Notification No. 12/2017 Method of providing Codes in invoices

[Lakshmi subramanian]

Understand from the notification, it is applicable only for HSN code and not applicable for SAC code. My view has been substantiated under following grounds.

01. HSN code and SAC code are different.

The main difference between HSN code & SAC code is given below extracted from howtoexportimport.com"

"Difference between HSN Code & SAC code Under GST India

What does SAC code mean?

SAC stands for Service Accounting Codes which are adopted by the Central Board of Excise and Customs (CBEC) for identification of the services.

How does HSN code work under GST system in India?

HSN stands for Harmonized System of Nomenclature which is internationally accepted product coding system used to maintain uniformity in classification of goods.

The above information is about the difference between SAC code and HSN code under GST in India."

02 in my view, the purpose of 2 digits & 4 digits on SAC codes as per notification will be defeated due to following reasons.

a. Entire chapter 99 handles Services

b. All dealer in services use only 99 code when their turnover ranges between 1.5 crore & 5 crores

c. Goods Turnover and Services Turnover can not be on par

To conclude on my query,

notification 12/2017 is applicable to SAC code or not. You views to be substantiated

Warm Regards

Mr.Lakshmi

AI Summary

HSN code applicability limited to goods under the invoice coding notification; services using SAC codes are excluded.
The notification prescribes invoice coding for supplies of goods by reference to the HSN Code and does not apply to supplies of services identified by SAC Code; therefore, digit-level HSN instructions govern goods invoicing while SAC-based service classifications are outside its scope.