For GST taxpayers with a turnover of more than Rs 5 crore, the HSN Code/Service Accounting Code will be required on invoices beginning April 1, 2021, as per the revised requirement.
With effect from April 1, 2021, a GST taxpayer with a turnover of more than Rs 5 crore in the previous financial year must have a 6-digit HSN Code (Harmonised System of Nomenclature Code) or, as the case may be, a SAC (Service Accounting Code) on invoices provided for suppliers of taxable products and services. On B2B invoices, a taxpayer with a turnover of up to Rs 5 crore in the previous financial year is expected to have a four-digit HSN code. Previously, the requirements were 4 and 2 digits, respectively.
As a result, beginning April 1, 2021, GST taxpayers will be required to include HSN/SAC in their invoices, as per the revised requirement.
HSN codes for products with six digits are commonly used. As a consequence, HSN codes used in Customs and GST are the same. As a result, the codes specified in the Customs tariff are also used for GST purposes (as has been specifically mentioned in the GST rate schedule). The HS code is specified in the Customs Tariff as heading (4 digits HS), sub-heading (6 digits HS), and tariff products (8 digits). The CBIC website has these documents available.
The Emergency Credit Line Guarantee Scheme (ECLGS) 1.0 and 2.0 have been extended until December 31, 2021.
In response to the ongoing negative effect of the COVID-19 pandemic on some service sectors, the government has expanded the reach of the Emergency Credit Line Guarantee Scheme (ECLGS) by introducing ECLGS 3.0, which now includes business enterprises.
ECLGS 3.0 will allow for the extension of up to 40% of total credit outstanding across all lending institutions as of February 29, 2020. Loans issued under ECLGS 3.0 would have a tenure of six years, plus a two-year moratorium duration.
ECLGS 1.0, ECLGS 2.0, and ECLGS 3.0 have also had their validity extended until June 30, 2021, or until assurances in the amount of Rs. 3 lakh crore are released. The deadline for disbursement under the scheme has been extended until September 30, 2021.
The scheme’s modifications, which provide an opportunity for MLIs to provide additional support to qualified beneficiaries, would go a long way toward contributing to economic revival, job security, and a favourable climate for job creation. National Credit Guarantee Trustee Company Ltd will issue updated operating guidelines in this regard.