Changes in GST from 1st April 2021 You Must Know

Changes in GST from 1st April 2021 You Must Know

New HSN/ SAC Requirements from 1st April, 2021:

HSN/ SAC Code Requirement for Tax Invoices:

A new amendment made vide Notification No. 78/2020- Central Tax Dated 15/12/2020 requires mentioning of HSN/ SAC codes on tax invoices as prescribed below:

  • For taxpayers having turnover up-to Rs. 5 crore:
ParticularsHSN/ SAC Digits
Supplies made to registered persons4
Supplies made to unregistered personsNIL
  • For taxpayers having turnover more than Rs. 5 crore:
ParticularsHSN/ SAC Digits
Supplies made to registered persons6
Supplies made to unregistered persons6
  • For exporters:
ParticularsHSN/ SAC Digits
Supplies made to registered persons8
Supplies made to unregistered persons8
  • All the tax invoices should contain HSN/ SAC digits, description of goods and tax rates specifically for better transparency and avoid any future litigations.
  • While taking ITC on purchases and other expenses, kindly verify that supplier has mentioned HSN/ SAC code in invoice as required. If HSN/ SAC Code is not mentioned in invoice, then ITC will not be available.
  • Penalty for non-compliance of the provisions is up-to Rs. 50,000 as per Section 125 of the CGST Act.
  • 49 chemicals as notified vide Notification No. 90/2020- Central Tax Dated 01/12/2020 have to be mandatorily shown under 8 Digits. These are annexed as under:
S. No.Chemical nameHSN Code
1Mixture of (5-ethyl-2-methyl-2-oxido-1,3,2- dioxaphosphinan-5-yl) methyl methyl methylphosphonate (CAS RN 41203-81-0) and Bis [(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl] methylphosphonate (CAS RN42595-45-9)38249100
2Dimethyl propylphosphonate29313200
3(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl) methy lmethy l methy l phosphonate29313600
4Bis[(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl ] methy l phosphonate29313700
52,4,6-Tripropyl-1,3,5,2,4,6-trioxatriphosphinane 2,4,6-trioxide29313500
6Dimethyl methylphosphonate29313100
7Diethyl ethylphosphonate29313300
8Methylphosphonic acid with ( aminoiminomethyl) urea ( 1: 1)29313800
9Sodium 3-(trihydroxysilyl) propyl methylphosphonate29313400
102,2-Diphenyl-2-hydroxyacetic acid29181700
112-(N,N-Diisopropylamino) hydrochloride29211400
122-(N,N-Dimethylamino) ethylchloride hydrochloride29211200
132-(N,N-Diethylamino) ethylchloride hydrochloride29211300
142-(N,N-Diisopropylamino) ethanol29221800
152-(N,N-Diethylamino) ethanethiol29306000
16Bis (2-hydroxyethyl) sulfide29307000
172-(N,N-Dimethylamino) ethanethiol29309092
18Product from the reaction of Methylphosphonic acid and l,3,5-Triazine-2,4,6- triamineAs applicable
20R-(- )-3-Quinuclidinol29333930
213,9-Dimethyl-2,4,8,10-tetraoxa-3,9-diphosphaspiro [5.5] undecane 3,9- dioxide29313900
22Propylphosphonic dichloride29313900
23Methylphosphonic dichloride29313900
24Diphenyl methylphosphonate29313900
25O-(3-chloropropyl)O-[4-nitro-3-(trifluoromethyl)phenyl] methylphosphonothionate29313900
26Methylphosphonic acid29313900
27Product from the reaction of methylphosphonic acid and 1,2-ethanediamineAs applicable
28Phosphonic acid, methyl-, polyglycol ester (Exolit OP 560 TP)38249900
29Phosphonic acid, methyl-, polyglycol ester (Exolit OP 560)38249900
30Bis (polyoxyethylene) methylphosphonate39072090
31Poly(1,3-phenylene methyl phosphonate)39119090
32Dimethylmethylphosphonate, polymer with oxirane and phosphorus oxide38249900
33.Carbonyl dichloride28121100
34.Cyanogen chloride28531000
35.Hydrogen cyanide28111200
37.Phosphorus oxychloride28121200
38.Phosphorus trichloride28121300
39.Phosphorus pentachloride28121400
40.Trimethyl phosphite29202300
41.Triethyl phosphite29202400
42.Dimethyl phosphite29202100
43.Diethyl phosphite29202200
44.Sulfur monochloride28121500
45.Sulfur dichloride28121600
46.Thionyl chloride28121700

HSN/ SAC Code Requirement for GSTR-1:

  1. Column “Total Value” to be removed from Table-12 (HSN wise summary of outward supplies) of Form GSTR-1.
  2. A new entry “Rate of Tax” to be inserted in place of Column “Total Value”. Thus, HSN code to be reported Rate Wise.
  3. Changes in reporting of number of digit of HSN/ SAC code as per Notification No. 78/2020- Central Tax and 79/2020- Central Tax Dated 15/10/2020.

Following images twitted by GSTN is showing all these changes which are attached below:

New E-Invoice Requirements from 1st April, 2021:

Vide Notification No. 05/2021- Central Tax Dated 08/03/2021, the CBIC has reduced turnover eligibility for E-invoicing from Rs. 100 Crore to Rs. 50 Crore. The new provisions will be in force from 1st April, 2021.

The copy of Notification is attached as under:

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