Important Changes with effect from 01-04-2021 in GST


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Important Changes with effect from 01-04-2021 in GST

1. E-Invoicing

A. A notified class of registered persons must prepare invoice by uploading specified particulars of the invoice on the Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN) The invoice copy containing inter alia, the IRN with QR Code issued by the notified supplier to the buyer is commonly referred to as ‘e-invoice’ in GST.

Notified class of registered persons –

Turnover Applicable with effect from Notification
>=500CR 01-10-2020 Notification No. 61/2020 – Central Tax
>=100CR 01-01-2021 Notification No. 88/2020 – Central Tax
>=50CR 01-04-2021 Notification No. 05/2021 – Central Tax

B. Supplies on which E-Invoicing Applicable –

SN Nature of Supplies E-Invoice Applicability
1 Supplies to registered Person (B2B) Yes
2 Supplies to SEZ Yes
3 Export Yes
4 Deemed Export Yes
5 Debit Note/Credit Note with reference to above (1 to 4) Yes
6 Supplies to unregistered person (B2C) No
7 Debit Note/Credit Note with reference to above (6) No

C. Exemption from E-Invoicing

The Entities which are exempted for e-invoices are –

i. Special Economic Zone Units

ii. insurer or a banking company or a financial institution, including a non-banking financial company.

iii. goods transport agency supplying services in relation to transportation of goods by road in a goods carriage.

iv. Suppliers of passenger transportation service € Suppliers of services by way of admission to the exhibition of cinematograph films in multiplex screens.

D. Cancellation of E-Invoice

The cancellation request can be triggered through ‘Cancel API’ within 24 hours from the time of the reporting invoice to IRP. However, if the connected e-way bill is active or verified by the officer during transit, the cancellation of IRN will not be permitted.

E. Amendment of Invoice

If there is a mistake, incorrect or wrong entry in the e-invoice, then it cannot be edited or corrected. The only option is to cancel that invoice/IRN and report a new document (with a new number) and generate a fresh IRN. Amendments are not possible, once IRN is generated on IRP. Any changes in the invoice details reported to IRP can be carried out on the GST portal (while filing GSTR-1). However, these changes will be flagged to the proper officer for information.

2. HSN Code

A registered person having aggregate turnover up to five crores rupees in the previous financial year and more than five crores’ rupees in the previous financial year shall mention the number of digits of HSN Code, as specified in the corresponding entry in column (3) of the below Table in a tax invoice issued by him under the said rules in respect of supplies made.

Serial Number Aggregate Turnover in the preceding Financial Year Number of Digits of Harmonised System of Nomenclature Code (HSN Code)
1. Up to rupees five crores 4
2. more than rupees five crores 6
3. In case of Export of Goods/Service 8

Provided that a registered person having aggregate turnover up to five crores rupees in the previous financial year may not mention the number of digits of HSN Code, as specified in the corresponding entry in column (3) of the said Table in a tax invoice issued by him under the said rules in respect of supplies made to unregistered persons.


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