Specified Digits of HSN Code for Tax Invoice under CGST/ IGST/ UTGST, notified by CBIC

CBIC notifies the prescribed number of digits of HSN code required to be mentioned by a registered taxpayer in the Tax Invoice under CGST Rule 46.

HSN Code Requirement in GST Tax Invoice from 01/04/2021

CBIC notifies/ prescribes the requirement of mention of ‘4’ or ‘6’ number of digits of HSN code in the Tax Invoice. w.e.f. 01/04/2021, under CGST Rule 46, if the registered taxpayer has a turnover of ‘upto’ or ‘above’ Rs. 5 crores in the preceding year. However, a registered person having aggregate turnover upto Rs. 5 Crores in the previous financial year is not required to mention the aforesaid number of digits of HSN Code in a tax invoice issued by him in respect of supplies made to unregistered persons.

In other words, from 01/04/2021, it’s mandatory for a registered taxpayer under GST, having turnover of more than Rs. 5 Crores in the preceding financial year, to furnish 6 digits HSN Code (Harmonised System of Nomenclature Code) or SAC (Service Accounting Code), as the case may be, on the tax invoices issued for supplies of taxable goods and services.

On the other hand,  a registered taxpayer under GST having turnover of upto Rs. 5 Crores in the preceding financial year is required to mandatorily furnish 4 digits HSN code on B2B invoices, i.e. B2C cases have been excluded.

Annual Turnover in the preceding Financial YearNumber of Digits of HSN Code 
Upto Rs. 5 Crore4
Above Rs. 5 Crore6

HSN Code Requirement in GST Tax Invoice upto 31/03/2021

CBEC notifies/ prescribes the requirement of mention of ‘2’ or ‘4’ number of digits of HSN code in the Tax Invoice. w.e.f. 01/07/2017, under CGST Rule 46, if the registered taxpayer has a turnover of ‘above Rs. 1.5 crore but upto Rs. 5 crore’ or ‘above Rs. 5 crore’ in the preceding year.

Annual Turnover in the preceding Financial YearNumber of Digits of HSN Code 
Upto Rs. 1.5 CroreNil
Above Rs. 1.5 Crore but upto 5 Crore2
Above Rs. 5 Crore4

List of Notifications on Requirement of Prescribed Number of Digits of HSN Code in GST Tax Invoice under CGST/ IGST/ UTGST Rules 2017

Applicable from 01/04/2021:

CBIC Central Tax Notification 78/2020 dt. 15/10/2020: Prescribed Digits of HSN Codes for Tax Invoice under CGST

CBIC Integrated Tax Notification 6/2020 dt. 15/10/2020: Prescribed Digits of HSN Codes for Tax Invoice under IGST

Applicable upto 31/03/2021:

CBEC Central Tax Notification 12/2017 dt. 29/06/2017: Prescribed Digits of HSN Codes for Tax Invoice under CGST

CBEC Integrated Tax Notification 5/2017 dt. 28/06/2017: Prescribed Digits of HSN Codes for Tax Invoice under IGST

CBEC UT Tax Notification 11/2017 dt. 30/06/2017: Prescribed Digits of HSN Codes for Tax Invoice under UTGST (Andaman/ Nicobar)

CBEC UT Tax Notification 12/2017 dt. 30/06/2017: Prescribed Digits of HSN Codes for Tax Invoice under UTGST (Chandigarh)

CBEC UT Tax Notification 13/2017 dt. 30/06/2017: Prescribed Digits of HSN Codes for Tax Invoice under UTGST (Dadra and Nagar Haveli )

CBEC UT Tax Notification 14/2017 dt. 30/06/2017: Prescribed Digits of HSN Codes for Tax Invoice under UTGST (Daman and Diu)

CBEC UT Tax Notification 15/2017 dt. 30/06/2017: Prescribed Digits of HSN Codes for Tax Invoice under UTGST (Lakshadweep)

Related Posts:

GSTN Advisory on HSN Code in Tax Invoice and Errors in GSTR 1 Filing

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