UPDATES
- Implementation of e-Invoicing for units > 50 Crore with effect from 01.04.2021
On 8th March 2021, The Central Board of Indirect Taxes and Customs (CBIC) notified that e-Invoicing will be applicable from 1st April 2021 for businesses with a turnover of more than Rs.50 crores (in any financial year from FY 2017-18 onwards, as intimated in Notification No. 5/2021 – Central Tax.) By way of this notification, e-invoicing is mandatory from 1st April 2021 for entities whose aggregate turnover exceeds Rs. 50 crore in any of the preceding financial years from 2017-18. Earlier, the e-invoicing mandate was made applicable to Rs. 500 crore+ turnover companies in October 2020 and later it was also made mandatory for Rs. 100 crore+ turnover companies from January 1, 2021. Now, the government is also trying to bring in smaller companies under the mandate considering the benefits of e- invoicing for MSMEs. With the integration of the E-invoicing system with the other existing regulatory systems viz. the GSTN and E-way Bill, overall the businesses will stand to benefit and the compliances should become an end-result of streamlined business processes.
2. Compulsory Mentioning of HSN code on invoices e.f 1st April 2021
W.e.f. 1st April 2021 vide Notification No. 78/2020 –Central Tax, dated 15th October 2020, it is mandatory to put 4 digit HSN code in case turnover is less than Rs 5 Crore for B2B invoices and 6 digit in case turnover is more than Rs 5 Crore in all invoice i.e. B2B and B2C.
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 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).
3. QRMP SCHEME
The window to opt-in or opt- out of the QRMP Scheme for the first quarter of FY 2021-22 i.e., From April 1, 2021 to June 30, 2021 is open now at GST Portal.
4. QR CODE IN GST INVOICES
The Central Board of Indirect Taxes and Customs (CBIC) notified the waiver of penalty for non-compliance of capturing dynamic QR code in GST Invoice from December 2020 to June 30, 2021, fixed deadline of compliance to July 1, 2021.
Hence, companies having turnover above 500 Cr. can initiate adding dynamic QR Code on B2C invoices from 1st July 2021. In any case if the taxpayers fail to comply with dynamic QR Code requirements from 1st July 2021, penalty will be levied from 1st December 2020.
5. NEW SERIES OF INVOICES
New/unique series of invoices to be raised for FY 2021-22 as per Rule 46(b) of the CGST Rules, so that there is no duplication or repetition of invoices with the preceding financial year.
6. Cancellation of Invoice Reference Number (IRN)
- Duplicate Cancellation of Invoice Reference Number (IRN) Na t i o n a l Ac a d e m y o f C u s t o m
Cancellation of IRN is possible for the invoice which is already uploaded/ reported to the Invoice Registration Portal (IRP) and for which IRN is generated. • This has to be done within 24 hours of its generation. Some of the basic reasons for the cancellation of IRN by the supplier can be-
- Cancellation of order by the buyer, or
- Mistakes in e-invoice, or
Incorrect/ wrong entry in e-invoice
Disclaimer: Information in this newsletter is for educational purpose only. Bhasin Sethi and Associates assumes no responsibility of any mistakes which, despite of all precautions, may be found therein. The material contained in this document does not constitute any professional advice that may be required before acting on any matter.