New Delhi: The Ministry of Finance has mentioned that GST taxpayer with turnover of greater than Rs 5 crore must furnish six-digit HSN or tariff code on the invoices issued for provides of taxable items and providers. The rule has been efficient from April 1, 2021.
“With effect from the 1st April, 2021, it has been made mandatory for a GST taxpayer, having turnover of more than Rs 5 crore in the preceding financial year, to furnish 6 digits HSN Code (Harmonised System of Nomenclature Code), or as the case may be, SAC (Service Accounting Code) on the invoices issued for supplies of taxable goods and services. A taxpayer having turnover of upto Rs 5 crore in the preceding financial year is required to mandatorily furnish 4 digits HSN code on B2B invoices. Earlier, the requirement was 4 digits and 2 digits respectively,” an official launch mentioned.
HSN codes for items at 6 digits are universally widespread. Therefore, widespread HSN codes apply to Customs and GST. Accordingly, codes prescribed within the Customs tariff are used for the GST functions too (as has been particularly talked about within the GST charge schedule). In Customs Tariff, HS code is prescribed as heading (4 digits HS), sub-heading (6 digits HS) and tariff gadgets (8 digits).
Further, HSN search facility can also be obtainable on the GST portal. Manufacturers and importers/exporters have been generally utilizing HSN Codes. Manufacturers have been furnishing these codes even within the pre-GST regime. Importers and exporters have been furnishing these codes in import/export paperwork. Traders would principally be utilizing HSN codes furnished within the invoices issued to them by the producer or importer suppliers. As such, a lot of GST taxpayers are already furnishing HS codes/SAC at 6/8 digits on voluntary foundation on the invoices, e -way payments and GSTR 1 returns.
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