CBIC notified number of digits of HSN code required in tax invoice for different turnovers w.e.f. April 1, 2021

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Background:

The CBIC vide Notification No. 12/2017- Central Tax dated June 28, 2017 notified the number of Harmonised system of Nomenclature (“HSN”) code required in tax invoice in following manner:

Table

S. No.

Annual Turnover in the preceding Financial Year

Number of Digits of HSN Code

1.

Up to INR 1.5 Crore

Nil

2.

More than NR 1.5 Crore and up to INR 5 crore

2

3.

More than INR 5 crore

4

Notification:

CBIC vide Notification No. 78/2020- Central Tax dated October 15, 2020 amended the above table of Notification No. 12/2017- Central Tax dated June 28, 2017 in following manner:

S. No.

Annual Turnover in the preceding Financial Year

Number of Digits of HSN Code

1.

Up to IN INR 5 crore

4

2.

More than INR 5 crore

6

Provided that a registered person having aggregate turnover up to INR 5 crore in the previous financial year may not mention the number of digits of HSN Code, as specified above in a tax invoice issued by him under the Central Goods and Services Tax Rules, 2017 (“CGST Rules”) rules in respect of supplies made to unregistered persons.

The notification shall be effective from April 1, 2021.

Similar notification has been issued under Integrated Goods and Services Rules, 2017 (“IGST Rules”) vide Notification No. 06/2020- Integrated Tax dated October 15, 2020.

The CGST Notification can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2020/10/No.-78-2020–-Central-Tax.pdf

The IGST Notification can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2020/10/No.-06-2020–Integrated-Tax.pdf

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