Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

HSN code mandatory or Not ?

487 views

Save Share

Account Bird

111 Points Posted on 09 February 2021

Hi, can any one tell that in GSTR-1
HSN code is mandatory to mention or not. Even my Turnover is below than 1.5 crore, in the preceding year as well as in current year.

Please refer proper notification or circular in your reply.

Replies (7)

Quick Summary

This discussion clarifies the mandatory requirement of HSN codes in GSTR-1. While generally mandatory for B2B invoices from April 1st, 2021, the digit requirement varies based on turnover. Taxpayers with turnover up to ₹5 crore need 4 digits, while those above ₹5 crore require 6 digits. An additional notification mandates 8 digits for specific chemical products.

caankitshah1

article

28 Points Posted on 09 February 2021

Mandatory for all supplier from 1st April 2021

Account Bird

111 Points Posted on 09 February 2021

Please suggest any circular or notification in your reply

Bhaumik pandya

165 Points Posted on 10 February 2021

The 1st Proviso to Rule 46 of CGST Rules 2017 has been amended, vide Notification No.79/2020-CT dated 15-10-2020, for declaration of HSN code in invoice. Under this amended Proviso, Notification No. 78/2020 – Central Tax, dated 15.10.2020 has been issued to make HSN code mandatory up to 4 digits in the B2B invoices with effect from 01.04.2021 issued by taxpayers whose aggregate turnover in the preceding financial year is upto Rs. 5 crores. For the taxpayers whose turnover in the preceding financial year is more than Rs. 5 crores, HSN code is mandatory up to 6 digits in invoices with effect from 01.04.2021.

Dear Sir,

In addition to the above (well explained by Mr. Pandya), there is an other Notification Noti. No. 90/2020 CT - Dated 01st Dec- 2020 which mandates 8 digits HSN for 49 chemical products specified.