Few Recent Important Changes which taxpayers is required to note while making GST compliances


Few Recent Important Changes which taxpayers is required to note while making GST compliances




Now, quoting of HSN/SAC codes has been made mandatory w.e.f. 01/04/2021. This requires the incorporation of HSN codes in the GST returns to be filed from May onwards. It may be noted that all businesses with turnover exceeding RS.  5 crores are required to upload HSN summary with 6 digit HSN codes. All this requires the updation of the Accounting system or GST software

It may be carefully noted that Section 125 provides for the penalty for non-mentioning or mentioning wrong HSN/ SAC Code on the tax invoices or in Form GSTR-1.

The amount of penalty may extend to Rs. 25,000/- each for CGST and SGST.

In case of taxpayers who are required to file monthly GSTR-1, HSN details of April month has to be filed by May whereas for taxpayers who are filing quarterly GSTR-1 then 4 digit HSN codes of April to June 2021 is required to be filed by July 2021.

There is a change in GSTR -1 Form also. Now at Table 12 of GSTR 1, which incorporate the details of outward supplies of goods or services, minimum 4/6/8 digits is required to be punched.

Further at Table 12, total value in HSN summary is replaced by rate of tax. It means that both HSN wise and rate wise sales reporting is required to be done in GSTR  1 to be filed from 1st May onwards.

Taxpayers are also required to take stock of the different types of products and/ or services so that the HSNs can be divided, falling under the same chapter and same heading or under different chapters with different headings.

Last 2 digits is required to be emphasized and is required to correctly incorporated in case of businesses with turnover exceeding Rs. 5 crores.

It may be noted that the description of goods column will now get auto populated based on HSN reported in GSTR 1 of the supplier.




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