CBIC has issued notification implementing various suggestions by GST council in the 42nd GST council meeting.
Vide notification 77/2020 CBIC has made amendment to notification 47/2019 and thus making Annual return optional for tax payers with turnover below 2 crore for FY 2019-20 as well.
However, do remember that even though annual return has been made optional there was a proviso in that notification which read as under: “Provided that the said return shall be deemed to be furnished on the due date if it has not been furnished before the due date” and there were mixed opinions of experts on the above proviso.
Later vide notification 124/43/2019 CBIC has clarified that annual return shall be deemed to be furnished on the due date if it has not been furnished before the due date for the financial year 2017-18 and 2018-19, in respect of those registered persons.
Thus, from the above clarification it is clear that if some people think they had done some mistake in their GST returns for F.Y. 2019-20 one should file annual return.
The above notification deals with mentioning HSN code in tax invoice as per rule 46 which is as under and effective from 01.04.2021:
1. For turnover upto Rs. 5 crore: 4 digit HSN code.
2. For turnover above Rs. 5 crore: 6 digit HSN code.
Further, for registered person having turnover upto Rs. 5 crore in the previous financial year are not required to mention HSN codes as above if the supply is being made to unregistered person i.e. B2C sales.
To read full notification CLICK HERE.