GSTN Advisory on Mandatory Mentioning of HSN Codes

GSTN Advisory on Mandatory Mentioning of HSN Codes

GSTN Advisory on Mandatory Mentioning of HSN Codes

The GSTN has issued an advisory dated 21.07.2022 regarding the implementation of mandatory mentioning of HSN codes of GSTR-1.

Vide Notification No. 78/2020 – Central Tax dated 15.10.2020, it is mandatory for the registered persons to mention the HSN codes in Table 12 of GSTR – 1.

The reporting digits shall be a minimum of 4/6 digits based on their aggregate annual turnover (AATO) effective from 01.04.2021.

Also, in the aforementioned notification, it was mentioned it is at the option of the registered person having the AATO up to INR 5 Cr. whether or not to mention the HSN code while issuing the tax invoice to an unregistered person.

Furthermore, to facilitate the same, changes have been implemented on the GST Portal in a phase-wise manner:

Phases

Part

AATO upto INR 5 Cr.

AATO above INR 5 Cr.

Implementation Date

Phase 1

I

2 digits of the HSN are mandatory.

4 digits of the HSN are mandatory.

Already implemented from 01.04.2022

II

Same as above

6 digits are mandatory.

Will be implemented from 01.08.2022

Phase 2 – 4

Will be communicated in the due course.

 

 

Manual Entries shall be allowed to the taxpayers, after which they will be able to file GSTR-1.

In case of any query/doubt on the implementation of Mandatory HSN Codes or any other query related to GST, please feel free to contact the ASC Group.

Source:

  1. Advisory: https://tutorial.gst.gov.in/downloads/news/hsn_advisory_table_12_2.pdf
  2. Notification No. 78/2020: https://www.cbic.gov.in/resources/htdocs-cbec/gst/notfctn-78-central-tax-english-2020.pdf
  3. GSTN News and Updates: https://www.gst.gov.in/newsandupdates/read/548

 

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