Analysis of amendments in 1st proviso to rule 46 for Invoicing under GST

The GST Law requires that an invoice – tax invoice or bill of supply – is issued on the occurrence of a certain event, being a supply, within the prescribed timelines. Therefore, an invoice, among other documents is required to be issued for every form of supply such as sale, transfer, barter, exchange, license, rental, lease, or disposal. Further Rule 46 of CGST Rules, 2017, a tax invoice referred to in section 31 shall be issued by the registered person containing all the particulars specified in the said Rule, as applicable to the transaction.

1st Proviso to Rule 46 has been amended vide 2nd para to Notification 79/2020 dated 15.10.2020 which shall now be read as Board on the recommendation of the Council may notify :

• No of digits for HSN code for Goods & Services that class of registered person shall be required to mention and,
• Goods & Services for which all the registered person would be required to mention the HSN and,
• Class of registered person not required to mention the HSN.

CBIC vide Notification 78/2020 dated 15.10.2020 notified the no of digits for HSN code for Goods & Services that class of registered person shall be required to mention (i.e. 4-digit HSN code for registered person having AATO upto-5cr and 6-digit HSN registered person having AATO above-5cr) and class of registered person not required to mention the HSN (i.e. registered person having AATO upto-5cr may not mention the HSN in respect of supplies made to URD) with effect from 01.04.2021.

Therefore vide this Notification CBIC provided that in future it may come up with another notification in which all the registered persons supplying specific Goods and Service would be required to mention the HSN code.

Also Read: Implication on HSN Disclosure vide recent GST notifications
Implications of amendments in GST dated 15.10.2020 in Rule 142 of the CGST Rules