Dear Taxpayers,

1. We would like to bring to your attention notification no. 78/2020 – Central Tax dated 15th October 2020. As per the above-said notification, it is now mandatory for taxpayers to report a minimum of six-digit valid HSN code for their outward supplies having AATO of more than 5 crores in any previous financial year.

2. We would like to inform you that this requirement has already been implemented in the GST system, and we are now in the process of implementing the same at IRPs portal in collaboration with our IRP partners including NIC. It is further suggested that in case wherever valid six digit HSN code is not available, a corresponding valid eight digit HSN code be reported instead of artificially creating six digit HSN code.

3. We understand that this requirement may require changes to your systems as well. We would like to assure you that we intend to provide sufficient time for taxpayers and IRP partners to make the necessary changes to comply with this requirement.

4.We will communicate the exact date of implementation to you shortly.

Thanking You,
Team GSTN

HSN code reporting requirement: six digit HSN now mandated for large taxpayers; IRP portal implementation and transition period announced Mandatory reporting of a minimum six digit valid HSN code for outward supplies is required for taxpayers meeting the aggregate turnover threshold; the GST system enforces this and IRP portals are being updated to implement the same. Where six digit HSN is unavailable, report a corresponding valid eight digit HSN rather than creating an artificial code. Taxpayers and IRP partners must update systems and will be given a transition period with the implementation date to be communicated.