With effect from the 1st April, 2021, it has been made essential for a GST taxpayer, having turnover of more than Rs 5 crore in the foregoing financial year, to procure 6 digits HSN Code (Harmonised System of Nomenclature Code), or as the case may be, SAC (Service Accounting Code) on the invoices announced for supplies of taxable goods and services. In this article, we will talk about HSN Code \/ SAC mandatory on Invoices from 1st April 2021.<\/p>\n\n\n\n
Notification on HSN Code \/ SAC mandatory on GST Tax Invoices<\/strong><\/p>\n\n\n\n The central government has declared the notification for the taxpayer having a turnover of upto Rs 5 crore in the preceding financial year is required to mandatory furnished 4 digits HSN code on B2B invoices. Earlier, the provision was 4 digits and 2 digits respectively.<\/p>\n\n\n\n Accordingly, with effect from the 1st April, 2021, GST taxpayers will have to furnish HSN\/SAC in their invoices, as per the amended regulation.<\/p>\n\n\n\n HSN codes for goods at 6 digits are universally familiar. Therefore, common HSN codes pertain to Customs and GST. Accordingly, codes specified in the Customs tariff are used for GST objectives too (as has been particularly referred to in the GST rate schedule).<\/p>\n\n\n\n Additional Notification by Central Government<\/strong><\/p>\n\n\n\n Further, HSN search facility is also accessible on the GST portal.<\/p>\n\n\n\n Manufacturers and importers\/exporters have been normally using HSN Codes. Manufacturers were providing these codes even in the pre-GST regime. Importers and exporters have been furnishing these codes in import\/export documents.
Merchants would mostly be utilizing HSN codes furnished in the invoices allocated to them by the manufacturer or importer suppliers. As such, a huge number of GST taxpayers are already providing. <\/p>\n\n\n\n