4/6 Digit HSN Reporting in E-Way Bill Mandatory From 1st Feb 2024

Last updated: 06 January 2024

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The E-Way Bill System has announced a significant change requiring businesses to report either 4 or 6-digit Harmonized System of Nomenclature (HSN) codes on their E-Way Bills. This new rule, effective from February 1, 2024, depends on a business's Aggregate Annual Turnover (AATO). Taxpayers with an AATO exceeding Rs. 5 Crores must use a 6-digit HSN code for B2B and export transactions, while those with an AATO below Rs. 5 Crores need to provide a 4-digit code. Businesses are advised to update their systems accordingly.

The E-Way Bill System has issued a crucial advisory dated January 05, 2024, announcing a significant change in the Harmonized System of Nomenclature (HSN) code requirements for E-Way Bills. Effective from February 1, 2024, businesses are mandated to adhere to new specifications based on their Aggregate Annual Turnover (AATO).

E-Way Bill: 4/6 Digit HSN Reporting Mandatory Feb 1

The Advisory is as follows

As per the notification No. 78/2020 –Central Tax, dated 15th October, 2020, it is necessary to provide at least 6 digit HSN code for all the B2B and Export transactions by the taxpayers whose Annual Aggregate Turnover (AATO) is more than Rs. 5 Crores. The taxpayers, with AATO less than Rs. 5 Crores, need to provide at least 4 digit HSN code.

This validation will be implemented in e-way bill System from 1st February 2024.

Hence, the taxpayers are advised to make necessary changes in their systems and enter 4 / 6 digit HSN codes while generating the e-way bills through web and API systems from 1st Feb. 2024.

FAQ :

The new rule for reporting 4 or 6-digit HSN codes on E-Way Bills is mandatory from February 1, 2024.

Businesses with an Aggregate Annual Turnover (AATO) of more than Rs. 5 Crores must report at least a 6-digit HSN code for B2B and export transactions.

Taxpayers with an Aggregate Annual Turnover (AATO) less than Rs. 5 Crores are required to provide at least a 4-digit HSN code.

The requirement for 6-digit HSN codes specifically applies to B2B and Export transactions for businesses with an AATO over Rs. 5 Crores. Businesses with lower AATO need 4-digit codes.

Businesses should update their systems to ensure they can correctly enter 4 or 6-digit HSN codes when generating E-Way Bills through web or API systems.

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