Are you registered under GST?

Are you registered under GST?

Remember these things before 1st April, 2021

In this article, we are discussing about the major provisions of Goods and Services Tax (GST) which are to be kept in mind before we enter into the new financial year 2021-22.

Mandatory e-invoicing – Is it applicable to you?

The Government is making it mandatory for entities registered under GST to follow e-invoicing system on a phased manner.

  • E-invoicing was mandatory w.e.f 1st October, 2020, for registered tax-payers / entities with turnover exceeding Rs. 500 Crores.
  • With effect from 1st January, 2021, e-invoicing was made mandatory for registered tax payers / entities with turnover exceeding Rs. 100 Crores.
  • Further, with effect from 1st April, 2021, e-invoicing is mandatory for all registered tax payers / entities with turnover exceeding Rs. 50 Crores.

Thus, if your entity has annual turnover exceeding Rs. 50 Crores, you need to adopt e-invoicing w.e,f 1st April, 2021.

Dynamic QR Code for B2C supply transactions.

Any registered tax person with annual turnover exceeding Rs. 500 Crores in any financial year from FY 2017-18, shall issue ‘Dynamic QR Code invoice’ for B2C supply transactions. Though this requirement was earlier made effective w.e.f 1st December, 2020, later on, the applicability of this provision was postponed to 1st April, 2021.

Renewal of Letter of Undertaking (LUT)

Any registered person making ‘export of goods or services’ without payment of taxes should opt Letter of Undertaking for F.Y 2021-22. Those who have had LUT in FY 2020-21 and wish to continue the same facility in FY 2021-22, should apply for renewal of LUT. It can be applied in March 2021 itself.

Quoting 6 Digit HSN Code

With effective from 01-04-2021, quoting of 6 Digit HSN Code is mandatory for all the tax payers having aggregate turnover in FY 2020-21 exceeding Rs. 5 Crores. Similarly, those tax payers with aggregate turnover in FY 2020-21 less than Rs. 5 Crores shall quote 4 Digit HSN Code.

The following table summarises the requirement –

Turnover in FY 2020-21Type of supplyHSN Requirement
Exceeding Rs. 5 CrB2B6 Digit HSN
Exceeding Rs. 5 CrB2C6 Digit HSN
Not exceeding Rs. 5 CrB2B4 Digit HSN
Not exceeding Rs. 5 CrB2COptional

Opting for Quarterly Return & Monthly Payment (QRMP) Scheme

Registered persons who has not opted for QRMP in the last quarter of FY 2020-21 and wish to opt for QRMP for the 1st quarter of FY 2021-22 shall opt for the same between 01st February 2021 to 30th April 2021. Similarly, registered persons who had opted for QRMP last quarter and wish to opt-out of QRMP scheme, may opt out during the period 1st February to 30th April, 2021.

The above changes are very important changes and the ‘registered persons’ shall take necessary steps to comply with the same.

For queries & clarifications, contact [email protected]


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