HSN Code for Goods and Services on Tax Invoices is mandatory w.e.f April 01, 2021

The following  points are the *important* to be noted.

1. For Aggregate Turnover upto Rs.5 Crore *4 digits* to be mentioned if supplied to *Registered person* and *NIL* digits if supplied to *unregistered person*;

2. For Aggregate Turnover above Rs.5 Crore *6 digits* to be mentioned *for all supplies*;

3. For exports 8 digits to be mentioned in export invoices and is also a requirement as per Foreign Trade Policy;

4. It’s optional to show HSN codes in B2C invoices for turnover below 5 crores;

5. 49 chemicals as per Notification no. 90/2020 dated 01/12/2020 have to be mandatorily shown under 8 digits code;

6. It is mandatory to report minimum digits as above in Table 12 of *GSTR 1* and *Tax Invoice* also.

7. There is also a fine of Rs. 50,000/- (Rs. 25,000/- under each of CGST + SGST Acts) for committing a mistake related to this particular scenario under section 125 of the GST Acts.

8. All the tax invoices therefore should contain HSN digits, description of goods and tax rates specifically for better transparency and avoid any future litigations.