{"id":257,"date":"2021-05-01T08:11:58","date_gmt":"2021-05-01T08:11:58","guid":{"rendered":"https:\/\/consultcaonline.com\/?p=257"},"modified":"2021-06-09T06:59:28","modified_gmt":"2021-06-09T06:59:28","slug":"amendments-in-gst-on-e-invoicing-hsn-code","status":"publish","type":"post","link":"https:\/\/consultcaonline.com\/index.php\/2021\/05\/01\/amendments-in-gst-on-e-invoicing-hsn-code\/","title":{"rendered":"Amendments in GST on E- Invoicing & HSN Code"},"content":{"rendered":"\n

E- Invoicing:<\/em><\/strong><\/h2>\n\n\n\n

\u2018E-Invoicing\u2019 is a system in which B2B (Business to Business) invoices are authenticated electronically on the GST portal. Under the electronic invoicing system, a unique identification number will be issued against each and every invoice by the\u00a0Invoice Registration Portal (IRP)\u00a0to be managed by the GST Network (GSTN).\u00a0<\/p>\n\n\n\n

Invoice Registration Portal (IRP) is launched for the purpose of real time data sharing GST portal and E invoicing portal that eliminate the manual data entry in GSTR-1 as well as Part 1 of E way bills.\u00a0 However, GST department issued an update on 1st February 2021 that while pulling the e-invoice data into the GST System, details of some invoices were not getting auto- populated into the GSTR-1. Complete data will take some more time to update. Hence taxpayers are advised not to wait for the complete auto-population of data, and instead proceed with preparing and filing the GSTR-1, by the due date, based on the data as per their records.<\/p>\n\n\n\n

Applicability:<\/em><\/strong><\/p>\n\n\n\n

E- Invoicing is applies from 1st<\/sup> Oct-20 to all taxpayers whose aggregate turnover has exceeded Rs.500 crore limit in any of the preceding financial years from 2017-18 to 2019-20 (Notification No.61\/2020). Further, from 1st January 2021, the above limit is changed to 100 crore (Notification No.88\/2020). Further, from 1st April 2021, the above limit is changed to 50 crore (Notification No. 5\/2021).<\/p>\n\n\n\n

Not Applicable to:<\/em><\/strong><\/p>\n\n\n\n

E-Invoicing is not applicable to Specified Businesses such as SEZ Unit, Insurer, Banking Company, Financial Institution, NBFC, GTA Service, Passenger Transport Service, and Admission to Multiplex for Films.<\/p>\n\n\n\n

Eligibility for ITC:<\/em><\/strong><\/p>\n\n\n\n

If the Supplier of Goods and Services are required to issue E-Invoices and not comply with this requirement then no ITC is available to the Purchaser.  For this condition, it\u2019s very difficult for the buyer to ascertain whether E- invoicing is applies to supplier or not. It\u2019s better to take an Undertaking from the supplier.<\/p>\n\n\n\n

Generation :<\/em><\/strong><\/p>\n\n\n\n

All the ERP software provides API backlinking<\/strong><\/em> of the ERP with the E-invoicing portal on real time basis to authenticate the invoice by a single click but under manual process, Bulk E- invoicing offline tool should be used and the JSON file uploaded in the IRP portal.<\/p>\n\n\n\n

HSN Code Applicability:<\/em><\/strong><\/h2>\n\n\n\n

CBIC (The Central Board of Indirect Taxes) issued\u00a0Notification No. 12\/2017-Central Tax dated 28th<\/sup> June, 2017,\u00a0<\/em>to show specified digits of Harmonised System of Nomenclature (HSN)\/ Service Accounting Code (SAC) Code on the tax invoices for supply of goods or services. Further, the above notification was amended vide\u00a0Notification No. 78\/2020 \u2013 Central Tax, dated 15th<\/sup> October, 2020\u00a0<\/em>to mandate 4\/6- digit HSN\/SAC Code on supply of goods or services on the tax invoices\u00a0w.e.f. April 1, 2021:<\/p>\n\n\n\n

Sr. No<\/em><\/strong><\/td>Aggregate T\/O in Preceding F.Y<\/em><\/strong><\/em><\/strong><\/td>No Of Digits of HSN Code upto 31st<\/sup> Mar-21<\/em><\/strong><\/em><\/strong><\/td>No Of Digits of HSN Code from 1st<\/sup> April-21<\/em><\/strong><\/em><\/strong><\/td><\/tr>
1<\/em><\/strong><\/td>Upto 1.5 Crores<\/em><\/strong><\/td>0<\/em><\/strong><\/td>4<\/em><\/strong><\/td><\/tr>
2<\/em><\/strong><\/td>1.5 Crores to 5 Crores<\/em><\/strong><\/td>2<\/em><\/strong><\/td>4<\/em><\/strong><\/td><\/tr>
3<\/em><\/strong><\/td>More than 5 Crores<\/em><\/strong><\/td>4<\/em><\/strong><\/td>6<\/em><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Thereafter,\u00a0 Notification No. 90\/2020 \u2013 Central Tax, dated December 01, 2020<\/em>\u00a0 issued to provide for the class of supply of \u2018Chemicals\u2019 whose HSN Code are required to be mentioned at 8-digit on the tax invoices.<\/p>\n\n\n\n

Along with above notification 8 digits of HSN code is mandatory in case of export and imports under the GST.<\/p>\n\n\n\n

Penalty:<\/p>\n\n\n\n

Under section 125 \u2013 General Penalty of the\u00a0Central Goods and Services Tax Act, 2017 <\/strong>n case of non-mentioning or mentioning wrong HSN code under the Goods and Service Tax Act, the maximum penalty of\u00a0INR 50,000\/-<\/strong>\u00a0( INR 25000\/- for CGST and SGST each) shall be levied.<\/p>\n\n\n\n

For the correct HSN code do visit on https:\/\/cbic-gst.gov.in\/gst-goods-services-rates.html.<\/p>\n","protected":false},"excerpt":{"rendered":"

E- Invoicing: \u2018E-Invoicing\u2019 is a system in which B2B (Business to Business) invoices are authenticated electronically on the GST portal. Under the electronic invoicing system, a unique identification number will be issued against each and every invoice by the\u00a0Invoice Registration Portal (IRP)\u00a0to be managed by the GST Network (GSTN).\u00a0 Invoice Registration Portal (IRP) is launched […]<\/p>\n","protected":false},"author":2,"featured_media":258,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst"],"_links":{"self":[{"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/posts\/257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/comments?post=257"}],"version-history":[{"count":3,"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/posts\/257\/revisions"}],"predecessor-version":[{"id":261,"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/posts\/257\/revisions\/261"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/media\/258"}],"wp:attachment":[{"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/media?parent=257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/categories?post=257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/consultcaonline.com\/index.php\/wp-json\/wp\/v2\/tags?post=257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}