GST: Business structure changes from FY 2021-22
As we're all set to welcome FY 2021-22, all businesses, service providers & exporters need to make sure they're 'GST-ready' for the new financial year, in the light of certain changes in GST law coming into force from April'21, which would requisite certain modifications in their existing business processes:
1. E-invoicing mandatory for units having aggregate turnover above ?50cr:
a) In terms of Notification No. 5/2021-CT dated 08.03.2021, the tax invoices, issued for B2B and export transactions have to be reported in e-invoicing portal by the taxpayers having aggregate turnover exceeding ?50cr in any of the financial years from 2017-18 onwards w.e.f. 01.04.2021.
b) Any invoice issued other than e-invoice by these taxpayers would be treated as invalid invoice and ITC would not be available to recipients based on such invoices in terms of Rule 48(5) of CGST Rules, 2017.
c) Further, taxpayers should also ensure that their vendors are also complying with this provision wherever applicable.
2. Dynamic QR code for B2C invoices mandatory for units having aggregate turnover above ?500cr:
a) Notification No. 14/2020-CT dated 21.03.2020, as amended, requires dynamic QR code on B2C supply invoices by taxpayers having aggregate turnover exceeding ?500cr in any of the financial years from 2017-18 onwards w.e.f. 01.12.2020. However, the penalty is waived for non-compliance of the above requirement for the period from 01.12.2020 to 31.03.2021 if the said person complies with the above notification w.e.f. 01.04.2021.
b) In terms of Circular 146/2021-GST dated 23.02.2021, QR code shall contain the following details:
3. LUT renewal:
The LUT shall be renewed for the financial year 2021-22 before 1st April 2021 for export of goods or services without payment of tax.
4. Number of digits of HSN code to be specified in invoice w.e.f. 01.04.2021:
5. New invoice series for each FY:
As per Rule 46(b) of CGST Rules, 2017, a unique invoice number for each financial year is required to be adopted. All are therefore advised to adopt new set of serial number for the invoices issued from 01.04.2021.
6. QRPM Scheme for 1st quarter of FY 2021-22:
Taxpayers having aggregate turnover up to ?5cr can opt in or opt out of QRMP (Quarterly Return Filing and Monthly Payment of Taxes) scheme for the FY 2021-22 on or before April 30th 2021.
GST TIMELINE FOR APRIL’21
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