Below are the important changes\steps one should take care before 31st March 2021:-
- E invoicing – Now turnover limit has been reduced to 50 Crore. Central Board of Indirect Taxes and Customs has issued a Notification No. 05/2021 – dated March 08, 2021 Seeks to implement e-invoicing for the taxpayers having aggregate turnover in preceding year exceed Rs. 50 Cr from 01 April 2021. SRS-Any invoice issued without e invoicing where it was applicable will be treated as Void. To avoid technical glitches one should start a little early.
- Mandatory HSN Code – Notification No. 78/2020 – Central Tax, dated 15.10.2020 has been issued to make HSN code mandatory up to 4 digits in the B2B invoices with effect from 01.04.2021 issued by taxpayers whose aggregate turnover in the preceding financial year is upto Rs. 5 crores. For the taxpayers whose turnover in the preceding financial year is more than Rs. 5 crores, HSN code is mandatory up to 6 digits in invoices with effect from 01.04.2021. SRS- This is one of the efforts by the Govt to make more efficient invoicewise reconciliation.
- Claim Refund- Govt has proposed changes in budget via section 16 (4) of IGST act whereby govt has power to notify such class of person or goods or services for refund purpose. SRS-It’s better to claim a refund for FY 2020-21 to avoid uncertainty as it may affect liquidity.
- Apply for LUT – Apply for LUT if not applied for FY 2021-22.
- Reconciliation of Purchase- Reconcile your purchase register with GSTR-3B and GSTR-2A,2B and Eway bill records. SRS- Workout for any DN\CN or reversal etc if any.
- Reconciliation for Sale- Reconcile your sales register along with GSTR-1, GSTR-3B and Form 26AS of Income Tax department. SRS- Workout for any DN\CN or reversal etc if any.
Above information is in summary form. To know more details, please mail to us.