Synopsis of Clarification on reporting 4-digit 6-digit HSNs

The Principal Notification Number 12/2017 – Central Tax, dated the 28th June, 2017 which further amended vide Notification No. 78/2020 – Central Tax dated 15th October, 2020 (effective from 1^st April, 2021) notifies the specific digits of Harmonised System of Nomenclature (HSN) Codes to be mentioned by registered person while raising tax invoice by him and details thereof are as follows:-

• Aggregate Turnover in the preceding Financial Year is Upto INR 5 crores – 4 digit HSN
• Aggregate Turnover in the preceding Financial Year is More than INR 5 crores – 6 digit HSN
• Also, the registered person having aggregate turnover up to five crores rupees in the previous financial year may not mention the prescribed number of digits of HSN Code, if a tax invoice issued to unregistered persons.
• For supply of Specified chemicals a registered person shall mention eight number of digits of HSN Codes irrespective of Aggregate Turnover.
• Customs Tariff Act, 1975 to be referred
• If taxpayers are trying to report truncated first 6-digits out of an otherwise valid 8-digit HSN; which are actually not available in Tariff at 6-digit level and with no corresponding description of goods; then these are invalid and shall not being allowed in the System.
• Specific 6-digit HSNs, as available in the HSN/Customs Tariff (with corresponding description of goods) are allowed in the system The 4/6 Digit HSN Codes, which are not available in the tariff; along with specific description, Unit and GST Rate; are not allowed to be mentioned.
• In case HSN is otherwise valid but not accepted on GST Portal / e-invoice Portal / e-way Bill portal, then raise a ticket on GST Self-Service Portal: https://selfservice.gstsystem.in/ > Report Issue > Type ‘HSN’ in ‘Type of Issue/Concern’ search box > Select relevant sub-category, e.g. ‘e-Invoice – IRP – HSN Code related’
• This clarification is issued by GSTIN on 12/04/2021 and can be accessed at https://www.gst.gov.in/newsandupdates/read/463

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