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
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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
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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