GST News and Updates (March 2021)


Due dates for filing of Form GSTR-3B from the Tax Period of January, 2021


Sl.No. Class of registered persons who have Opted for Having principal place of business in the State/ UT of Due date of filing of Form GSTR- 3B, from January, 2021, onwards
1 Monthly filing of Form GSTR-3B All States and UTs 20th of the following month
2 Quarterly filing of Form GSTR-3B States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana and Andhra Pradesh, the Union territories of Daman and Diu, Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep 22nd of the month following the quarter
States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi 24th of the month following the quarter


Bringing petrol and diesel under the Goods and Services Tax regime


The government said it is not possible to bring petrol and diesel under the ambit of GST before 8-10 days as the states would lose a large amount of revenue. The states and centre earn upto 5 lakh crores from the tax revenue on petrol and diesel.

Presently 60% tax is collected on petroleum products but the highest tax slab present under the GST regime is 28%. This would result in a shortfall of 2.5 lakh crore in revenue for both the states and the centre. 

If petrol or diesel price is Rs 100 (per litre) then the tax component is Rs 60 which includes Rs 35 for Centre and Rs 25 for respective states. Besides out of the Rs 35 tax per litre, 42% goes to states


E-invoicing: Mandatory for businesses having turnover above 50 Cr from April 1, 2021

  In the third phase of e-invoicing rollout, the government has made e-invoicing mandatory for entities whose turnover is above 50 Cr from 1st April 2021. E-invoicing would be applicable for business to business transactions. E-invoicing was rolled out for entities with 500 crore and more turnover from October 1 last year and later extended to entities with 100 crore and above from January 1 this year. The government had earlier planned to extend e-invoicing to all entities from April 1, 2021, but has refrained, taking care of interest of small entities.  Notification no. 05/2021-Central Tax dated 08.03.2021 brought it into effect.

E-invoicing is aimed at bringing in more transparency in sales reporting, minimizing errors and mismatches, automating data entry work, and improving compliance. It will help prevent tax evasion once it is made mandatory for small and medium firms in phases.


HSN Codes mandatory from 1 April 2021


The 1st Proviso to Rule 46 of CGST Rules 2017 has been amended, vide Notification No.79/2020 Central Tax dated 15-10-2020, for declaration of HSN code in invoice.

As per the amendment, it is mandatory to report minimum 4 digit or 6 digit of HSN Code in Table-12 of GSTR 1 on the basis of aggregate turnover on PAN in the previous financial year.


Turnover upto 5 Crore Turnover above 5 Crore
Minimum 4 digit reporting of HSN Code Minimum 6 digit reporting of HSN Code
Mandatory reporting of all B2B supplies and exports (including supplies made to SEZ units and developers and Deemed Exports) Mandatory reporting of all B2B supplies and exports (including supplies made to SEZ units and developers and Deemed Exports)
Optional reporting of HSN on B2C supplies (minimum 4 digit)


GST revenue collection in February 2021


The gross GST revenue collected in the month of February 2021 is ₹ 1,13,143 crore of which CGST is ₹ 21,092 crore, SGST is ₹ 27,273 crore, IGST is ₹ 55,253 crore (including ₹ 24,382 crore collected on import of goods) and Cess is ₹ 9,525 crore (including ₹ 660 crore collected on import of goods).

In line with the trend of recovery in the GST revenues over past five months, the revenues for the month of February 2021 are 7% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 15% higher and the revenues from domestic transactions (including import of services) are 5% higher than the revenues from these sources during the same month last year.

The GST revenues crossed ₹ 1 lakh fifth time in a row and crossed ₹ 1.1 lakh crore third time in a row post pandemic. This is a clear indication of the economic recovery and the impact of various measures taken by tax administration to improve compliance.

Choosing Core Company on the GST Portal


Taxpayers are required to select their business activity only once, as – Manufacturer, wholesaler/Distributor/Retailer, service providers & others post login based on highest turnover amongst them. It can be changed later.


GSTIN not Mandatory for MSME Udyam Registration, notifies Central Govt


The Ministry of Micro, Small, and Medium Enterprises (MSME) notified that GSTIN is not Mandatory for MSME Udyam Registration. 

The Central Government amended in the notification of Government of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated the 26th June, 2020.

The government had earlier made PAN and GSTIN  mandatory wef 1st April 2021 for MSME Udyam Registration. The condition has now been relaxed and exemption from the requirement of having GSTIN shall be as per the provisions of the Central Goods and Services Tax Act, 2017 has been provided.