GST Compliances in India- Annual Checklist and New Tasks for FY22

 

• From April 1, 2021, businesses with turnover above INR 500 million must issue e-invoices.
• Starting April 1, 2021, all businesses with turnover above INR 5 billion need to print QR code on B2C supply invoices – a relaxed compliance period is available till June 30, 2021 after which penalty will be levied in case of non-implementation.
• From April 1, 2021, new HSN codes are applicable.

Below is a list of tasks that must have been completed before the financial year closing March 31, 2021 as well as tasks to pay attention to during FY 2021-22.

Compliance tasks

• Invoicing: While filing GSTR 1, a unique series of invoices should be raised starting April 1, 2021. It is important to note that the GSTN portal should not catch duplicate or repetitive invoice serial number during the same financial year.
• E-invoicing: The government has mandated e-invoicing for businesses with a turnover above INR 5 billion with effect from October 1, 2020. For businesses with turnover above INR 1 billion, such e-invoicing was mandated with effect from January 1, 2021. From April 1, 2021, businesses with turnover above INR 500 million (in any financial year from FY 2017-18 onwards) are mandated to issue e-invoices.
• ITC not available without e-invoicing: Without e-invoicing, purchaser will not be able to claim input tax credit (ITC).
• QR coding: Starting April 1, 2021, all businesses with turnover above INR 5 billion need to print QR code on B2C supply invoices, failing which, they shall be liable to pay penalty. However, the government has waived off the penalty for non-implementation till June 30, 2021.
• HSN code requirements: From April 1, 2021, new HSN codes will be applicable, and it is imperative for businesses to adopt the new accounting software for HSN implementation. The new HSN rules are as follows:
  • Turnover up to INR 15 million – 4 digits
  • Turnover from INR 15 million to INR 50 million – 4 digits
  • Turnover above INR 50 million – 6 digits
• Aggregate turnover: The aggregate turnover is important for making the following decisions:
  • Whether to file GSTR 1 in FY 2021-22 on quarterly QRMP scheme or on monthly basis
  • Whether to mention HSN codes or how many digits to be mentioned
  • Whether to opt for composition scheme depending on different turnover thresholds
• Debit or credit notes: If there are discrepancies between sales and purchase returns, debit, or credit notes must be raised for the purpose of departmental audit trial.
• Reverse charge mechanism: Reverse charge self-invoices need to be generated for reverse charge paid and input taken on supplies received from unregistered suppliers. 
• Update the GST Registration Certificate system: To ensure that the data on the system matches the actual scenario, all the amendments, including products, address etc., need to be updated on the GST RC system.

More details at - India Briefing