As the Financial Year is ending, below five actions are need to be taken on immediate basis for compliance under GST:-
1. New Invoice series
Ensure to create new/ unique invoice series. The same should be consecutive and unique for a financial year.
Also, multiple invoice series for various branches/segments/Products & Services can be generated which are handled from same GSTIN.
2. Requirement to mention HSN code in Invoice
The HSN to be reported in following manner
|Aggregate Turnover in the Preceding Financial Year||HSN digit to be mentioned|
|Upto Rs.5 Crores||4|
|More than 5 Crores||6|
A registered person having aggregate turnover up to 5 crores rupees in the previous financial year may not mention the number of digits of HSN Code in a tax invoice issued by him under the said rules in respect of supplies made to unregistered persons.
For export invoices, HSN codes should be mentioned at 8 digit level considering the same would be in line with FTP policy and rules.
Further, in case of certain specified chemicals, HSN codes at 8 digit level is mandatory.
3. Letter of undertaking
A registered person opting to make zero rated supply of goods or services without payment of IGST is required to furnish bond or Letter of Undertaking.
Notification No. 37/2017-Central Tax, dated 04.10.2017, requires Letter of undertaking (LUT) to be furnished for a financial year. Thus, LUT for FY 2021-22 is required to be applied online before 31st March 2021.
4. E- invoicing
Registered person whose aggregate turnover (in any preceding financial year effective FY 2017-18 to FY 2020-21) exceeds Rs. 50 Crores would be required to generate E-invoice (i.e. to generate IRN from notified portals) in terms of Rule 48(4) of CGST Rules, 2017 in case of supply of goods or services or both to a registered person.
However, certain specified class of persons are exempt from this requirement, viz.
1. Goods Transport Agency;
2. Passenger Transportation Services provider;
3. Supplying Services by way of admission to exhibition of cinematograph films in multiplex screens;
4. An insurer or a banking company or a financial institution, including a non-banking financial company.
5. QR Coding
Dynamic QR code on B2C supply invoices by the person above 500 crores turnover are required to be printed from 1 April 2021.