Recent Tax changes that you must know!
In order to cope with the new normal, it was certain that taxation rules and regulations were going to go through an update too.
As expected, the new financial year has brought new amendments to the GST rules. Here is a list of some of the major updates that can affect your retail business directly:
1. IRN Number on Invoice is a Must!
Businesses having turnover above Rs.50 crores are required to generate e-invoicing w.e.f. 01-04-2021.
Any invoice without an IRN number would be treated as compliance failure and would not be treated as an invoice at all
2. Mandatory 6 or 8 digit HSN / SAC code for businesses with Turnover ≥ 5 Cr !
Businesses having turnover of more than INR 5 Crs are required to mandatory maintain 6 or 8 digit HSN / SAC code w.e.f. 01-04-2021. The above HSN/SAC Code would get validated for the generation of the E-Invoice / E-way Bill as well.
Any invoice with 4 digit HSN / SAC code (as per old practice), for customers having turnover exceeding INR 5 Cr, would not be validated for generation of E-Invoice/ E-way bill and as well GST Return.
3. Not printing QR code will not be penalised for a person having turnover > INR 500 Cr!
In terms of Notification 06/2021 dated 30th March 2021, the Applicability for Dynamic Quick Response (QR) code in the invoice issued by a registered person, whose aggregate turnover in a financial year exceeds Rs. 500 Crore for B2C extended to 1st July 2021.
Effectively it means, no penalty would be levied for not printing QR code by a person having turnover > INR 500 Cr on B2C invoices during 01.12.2020 to 30.06.2021 if compiled w.e.f. 01.07.2021
It is very difficult to manually keep track of these ever changing accounting and taxation policies. An accounting software can do this for your retail business with utmost efficiency. On top of handling your retail clientele you don't have to additionally invest you men and money for account reconciliation.
A retail business is incomplete without a proper accounting software solution,
Complete it with Ginesys!