Here is the complete details of the Important GST and Customs Compliances should be done before New Financial Year 2021-22.
The facility of export under Letter of Undertaking (LUT) has been extended to all registered persons who intend to supply goods or services for export without payment of integrated tax except those who have been prosecuted for any offence under the CGST Act or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws and the amount of tax evaded in such cases exceeds two hundred and fifty lakh rupees.
The new LUT for FY 2021-2022 should be available before April 1, 2021 for doing exports on or after April 1, 2021.
2. Invoice/ Documents series declaration w.e.f. 1st April
The Central Board of Indirect Taxes and Customs (CBIC) notified that e-invoicing will be mandatory for business to business (B2B) transactions for taxpayers having turnover of over Rs 50 crore from April 1, 2021. At present, issuing electronic invoices is mandatory for businesses with turnover of Rs 100 crore and more, which has been put into effect from January 1, 2021, while for companies having turnover of Rs 500 crore plus was made effective from October 1, 2020. E-invoicing replaces the physical invoice and will soon replace the existing e-way bill system, and taxpayers will not have to generate separate e-way bills.
The government expects e-invoicing to have also other major advantages, such as improving the payment cycle for industry and giving a boost to invoice-based lending to MSMEs. The Entities which are exempted for e-invoices are Special Economic Zone (SEZ) Units, insurer or a banking company or a financial institution, including a non-banking financial company, goods transport agency supplying services in relation to transportation of goods by road in a goods carriage, Suppliers of passenger transportation service € Suppliers of services by way of admission to the exhibition of cinematograph films in multiplex screens.
3. FORM GST CMP-02 application, on or before 31st March, 2021
When a dealer wants to opt for a Composition Scheme under GST, they have to intimate the government about it. This can be done by filing Form GST CMP-01 or Form GST CMP-02.
The eligible enrolled assessee who wants to opt-in for composition policy for the Financial year 2021-22, is needed to furnish the FORM GST CMP-02 application, on or before 31st March 2021, post login on GST portal.
4. Update IEC Yearly or face Deactivation
The IEC related provisions in Chapter-1 and Chapter-2 of Foreign Trade Policy, 2015-2020 are amended/deleted and new provisions inserted. It is provided that An IEC holder has to ensure that details in its IEC is updated electronically every year, during the April-June period. In cases where there are no changes in IEC details the same also needs to be confirmed online.
An IEC shall be deactivated, if it is not updated within the prescribed time. IEC so de-activated may be activated, on its successful updation. This would however be without prejudice to any other action taken for violation of any other provisions of the FTP.
Application process for IEC and updation in IEC is completely online and IEC can be generated by the applicant as per the procedure detailed in the Handbook of Procedure.
5. Yearly Renewal RCMC
The Registration Cum Membership Certificate (RCMC) is a certificate that authenticates an exporter who deals with products registered with an agency or authority of the government. Under the Foreign Trade Policy of India, exporters are required to register with EPC citing their main line of business.
6. Imports customs IGST exemption yearly notification- for AA/EPCG/ EOU
Imports customs IGST exemption yearly notification for AA/EPCG/EOU, which is expiring on April 31, 2021 is yet to be renewed.
Offering some relief to exporters struggling to cope with the effects of the lockdown, the Centre has decided to extend the IGST (Integrated Goods and Service Tax) and compensation cess exemptions for goods procurement under two popular export promotion schemes by a year, till March 31, 2021.