In view of beginning of a new financial year from 01st April, 2021; there are certain provisions in GST Act which have been made mandatory by CBIC and which should be kept in mind in order to avoid any trouble later.

♦ Central Board of Indirect Taxes and Customs (CBIC), in the Notification No. 05/2021 – Central Tax dated 08.03.2021 has amended earlier Notification No. 13/2020 – Central Tax dated 21.03.2020 and has made e-invoicing mandatory for the tax payers having aggregate turnover exceeding Rs. 50 crore from 01st April 2021. Prior to this amendment e-invoicing was mandatory for the tax payers having aggregate turnover exceeding Rs. 100 crore.

♦ Further, Central Board of Indirect Taxes and Customs (CBIC), in the Notification No. 78/2020 – Central Tax dated 15.10.2020 has amended earlier Notification No. 12/2017 – Central Tax dated 28.06.2017 and has made declaration of HSN Code on Tax Invoices of Goods and Services mandatory effective from 01st April, 2021. Summary of the amended provisions is as under:

For Taxpayers (with aggregate Annual Turnover more than Rs. 5 crore during FY 2020-21) – 6 Digits of HSN Code for Goods and Services to be mentioned mandatorily in all Tax Invoices.

For Taxpayers (with aggregate Annual Turnover up to Rs. 5 Crore during FY 2020-21) –

4 Digits of HSN Code for Goods and Services to be mentioned mandatorily in B2B Tax Invoices.

4 Digits of HSN Code for Goods and Services to be mentioned on optional bases in case of B2C Tax Invoices (supplies made to unregistered persons).

For more details links to the notifications has been provided below.

https://taxguru.in/goods-and-service-tax/gst-e-invoicing-turnover-limit-reduced-rs-50-crores-wef-01-04-2021.html

https://taxguru.in/goods-and-service-tax/hsn-code-mandatory-irrespective-turnover-01-04-2021.html

Author Bio

Name: CA Tanvi
Qualification: CA in Practice
Company: N/A
Location: Mumbai, Maharashtra, India
Member Since: 15 Feb 2021 | Total Posts: 1
A Chartered Accountant practicing as a partner in a partnership firm in Mumbai since 2 years. View Full Profile

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4 Comments

  1. Siva says:

    Hi sir,

    As a customer, how I come to know my supplier aggregate turnover is more than or less than 5 crores?

    Is there any way to check in the GST portal based on the GSTIN of the supplier??

    1. Tanvi Oka says:

      Sir, please read the above article carefully.What you are saying is what exactly written in the above article that 6 digit HSN code mandatory for turnover more than Rs. 5 crore. This has been written after taking into account the official notifications issued by CBIC.

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