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Changes in GST that will come in play from 1st April 2021

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Here are the significant changes in GST which will be applicable from April 1, 2021.

  • MCA mandates Companies to use Software with Audit Trail of each Transaction(Govt extends implementation of mandatory audit trail of companies' accounts till Apr 1, 2022)
  • TCS Rates effective from April 1, 2021

 1. E-INVOICING WILL BE MANDATORY 

The Central Board of Indirect Taxes and Customs (CBIC) notified that e-invoicing are going to be mandatory for business to business (B2B) transactions for taxpayers having turnover of over Rs 50 crore from April 1, 2021. More details

2. HSN CODE

HSN/SAC CODE: Notification No. 78/2020 – Central Tax Dated 15/10/2020

Supply (U/s 7(1) of CGST Act 2017)for FY 2020-21 HSN/SCN Code

Consequences
If Supply for previous financial year (i.e. FY 2020-21) is Less than or Equal to Rs. 5 Crores


– B2B Transaction

– Export/SEZ Sales

– B2C Transaction


4 Digits (Mandatory)

4 Digits (Mandatory)
Voluntary
  • Buyer will not be able to Claim ITC.

Note: While Taking ITC on Purchases and other Expenses, kindly verify within the invoice/bill that supplier has mentioned HSN or SAC code of 4 digits because the case could also be .

If HSN or SAC Code isn't Mentioned up to 4 Digits ITC won't be available.
If Supply for previous financial year (i.e. FY 2020-21) is More than Rs. 5 Crores 6 Digits (Mandatory)
  • Buyer will not be able to Claim ITC.

Note: While Taking ITC on Purchases and other Expenses, kindly verify within the invoice/bill that supplier has mentioned HSN or SAC code of 4 digits because the case could also be.

If HSN or SAC Code isn't Mentioned up to 4 Digits ITC won't be available.

After this changes the user needs to change the HSN Code for all the items as per the requirement, with the help of Marg software the user can Update/Change the HSN in all the items at once.

3. Govt extends implementation of mandatory Audit Trail of companies' accounts till Apr 1, 2022

  • The government has extended till April 1, 2022, the date for implementation of rule making it mandatory for companies using accounting software for maintaining their books to use software that allows to record audit trail of every and each transaction.
  • The rule was to return into force from April 1, 2021. However, during a notification on Thursday, the Ministry of Corporate Affairs extended the implementation till April 1, 2022.

4. TCS Rates effective from April 1, 2021

Nature of Receipts  TCS Rates effective from April 1, 2021
If the buyer has provided the PAN Card/ Aadhaar Card

0.1%
If the buyer does not provide a PAN Card/ Aadhaar Card 1%

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