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 Year | Number of Digits of HSN Code |
| Upto Rs. 5 Crore | 4 |
| Above Rs. 5 Crore | 6 |
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 Year | Number of Digits of HSN Code |
| Upto Rs. 1.5 Crore | Nil |
| Above Rs. 1.5 Crore but upto 5 Crore | 2 |
| Above Rs. 5 Crore | 4 |
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
E-waybill Portal update dated 05/09/2023:
As per the Central Tax Notification 78/2020 dated 15th October 2020, the taxpayers, having AATO above Rs 5 Crore, shall use at least 6 digit HSN code in the e-Invoices and e-Waybills and other taxpayers shall use at least 4 digit HSN code in E-Invoices and E-Way Bills. Most of the tax payers are already following this, other tax payers are requested to adapt to the change and comply by the due date. This will be made mandatory from 1st October 2023 in e-Waybill and e-Invoice Systems.