Important Action points in GST for FY 2020-21/2021-22

1. Unique Invoice Serial Number

Ensure to have a unique invoice serial number (not necessary that it should be start from 1 only) to be started from 1 April 2021. You may create multiple series as per your convenience [Rule 46(b)].

2. HSN code requirements

With effect from 1st April 2021 the requirement of mentioning HSN Code is as follows:

1. Aggregate turnover up to 5 Cr - Min 4 digits on all B2B supplies. (Optional for B2C supplies)

2. Aggregate turnover above Rs 5 Cr -  6 digits

3. For Exporters and few notified goods -  8 digits

3. E- Invoicing

Registered Person having Aggregate turnover in any of the preceding FY above Rs.50 crores, are required to generate e-invoicing.  As per Rule 48(5), if e-Invoice is not issued then it would be treated that no invoice has been issued. Also recipient will not be entitled to take ITC. 

4. QR Code for B2C

QR code on B2C supplies by Registered Person having aggregate turnover above 500 crores  is required to be printed from 1st April 2021. If the same is not complied with from 1st April 2021, they will be liable for penalty on all B2C supply wef 1st December 2020.

5. Opt in for Composition Scheme

 The eligible taxpayers, who wish to avail the composition scheme from FY 2021-22 may opt in for composition by filing form GST CMP 02 through the common portal latest by 31st March, 2021.

6. Letter of Undertaking in RFD-11

The LUT in RFD-11 as per Rule 96A, need to be furnished for FY 2021-22 on or before zero rated supply so that the supply don’t get stuck at the last moment.

7. GST Refund

All the categories of GST Refund which are having the relevant date in March 2019 RFD-01, to be filled by 31.03.2021.  

8. QRMP Scheme 

To opt-in or opt- out of the QRMP Scheme for the first quarter of FY 2021-22 i.e., from April 1, 2021 to June 30, 2021 registered person can do the same by 30th April, 2021.

9. Year End Reconciliations 

A) GSTR 1 with GSTR 3B - in case there is 3B turnover is less, identify it and pay tax with interest @18% and vice versa if GSTR 3B turnover is more, then amend the Tax Invoice / Bill of Supply / Debit Note / Credit Note and if extra taxes paid, the same to be adjusted in subsequent GST Returns. 

B) Reconciliation of GSTR 1/3B Sales with Financial Statements:

C) Reconciliation of E Way Bills with GSTR 1 and further with GSTR 3B

D) GSTR 3B ITC with purchases register 

In case, ITC taken in 3B is more than the actual purchase invoices, the same need to be reversed and vice versa if ITC is less than the eligible purchase invoices, the same need to be claimed immediately but not later than September 2021.

E) GSTR 3B ITC with GSTR 2A/2B 

Registered Person have to compare the ITC taken in GSTR 3B with GSTR 2A / GSTR 2B (as the case may be) for F.Y. 2020-21 and if ITC taken in GSTR 3B in excess of GSTR 2A then the same need to reversed or follow up to be taken with supplier for uploading the invoices / Debit Note in GSTR 1 by Sep 2021.

10. Reversal of ITC as per Rule 42/43

In case there is an exempt supply as well as taxable supply (including Zero Rated Supply) then portion of common ITC need to be reversed as per Rule 42/43. This exercise to be done on every month and after then end of FY till Sep 2021. 

 

11. GST Payment under Reverse Charge 

Ensure to check the books of account and also GSTR 2A and check the applicability of Reverse Charge Mechanism. If it is applicable and not yet paid then the same need to be pay now along with Interest (Considering Time of Supply for Reverse Charge) and take the ITC in the GSTR 3B for March 2021 itself. 

12. ITC-04 for Job Work Movements

In case there is movement of goods to Job worker then please ensure that ITC-04 has been filled as per the due date. If not then ensure to comply the same by March 2021. 

13. Document Issued

Registered Person need to check that all document as required by Sec 31 has been issued (Like Delivery Challan, Revised Invoice, Payment Voucher, Self Invoice and Receipt Voucher). Also if issued then also check whether numbering has been reported in GSTR 1, if not then report all such missing documents in GSTR 1 for March 2021.