March 31, 2021 7:59 PM

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Furnishing 6 digits HSN Code or SAC made mandatory for GST taxpayers with more than Rs 5 crore turnover

<span style="color: #222222;">Government has made mandatory that a GST taxpayer having turnover of more than 5 crore rupees in the preceding financial year will have to furnish 6 digits Harmonised System of Nomenclature HSN Code, or Service Accounting Code, SAC from tomorrow on the invoices issued for supplies of taxable goods and services. A taxpayer having turnover of upto Rs 5 crore in the preceding financial year is required to mandatorily furnish 4 digits HSN code on B2B invoices. Earlier, the requirement was 4 digits and 2 digits.</span><br />'' <span style="color: #222222;"> </span><br />'' <span style="color: #222222;">HSN codes for goods at 6 digits are universally common. Therefore, common HSN codes apply to Customs and GST. HSN search facility is available on the GST portal.</span><br />'' <span style="color: #222222;"> </span><br />'' <span style="color: #222222;">Manufacturers and importers or exporters have been commonly using HSN Codes. Manufacturers were furnishing these codes even in the pre-GST regime. Importers and exporters have been furnishing these codes in import or export documents. Traders would mostly be using HSN codes furnished in the invoices issued to them by the manufacturer or importer suppliers. A large number of GST taxpayers are already furnishing HS codes or SAC at 6 or 8 digits on voluntary basis on the invoices, e -way bills and GSTR 1 returns.</span><br />''  

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