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 Chan…

Pratibha Goyal

Mar 18, 2021

Last update on Mar 18, 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 Change	B2B Transactions	B2C Transactions
For Turnover upto Rs 5 Cr	4 - Digit HSN	NA
For Turnover of more than Rs 5 Cr	6 - Digit HSN	6 - Digit HSN
For Exports	8 - Digit HSN	8 - 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