Mandatory to Quote HSN/SAC Code in GST Invoice from 01.04.2021

Mandatory to Quote HSN/SAC Code in GST Invoice from 01.04.2021

Studycafe | Mar 18, 2021 | Views 2248991

Mandatory to Quote HSN/SAC Code in GST Invoice from 01.04.2021

Mandatory to Quote HSN/SAC Code in GST Invoice from 01.04.2021

The Change-related to Quoting of HSN Code on Tax invoice is given below:

HSN Code ChangeB2B TransactionsB2C Transactions
For Turnover upto Rs 5 Cr4 – Digit HSNNA
For Turnover of more than Rs 5 Cr6 – Digit HSN6 – Digit HSN
For Exports8 – Digit HSN8 – Digit HSN
  • The HSN Code digits will be reported based on the Turnover of FY 2019-20.
  • In the case of Export, the requirement of mentioning 8 – Digit HSN on Tax Invoice is as per FTP (Foreign Trade Policy) and not GST.
  • In case of non-mention of HSN Code Penalty of Rs 50,000 is applicable.
  • Also, HSN Mis-match changes the GST rate of goods/services. Taxpayers should be very careful while implementing the same.
  • Department can send notices in case of HSN mismatches and mistakes in GSTR-1/ Tax Invoice/ E-way Bill/ E-Invoice/ GSTR-9/ AOC-4/ Cost Audit Report/ Shipping Bill/ Bill of Entry/ Registration Certificate etc.
  • On Supply of Specified Checimals, 8 Digit HSN Code is mandatory. The List of specified Chemicals can be seen in Notification No. 90/2020 – Central Tax Dated 1st December 2020 

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