The Government of India has made 5 amendments for the financial year 2022 and have also mandated the audit trails in the accounting software, applicable from 1st April 2021.

The 6 important changes are,

1. HSN code should be printed in the invoice printout

a) In the bill printout,  HSN code must contain a minimum of 4 digits in the tax invoice (B2B and B2C) if the previous financial year turnover is between 1.5crores to 5 crores. Users should add the required HSN code field in the print profile

b) In the bill printout, HSN code must contain a minimum of 6 digits in the tax invoice (B2B and B2C) if the previous financial year turnover is above 5 crores.  Users should add the required HSN code field in the print profile

Check out the link to add HSN code in bill print out

a) Signature or digital signature of the supplier or the authorized representative should be printed on the invoice. Sign on a white sheet, scan/ picture it, upload as an image in the Easy print tool and add the image field in the required place

 

b) Companies with a turnover above 50 crores in any preceding financial year from FY 2017-18  have to upload the above mentioned invoices from April 1st. The grace period is 2 days if there was any accident/ inability like internet issues.

c) GOFRUGAL ERP will automatically upload these invoices to the government portal. When the software automatically uploads the invoices, an IRN  (Invoice Reference Number) and a dynamic QR code will be generated. These details have to be printed in the invoices created for B2B transactions. Add these fields in the printout using the print easy tool. IRN number field and dynamic QR code fields will be there in the printEasy tool. Kindly place it in the appropriate positions in your print design

3. Dynamic QR code for payments : Businesses with a turnover exceeding 500 Cr in any preceding financial year from FY 2017-18 , have to place a dynamic QR code for B2C transactions

a) QR code can be placed in the invoice where the end consumer can scan and pay. Upon scanning, the amount for payment should load automatically

 

b) QR code can be placed in the billing screen itself for end consumers to scan and pay. We have integration with popular wallets in the software which will support it. Kindly reach out to GOFRUGAL support via chat support

 

4. TCS (Tax collected at source)  percentage has been changed : It was launched decades back and was introduced for sale of goods from 1st October 2020. Businesses with a turnover in the previous financial year exceeding 10 Cr are subjected to TCS. When the sale of goods to a particular party goes above 50 lakhs, 0.1% of invoice amount will be collected as TCS tax and paid from April 1st.

During Financial Year 2020-21, there was a special provision provided by the Finance Ministry on account of COVID pandemic and reduced the applicable rate to 0.075% (25% discount was provided) and from 1st April 2021, the actual TCS percentage of 0.1% will be effective. 

5. TDS (Tax deducted at source) rates have been changed : TDS has been applicable to businesses for very long period of time.

During Financial Year 2020-21, there was a special provision provided by the Finance Ministry on account of COVID pandemic and reduced the applicable TDS rate with a discount of 25%.

From 1st April 2021, actual TDS percentages will be effective.

Eg, TDS rate for rent

TDS Rate from 01.04.2020 to 13.05.2020 - 10 %

TDS Rate from 14.05.2020 to 31.03.2021 - 7.5%

TDS Rate from 01.04.2021 -  10%

6. Auditing trialing : The MCA has mandated all companies which uses accounting software for maintaining its books of accounts to compulsorily have features of recording audit trail of each and every transaction and creating an edit log of each change made in books of account along with the date of such changes and ensuring audit trail cannot be disabled. All our solutions have multiple reports with respect to "audit trails". Check out the document shared by Govt. on Audit trails