Export invoice - Number of digits of SAC to be mentioned

[Mohideen A]

As per notification 12/2017 - Central tax, if the annual turnover is more than 5 crores then 4 digits of HSN to be mentioned in the Tax invoice.

Similarly for Export of services, is it mandatory to mention 6 digits or 4 digits is sufficient? Kindly clarify

Thanks in advance

[KASTURI SETHI]

Yes,.it is mandatory for export also. Rather, it is more important for export purpose as HSN has been accepted internationally. As notification itself says that HSN is turnover basis. It is mandatory for all taxable supplies whether for home consumption or export. If your turnover is below 1.50 crore, even then you must mention HSN because it is safe from every angle.

[Mohideen A]

Dear Sir,

Thanks for your clarification.

We agree that we need to mention HSN/SAC in the export invoice. Currently we are mentioning first 4 digits of SAC in our export of service invoice. Is it mandatory to mention 6 digits of SAC in the export invoice or mentioning of 4 digits of SAC will be sufficient ? kindly clarify

[KASTURI SETHI]

Notification No.12/17-C.T. dated 28.6.17 has not been further amended so far. On the basis of this notification we can say that only 4 digits are mandatory. This is the latest position. Notification No.12/18-CT dated 7.3.18 meant for E-way bill also makes 4 digit mandatory. 6 digit HSN/SAC code is not mandatory.

AI Summary

HSN/SAC Code requirement: four digit HSN/SAC is mandatory on export invoices when turnover threshold applies; six digit not required. The notifications mandate reporting of HSN/SAC codes on tax invoices based on turnover thresholds; where applicable, four digit HSN/SAC codes are required for all taxable supplies including exports, and the current notifications and related e way bill instrument do not mandate six digit HSN/SAC codes for export invoices.