WHETHER 6 DIGITS HSN IS COMPULSORY

[SAFETAB LIFESCIENCE]

Dear Experts,

We hear through freinds whether we have to mention 6 digits HSN from 15.10.2020 onwards if our TO is more than 5.00 Crores

[Rajagopalan Ranganathan]

Sir,

As per Notification No. 78/2020 – Central Tax dated 15.10.2020 and Notification 06/2020–Integrated Tax dated 15.10.2020 4 Digits of Harmonised System of Nomenclature Code (HSN Code) is to be indicated up to a turnover of ₹ 5 Crores and 6 Digits of Harmonised System of Nomenclature Code (HSN Code) is to be indicated where the turnover is more than 5 Crores.

[Rajagopalan Ranganathan]

Sir,

The effective date for implementation of this is 01.04.2021

[YAGAY and SUN]

Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1 w.e.f. 01.04.2021 as under:

HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above ₹ 5 crores;

HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover upto ₹ 5 crores;

Government to have power to notify 8 digit HSN on notified class of supplies by all taxpayers

[Ganeshan Kalyani]

Sir, it is to be followed w.e.f 01.04.2021.

[Bhavika Chothani]

HSN/SAC is based on turnover. If your turnover is more than 5 crores than 4 digit HSN is mandatory

AI Summary

HSN digit reporting: six-digit HSN required for large taxpayers; four-digit for smaller taxpayers; effective from April.
Taxpayers above the turnover threshold must disclose six digit HSN/SAC for supplies of goods and services; taxpayers at or below the threshold must disclose four digit HSN/SAC for B2B supplies. The government may notify an eight digit HSN requirement for specified supplies. These invoice and GSTR 1 disclosure requirements were scheduled to take effect on the notified implementation date.