Atleast 6 digits HSN mandatory in E-Invoices for Taxpayers with AATO of Rs.5 Crore and above w.e.f Dec 15

In accordance with the most recent update from the GST E-invoice system on December 04, 2023, taxpayers with an Aggregate Annual Turnover (AATO) of Rs.5 crore or more will need to include at least 6 digits of the HSN code in their e-invoices. This rule came into effect from December 15, 2023.

E-Invoicing under GST denotes electronic invoicing defined by the GST law. E-Invoice is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network (GSTN).

E-invoicing comprises a variety of technology and entry alternatives, and it deals with a number of documents, including invoices, purchase orders, debit notes, credit notes, payment terms, payment instructions, and remittance slips.

HSN code stands for “Harmonised System of Nomenclature”. This system has been implemented all around the world for the organised categorization of goods. The HSN code is a 6-digit universal code that classifies over 5000 goods and is recognised globally.

HSN code mandatory in E-Invoice:

All invoices with a value greater than Rs. 5 crore must include a 6-digit HSN code. All B2B invoices with a turnover of less than or equal to Rs. 5 crore must use a 4-digit HSN code.