GST Update - Quoting of HSN on Tax Invoices

Rohit Kumar Singh , Last updated: 16 March 2021
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1. Quoting of HSN Classification on Invoices (With effect from April 1, 2021)

Notif. No

Date

Summary of Notification

78/2020 - Central Tax

and

6/2020 - Integrated Tax

15-10-2020

HSN classification on Invoices (with effect from 01/04/2021)

HSN at 6 digits for B2B supplies for taxpayers with aggregate annual turnover above Rs. 5 crores
HSN at 4 digits for B2B supplies for taxpayers with aggregate annual turnover up to Rs. 5 crores

If the supplies by registered person having aggregate turnover up to five crores rupees in the previous FY, HSN reporting on tax invoice for supplies made to unregistered persons (B2C) may not be required.

GST Update - Quoting of HSN on Tax Invoices

2. Table for HSN/SAC reporting based on Turnover and Nature of Supplies

S.No	Aggregate Annual Turnover	Supplies made to	Nature of Supply	HSN	SAC
1	Above Rs 5 Crores	B2B	Domestic (Inter/Intra)	6 Digits	6 Digits
2	Upto Rs 5 Crores	B2B	Domestic (Inter/Intra)	4 Digits	6 Digits
3	Upto Rs 5 Crores in Previous FY	B2C	Domestic (Inter/Intra)	Not Required	6 Digits
4	Turnover of any value	Exports	Exports	8 Digits	6 Digits

3. Steps for implementation of above notification

Ascertain your aggregate annual turnover for FY 2020-21
Check nature of supplies (B2B/B2C/Exports)
Review invoice format in Accounting package (SAP/Oracle/Tally or customized package)
Test the print and email format of the invoice
For any discrepancy reach out to Service provider for invoice formatting
Develop Outward Supply Reports (Sales and Inter-State Stock Transfer) incorporating HSN digits