The central government has declared the impending alterations in GSTR-1 Table-12 on GST Portal. The government has instructed that from 1st April onwards, it will become compulsary to report minimum 4 digit or 6 digits of HSN (Harmonized System of Nomenclature) Code in Table-12 of GSTR-1 and in Tax Invoice. In this article, we will talk with Changes in GSTR-1 applicable.
Changes in GSTR-1 applicable
As we know theGoods and Service tax (GSTN) is a not-for-profit, non-government company promoted together by the Central and State Governments, which will provide shared IT infrastructure and services to both central and state governments comprising tax payers and other stakeholders.
Now, the central government has declared the impending changes in GSTR-1 Table-12 on GST Portal. The government has informed that from 1st April onwards, it will become mandatory to document minimum 4 digit or 6 digits of HSN code in Table-12 of GSTR-1 and in Tax Invoice.
This modification is all set to alter the way of businesses operated in India. It is one of the hugest changes in the world of GST in the year of 2021. This fresh policy has been taken extremely by businesses after the GST Tech Tweet on Thursday (4th March). The alteration is an extension of the amendment made in Notification by Central Government.
Further Notification by GST Portel
The no. of HSN Code to be noted will be on the basis of Aggregate Turnover on PAN in the preceding fiscal year.
Also, the aggregate Turnover in the preceding Financial Year. Amount of Digits of Harmonized System of Nomenclature Code (HSN Code)
- Up to rupees five crores 4 Digits
- more than rupees five crores 6 Digits
GST Turnover up to 5 Crore
Under Aggregate Turnover up to Rs.5 Crore Minimum 4 digit reporting of HSN Code is necessary, compulsary reporting of all B2B supplies & exports.
GST Turnover More than 5 crore
Under Aggregate Turnover is more than Rs. 5 Crore Minimum 6 digit reporting of HSN Code is required and compulsory reporting of all supplies, combining exports.
Further, in Under 8 Digits of HSN Code as per the Notification No 90/20, it is mandatory to illustrate the 49 chemicals based commodities.
NOTE- All the tax invoices should consists of adequate HSN Digits, listed explanation of the products and correct tax rates for better transparency and to escape future litigations. Also, Under section 125 of GST there is a fine for any mistakes related to GSTR-1.
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