Central Board of Indirect Taxes & Customs (CBIC) has issued Notification No. 78/2020 – Central Tax dated 15th October, 2020 to revise the requirement to furnish the number of digits of Harmonised System of Nomenclature (HSN) codes in the tax invoice with effect from 1st day of April, 2021.
Earlier, through Notification No. 12/2017 dated 28th June, 2017, it was prescribed that till 31st day of March, 2021, the taxpayers having an annual turnover in the preceding financial year shall mention the HSN Code in the tax invoice as specified in the Table below:
|Serial Number||Aggregate Turnover in the preceding Financial Year||Number of Digits of Harmonised System of Nomenclature Code (HSN Code)|
|1||Up to INR 1.5 crores||NIL|
|2||More than INR 1.5 crores to INR 5 crores||2|
|3||More than INR 5 crores||4|
From 1st day of April, 2021, the requirement to mention HSN code in the a tax invoice issued by a registered person having annual turnover in the preceding financial year as specified in the table below shall be as follows:
|Serial Number||Aggregate Turnover in the preceding Financial Year||Number of Digits of Harmonized System of Nomenclature Code (HSN Code)|
|1||Up to INR 5 crores||4|
|2||More than INR 5 crores||6|
Further, a registered person having aggregate turnover up to INR 5 crores in the previous financial year may not mention the number of digits of HSN Code, as specified in the table above in a tax invoice issued by him in respect of supplies made to unregistered persons.
Similarly, Notification No. 06/2020- IGST has been issued under Integrated Goods and Services Tax Act,2017.