made available once a month on 12th of every succeeding month

4. For example, GSTR-2B generated on 12th September 2020 shall contain invoices uploaded and filed by suppliers between 12th August 2020 to 11th September 2020

Gstr 2B

5. GSTR-2B also contains info on Imports from other countries and SEZ’s

6. Invoices will be marked as ITC Not Available in two cases:

  • If the supplier files the invoice after 30th September of succeeding year of invoice i.e. Section 16(4)
  • If POS is different from the recipient state

7. GSTR-2B provides an option to search invoice and to request statement over an e-mail

Recent Post:-