Now Mentioning HSN/SAC code is mandatory from 01-04-2021

In this article, we are covering one of the important changes in GST that are applicable from 01-04-2021. The change is with respect to the compulsory mentioning of 4 digit/6 digit HSN code in case of the supply of goods and SAC code in case supply of services on tax invoices. This is also required to be reported in Table No 12 of GSTR-1.

What is the current position before such change?

👉A registered person having aggregate turnover up to Rs 1.5 Crore was NOT required to mention any HSN Code or SAC Code. [Notification No 12/2017]

👉A registered person having aggregate turnover between Rs.1.5 crore to Rs. 5 Crore was required to mention First 2 digit HSN Code/SAC Code. [Notification No 12/2017]

👉A registered person having an aggregate turnover of more than Rs. 5 Crore was required to mention First 4 digit HSN Code/SAC Code. [Notification No 12/2017]

What is the position after such change i.e from 01-04-2021?

👉The above  Notification No 12/2017 was got amended by Notification No 78/2020 (CT) dated 15-12-2020.

👉A Registered Person having aggregate turnover in PRECEDING FINANCIAL YEAR is up to  Rs. 5 Crore, then it would be compulsory to mention 4 digit HSN Code for the supply of goods and SAC Code for the supply of service on tax invoices issued to REGISTERED SUPPLIERS (ie. B2B Transactions). However, it is OPTIONAL if the recipient is Not registered in GST (ie. B2C Transactions).

👉A Registered Person having aggregate turnover in PRECEDING FINANCIAL YEAR is more than  Rs. 5 Crore, then it would be compulsory to mention 6 digit HSN Code for the supply of goods and SAC Code for the supply of service on tax invoices issued to all suppliers (Registered/Unregistered both)

👉Correspondingly, it is also required to be reported in Table No 12 of GSTR-1.

👉Preceding Financial Year means FY 2020-21 for April 2021 onwards.

How to Find your HSN/SAC Code?

👉Recently a new facility has been introduced on the GSTN Portal where you can you search your HSN/SAC code.

👉To avail this service Click on SERVICES tab on the GSTN Portal and Choose USER SERVICES and select SEARCH HSN CODE from the list. 

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Disclosures and Disclaimer

This article is being furnished for informational purposes only. We make every effort to use reliable & comprehensive information, but we do not represent that the contents of the article are accurate or complete.