Latest Updates Under GST

Announcements By - CA Mounika

Summary:

1. HSN Code
2. CBIC clarification on Input Tax Credit
3. Option to withdraw Nil Refund application has been provided on GST portal.

HSN CODE

HSN Code is mandatory for Goods & Services on Tax Invoices w.e.f. 1^st April, 2021 on updated Turnover basis as per Notification No. 78/2020- Central Tax dated 15.10.2020

HSN code(Harmonized System of Nomenclature) is Two, Four or Eight-digit code which is used to determine the classification of goods under different sections, chapters, headings, and subheadings.

SAC code means Services Accounting Code which is used to determine the classification of Services.

HSN & SAC code are used to determine the rate of taxes of such goods & services respectively.

Notification No. 78/2020dated 15.10.2020 issued with some changes in the Notification No 12/2017- Central tax dated 28.06.2017 with effect from 1st April, 2021.

As per Notification No 12/2017: (Current Applicability till 31^st March, 2021)

Two, Four or Eight-digit HSN code for their goods was depends on the Aggregate Turnover limit:

• Whose Aggregate Turnover of less than Rs 1.5 crore will not be required to mention HSN code for their goods.
• Whose Aggregate Turnover between Rs 1.5 crore and Rs 5 crore shall be required to mention 2-digit HSN code on the Tax invoice for their goods.
• Whose Aggregate Turnover is more than Rs 5 crore shall be required to use four-digit HSN code on the Tax invoice for their goods.
• In the case of imports/exports, HSN codes of eight digits shall be compulsory.

As per Notification No 78/2020: (Applicable from 1^stApril, 2021)

• Whose Aggregate Turnover is up to Rs 5 crore in the preceding Financial Year shall be required to mention HSN Code of 4 digits is mandatory for all the B2B tax invoices and optional for B2C tax invoices on the supplies of Goods & Services.
• Whose Aggregate Turnover is more than Rs 5 crore in the preceding Financial Year shall be required to mention HSN Code of 6 digits is mandatory for all the tax invoices (B2B &B2C) on the supplies of Goods & Services.

A supplier or service provider must provide HSN/SAC code in there GSTR 1 if the Turnover falls under the above category.

CBIC clarification on Input Tax Credit

GSTR 2A:This report is generating based on the date of invoice which is uploaded in GSTR 1 by the supplier of goods & services.

GSTR 2B:This report is generating based on the date of filing of such invoice which is uploaded in GSTR 1 by the supplier of goods & services.

Input Tax Credit to be availed based on details available in FORM GSTR-2B, which is a static ITC statement generated for each month – clarified by CBIC Via Twitter Official handle as on 16^th March,2021

Option to withdraw Nil Refund application has been provided on GST portal

GST Portal has been given an option to withdraw Nil Refund application which has been already filed.

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