Taxpayers to mention 6-digit HSN Codes for outward supplies if AATO exceeds Rs 5 Crores



Quick Summary
Taxpayers whose annual aggregate turnover (AATO) exceeds Rs 5 Crores are now required to use 6-digit Harmonised System of Nomenclature (HSN) codes for all outward supplies. This change, mandated by Notification No. 78/2020, means that the e-Invoice System will soon stop accepting 4-digit HSN codes. Businesses need to update their systems accordingly to ensure compliance.

As per Notification No. 78/2020 - Central Tax dated October 15, 2020,  it is mandatory for taxpayers to mention 6-digit HSN Codes for their outward supplies having AATO more than Rs 5 Crores.

HSN Codes: 6-Digit Mandatory for Over Rs 5 Cr Turnover

After a few weeks of time, e-Invoice System will not accept 4-digit HSN codes. The date for blocking e-Invoice generation having HSN code as 4-digits will be intimated shortly in this portal.

So, please make necessary changes in your system to report 6-digit HSN codes to e-Invoice Portal and comply by the notification.

You may verify all your HSN codes in the (https://einvoice1.gst.gov.in) portal under Search–>Master–>HSN Codes and also test in the sandbox system (https://einv-apisandbox.nic.in).

In case the 6-digit HSN code is not available, you may raise a ticket at Helpdesk so that it can be included in the system.

Official Document has been enclosed below

FAQ :

Taxpayers with an annual aggregate turnover (AATO) exceeding Rs 5 Crores are required to mention 6-digit HSN codes for their outward supplies.

Taxpayers with an AATO over Rs 5 Crores must now use 6-digit HSN codes for outward supplies. The e-Invoice System will stop accepting 4-digit codes soon.

The specific date for blocking e-Invoice generation with 4-digit HSN codes will be intimated shortly on the official portal.

You can verify your HSN codes on the e-Invoice portal at https://einvoice1.gst.gov.in under Search -> Master -> HSN Codes, or test them in the sandbox system at https://einv-apisandbox.nic.in.

If a required 6-digit HSN code is not available, you should raise a ticket with the Helpdesk so it can be included in the system.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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