It has been made mandatory for a GST taxpayer having a turnover of more than Rs 5 crore in the preceding financial year, to furnish 6 digits HSN Code (Harmonised System of Nomenclature Code) which comes into effect from April 1.
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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.
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.
Manufacturers and importers or exporters have been commonly using HSN Codes.
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.
