CA - Ankg & Associates

Central Board of Indirect Taxes & Customs vide its Notification No. 78/2020 – Central Tax dated 15th October, 2020, has amended the rules for declaration of HSN Code w.e.f 01st April, 2021.

New Effective requirements are as under :-

For Tax Payers having Aggregate Turnover of upto Rs.5 crore in Preceding Financial Year : 4 Digit HSN

For Tax Payers having Aggregate Turnover of more than Rs.5 crore in Preceding Financial Year : 6 Digit HSN

It is also provided that for Tax Payers having aggregate turnover of upto Rs.5 crore in preceding financial year may not mention the specified digits of HSN Code in respect of supply of goods or services made to Unregistered Person (case of B2C supply)

It means that for B2B supplies 4 digit / 6 digit HSN code is mandatory to be mentioned on all tax invoices issued by the Registered Person depending upon aggregate turnover in preceding financial year.

Option of not specifying 4 digit HSN is available only in case of B2C supplies by Registered Person having aggregate turnover of upto Rs.5 crore in preceding financial year .

CBIC vide its Notification No. 90/2020 – Central Tax dated 01st December, 2020, has notified list of 49 items with HSN Code (mainly chemicals) whereby 8 digit HSN code is mandatory to be mentioned on all Tax Invoice issued by Suppliers irrespective of amount of aggregate turnover of suppliers.

To Download Notification No. 78/2020 dt. 15/10/2020 for 4 digit / 6 digit HSN Code, click below

To Download Notification No. 90/2020 dt. 01/12/2020 for 8 digit HSN Code for notified chemicals, click below