TaxTMI 
TaxTMI 
TaxTMI 
S.No. | Title of the Change | Summary of the Change | Relevant Statutory Provision |
1 | E- Invoicing | It becomes applicable for Registered person having aggregate turnover over INR 100 crs in any of the financial year starting with FY 2017-18. Starting 1st January, 2021, all Tax Invoices, Credit Notes and Debit Notes will be required to be registered with Invoice Registration portal (IRP) and IRN Number along with QR code shall be mentioned on each of the above documents. | |
2 | Quarterly Return Monthly Payment Scheme | Registered person whose aggregate turnover is upto INR 1.5 crs and has opted for Quarterly filing of GSTR-1 and Registered person whose aggregate turnover more than INR 1.5 crore and up to INR 5 crore in the preceding financial year are deemed to opt for the scheme if not already opted out. The Scheme required filing of Quarterly GSTR-1 & GSTR-3B with option of monthly filing of details of Outward supplies upto INR 50 lacs through Invoice Furnishing facility. The payment of tax has to be undertaken on monthly basis through GST-PMT-06. | NTN 82/2020 -Central Tax, dated 10-11-2020, NTN 84/2020 -Central Tax, dated 10-11-2020, NTN 85/2020 -Central Tax, dated 10-11-2020 and Circular No. 143/13/2020-GST dated 10-11-2020 |
3 | Reduction in ITC entitlement for invoices not furnished by supplier from 10% to 5% | Rule 36(4) stands amended. Restriction of claim of ITC in respect of invoices/debit notes not furnished by the suppliers has now been reduced from 10% to 5% of the credit available in GSTR-2B. | |
4 | Restrictions on use of amount available in electronic credit ledger | Where taxable supply other than exempt supply and export, in a month exceeds INR 50 lakh. Taxpayer is not allowed to use ITC in excess of 99% of output tax liability. Specified certain exceptions provided to above restrictions. | |
5 | Validity of e-way bill narrowed by increasing distance from 100 km. to 200 km. per day | Amendment in Rule 138; E-way bill will now be valid for 1 day for every 200 km of travel, as against 100 km earlier, in cases other than Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship. For every 200 km. or part thereof thereafter, one additional day will be allowed. |
SUMMARY OF CHANGES IN GST EFFECTIVE FROM 1ST JANUARY 2021
Chitresh Gupta
E invoicing obligation: invoices, credit and debit notes must be registered with IRP and include IRN and QR code. Amendments effective 1 January 2021 require registration of tax invoices, credit notes and debit notes on the Invoice Registration Portal with IRN and QR code; introduce a Quarterly Return Monthly Payment Scheme combining quarterly filing with monthly tax payment and an invoice furnishing facility; reduce the reconciliation allowance for input tax credit where supplier invoices are not furnished; restrict use of electronic credit ledger balances for payment of output tax in specified cases; and extend the distance basis for e-way bill validity, subject to stated exceptions. (AI Summary)