{"id":4404,"date":"2021-04-14T13:07:47","date_gmt":"2021-04-14T07:37:47","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=4404"},"modified":"2022-12-21T13:44:13","modified_gmt":"2022-12-21T08:14:13","slug":"key-gst-income-tax-changes-effective-from-1st-april-2021","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/business-banking\/key-gst-income-tax-changes-effective-from-1st-april-2021\/","title":{"rendered":"Key GST &#038; Income Tax Changes Effective from 1st April 2021"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">As businesses start the new financial year, it is imperative for them<\/span><span style=\"font-weight: 400;\"> to stay updated about the key GST &amp; income tax changes effective from 1st April 2021.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this blog, we are rounding up all the new rules that businesses need to take into account for FY 2021-22.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Key GST changes effective from 1st April 2021<br \/>\n<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Central Board of Indirect Taxes and Customs (CBIC) has mandated <\/span><a href=\"https:\/\/razorpay.com\/learn\/gst-e-invoicing-system\/\"><span style=\"font-weight: 400;\">e-invoicing<\/span><\/a><span style=\"font-weight: 400;\"> for all business to business (B2B) transactions for businesses having a turnover of over Rs 50 crore<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/razorpay.com\/learn\/hsn-sac-codes-gst\/\"><span style=\"font-weight: 400;\">HSN (Harmonized System of Nomenclature) Code<\/span><\/a> <span style=\"font-weight: 400;\">is mandatory on B2B and B2C tax invoices for businesses exceeding Rs. 5 crore turnover\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Here\u2019s a detailed breakup.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Business Turnover<\/b><\/td>\n<td><b>HSN code for B2B Transactions<\/b><\/td>\n<td><b>HSN code for B2C Transactions<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Turnover up to Rs 5 Cr<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4 \u2013 Digit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Turnover more than Rs 5 Cr<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6 \u2013 Digit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6 \u2013 Digit<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Businesses can avail credit for an <\/span><a href=\"https:\/\/razorpay.com\/learn\/input-tax-credit-under-gst\/\"><span style=\"font-weight: 400;\">input tax credit<\/span><\/a><span style=\"font-weight: 400;\"> on an invoice <\/span><b><i>only<\/i><\/b><span style=\"font-weight: 400;\"> when those invoice details are uploaded by the supplier in the statement of outward supplies<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manual GST audit and submitting reconciliation statements are no longer mandatory for businesses in FY 2021-22<\/span><\/li>\n<\/ul>\n<h2>Key changes in Income Tax Regime effective from 1st April 2021<\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: left;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If businesses fail to deposit the employee\u2019s contribution to <\/span><a href=\"https:\/\/razorpay.com\/learn\/employee-provident-fund-epf-scheme\/\"><span style=\"font-weight: 400;\">EPF (Employee ProvidentFund)<\/span><\/a> on time, <span style=\"font-weight: 400;\">they will not be able to avail the deduction<br \/>\n<\/span><br \/>\n<strong>Pro Tip:<\/strong> Invest in smart payroll software and never miss another due date for your compliance payments.<\/li>\n<li style=\"font-weight: 400; text-align: left;\" aria-level=\"1\">\n<div style=\"text-align: center;\">\n<p><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/?r=blog_cta_business_banking_gst_income_tax_changes&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener noreferrer\">Automate your EPF deductions in one click!<\/a><\/p>\n<\/div>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A new TDS section 194 Q will be effective from 01-July-2021, which requires businesses exceeding turnover of Rs. 10 Cr to pay 0.1% TDS on purchase of goods. If the supplier does not provide PAN\/Aadhar, then the rate would be 5%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The interest earned on PF (Provident Fund) will be taxable if the employees\u2019 contribution exceeds Rs 2.5 lakh<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax filing is not mandatory for seniors above 75 years of age with pension and interest income only<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Businesses are liable to pay twice the TDS rate specified in the income-tax act if they haven\u2019t filed their income tax return (ITR). This new TDS rule will be effective from 1st July 2021<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">We hope this helps you\u00a0plan your finances smoothly for FY 2021-22.<\/span><\/p>\n<p>Subscribe to our weekly newsletter to stay updated about all the recent tax changes &amp; their effect on your business.<\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/x.razorpay.com\/auth\/signup?r=blog_cta_business_banking_gst_income_tax_changes&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Join RazorpayX!<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Read on to know all the key changes in the GST &#038; Income Tax Regime effective from 1st April 2021 that businesses need to take into account for FY 2021-22.<\/p>\n","protected":false},"author":151156479,"featured_media":4405,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3437],"tags":[],"class_list":{"0":"post-4404","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/4404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156479"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=4404"}],"version-history":[{"count":4,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/4404\/revisions"}],"predecessor-version":[{"id":7206,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/4404\/revisions\/7206"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/4405"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=4404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=4404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=4404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}