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GST: Upcoming Major Changes under GST Regime may take place in 2021
GST Changes w.e.f. 01st January 2021
1. Pre-filled GST returns to become the norm from 1st January 2020:
- GSTR - 3B:
- Sales Crossing Rs. Five Crore in Last Financial Year needs to file GSTR-3B on a regular monthly basis
- Receipt up to Rs. Five Crore in the last Financial Year has the option to file GSTR-3B on a QUARTERLY basis
- Select the option to file quarterly GSTR-3B between 5th Dec’20 to 31st Jan’21
Taxpayers filing quarterly GSTR-3B needs to deposit 35% of GST paid through cash ledger in the previous quarter in each 1st & 2nd month of the quarter through form GST PMT-06 by 25th of next month.
- GSTR-1:
Taxpayers filing GSTR-1 quarterly basis will be allowed to upload B2B invoices on monthly basis through IFF by the 13th of next month
Due date of GSTR-1
|
Monthly Return |
Quarterly Return |
|
11th of next month |
13th of next month ending the quarter |
2. Goods and services E-invoicing Compulsory from 1, January 2021 if Sales Cross INR 100 Crore
The changes will bring a large number of medium enterprises under the ambit of e-invoicing. It is expected that it will be made available to all taxpayers for B2B transactions from 1st April 2021.
The E-invoicing mechanism for B2 B transactions was implemented on a Compulsory basis for companies with sales exceeds INR 500 Cr. from 1 October 2020.
3. From 1 October, businesses with ₹10 crores in sales have to collect income tax at 0.1% (0.075% up to 31 March 2021) if the Turnover/ consideration received exceeds INR 50,00,000/- in an FY —a step aimed at tracking transactions in the economy.
4. GST Refunds: W.e.f from 1 January 2020, GST refunds will be sent only to taxpayer bank accounts which are validated by Permanent account number & Aadhaar. To apply refund filling, businesses can use an OTP password generated using Aadhaar. This is expected to bring in more clarity into who is claiming a GST Tax refund.
5. Compensation cess: An extension to the postponement of the levy of the compensation cess beyond the transition period of five years, i.e., beyond June 2022
6. ITC information and GST liability: As of 1 April 2021, to ensure auto-population of ITC information and GST liability on Form GSTR-3B, it would be mandatory to file Form GSTR-1 before Form GSTR-3B;
7. GST Exemptions: To encourage the Indian domestic market towards the installation or launching of satellites particularly by New start-ups, the satellite launch services supplied by Antrix Corporation Ltd, ISRO, & NSIL will be exempted from GST tax.
8. HSN for goods and SAC for services:
Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1w.e.f. 01.04.2021 as under:
- HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above INR Five crores;
- HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover up to INR Five crores;
- Government to have the power to notify 8 digit HSN on the notified class of supplies by all taxpayers
Note: A further postponement of the introduction of the new GST return filing system, originally proposed to be introduced on a trial basis as from 1 April 2019 and on a mandatory basis as from 1 July 2019. GSTR-3B & Forms GSTR-1 will continue to be used until 31.03.2021.
The blog is posted by CS Lalit Rajput expert of RAJPUT JAIN & ASSOCIATES
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event, the author shall be liable for any direct, indirect, special, or incidental damage resulting from or arising out of or in connection with the use of this information.
