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