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 andSUN]

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

Businesses Over 5 Crore Turnover Must Use 6-Digit HSN Codes Under GST From April 2021, Per Notification 15.10.2020. A query was raised regarding the requirement to use a 6-digit Harmonized System of Nomenclature (HSN) code for businesses with a turnover exceeding 5 crore rupees under the Goods and Services Tax (GST) system. Experts clarified that, as per notifications dated 15.10.2020, businesses with a turnover over 5 crores must use 6-digit HSN codes, while those with a turnover up to 5 crores should use 4-digit codes. This requirement is effective from 01.04.2021. Additionally, the government may mandate 8-digit HSN codes for certain supplies.