Significant updates which would impact the Industry from April 1, 2021
Mentioning HSN code in Invoice now mandatory
- With effect from 01st April, 2021 taxpayers are required to mandatorily declare HSN codes in Tax Invoices.
- Taxpayers having aggregate turnover up to INR 5 crores in the preceding Financial Year – HSN code of 4 digits is mandatory for all the B2B and exports tax invoices and optional for B2C tax invoices.
- Taxpayers having aggregate turnover of more than Rs. 5 crores in the preceding Financial Year – HSN code of 6 digits is mandatory for both B2B and B2C tax invoices.
E-invoicing made mandatory
- The Central Board of Indirect Taxes and Customs (CBIC) has notified that e-invoicing will be mandatory for business to business (B2B) transactions for taxpayers having turnover of over INR 50 crore from 01st April, 2021.
- At present, issuing electronic invoices is mandatory for businesses with turnover of INR 100 crore and more, which has been put into effect from January 1, 2021, while for companies having turnover of Rs 500 crore plus was made effective from October 1, 2020.
At SW India, we are assisting our clients to meet the requirements of the e-invoicing by deploying a tool “GST Robo” which apart from having the functionality of generating e-invoice also helps business with return filings, credit reconciliation, providing mismatch reports to be shared with vendors, dashboards as per requirements.
Please feel free to reach out to us to meet the above requirements and be compliant from 01st April 2021