HSN code whether mandatory

Save Share

This query is : Resolved

Quick Summary

For dealers with an annual turnover below 1.5 crore, HSN codes are generally not mandatory. However, recent notifications specify that businesses with an annual turnover up to 5 crore must report 4-digit HSN codes for B2B transactions in GSTR-1. For turnovers exceeding 5 crore, 6-digit HSN codes are required for all outward supplies, while B2C HSN reporting remains optional for those under 5 crore turnover.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
Follow

29 February 2024 Sir, whether HSN code is mandatory for a dealer whose annual turnover is less than 1.5 crore ?

RAJA P M

RAJA P M (Expert)
Follow

29 February 2024 No... HSN code not mandatory for turn over less than 1.5cr.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

16 August 2025 As per Notification No. 78/2020 – Central Tax, businesses with an AATO up to ₹5 crore must report 4-digit HSN codes for B2B transactions in GSTR-1. For AATO exceeding ₹5 crore, 6-digit HSN codes are mandatory for all outward supplies. B2C HSN reporting is optional for businesses with AATO up to ₹5 crore.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now