Hsn quary

HSN mandatory for everyone

Upto 4 digits

If it is a B2C ( Business to Customer / Registered to Unregistered ) Tax Invoice and your Aggregate Turnover is upto Rs. 5 crores in the preceding FY, then quoting of HSN CODE is "OPTIONAL" for you. But in case of B2B Tax Invoices, quoting of 4 DIGITS HSN CODE is "MANDATORY" if your Aggregate Turnover in the preceding FY is upto Rs. 5 crores, w.e.f. 01st April 2021.

As per Notification No. 78/2020 - Central Tax, dated 15.10.2020 :

1). Registered Persons whose Aggregate Turnover is upto Rs. 5 crores in the preceding financial year :- HSN CODE OF 4 DIGITS is "MANDATORY" for all the B2B Tax Invoices and is "OPTIONAL" for B2C Tax Invoices on the supplies of Goods or Services or both w.e.f. 01st April 2021.

2). Registered Persons having Aggregate Turnover More than Rs. 5 crores in the preceding financial year :- HSN CODE OF 6 DIGITS is "MANDATORY" for all the Tax Invoices ( B2B as well as B2C ) on the supplies of Goods or Services or both w.e.f. 01st April 2021.

Therefore, Since your aggregate turnover is upto Rs. 5 crores ( Rs. 10 lakhs ), quoting of HSN Code will be as follows :

a). B2C Tax Invoice :- "OPTIONAL"
b). B2B Tax Invoice :- "MANDATORY @ 4 DIGITS."

Regards,
Shivam RC.

Agree with Shivam