HSN code whether mandatory


This query is : Resolved 

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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.

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

RAJA P M (Expert)
29 February 2024 No... HSN code not mandatory for turn over less than 1.5cr.

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.


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