The Goods and Services Tax Network ( GSTN ) has issued an Advisory dated 22nd March 2023 on HSN Code Reporting in e-Invoice on IRPs Portal in GST.
It may be noted here that as per the Notification no. 78/2020 – Central Tax dated 15th October 2020 it is now mandatory for taxpayers to report a minimum of six-digit valid HSN code for their outward supplies having AATO of more than 5 crores in any previous financial year.
HSN stands for Harmonized System of Nomenclature. HSN was developed by the World Customs Organisation (WCO) to classify goods across the world in a systematic manner for the purpose of taxation in identifying each product. HSN classification covers more than 5,000 products and is widespread and is adopted by more than 200 countries for uniform classification, the base for customs tariff and for collecting international trade statistics. HSN code is used to gather data and understand foreign and domestic trade in a more efficient manner. Therefore, it will help the government in deciding macroeconomic policies related to the trade of these commodities.
The advisory reads as under:
We would like to inform you that this requirement has already been implemented in the GST system, and we are now in the process of implementing the same at IRPs portal in collaboration with our IRP partners including NIC. It is further suggested that in case wherever valid six-digit HSN code is not available, a corresponding valid eight-digit HSN code be reported instead of artificially creating six digit HSN code.”
We understand that this requirement may require changes to your systems as well. We would like to assure you that we intend to provide sufficient time for taxpayers and IRP partners to make the necessary changes to comply with this requirement.
We will communicate the exact date of implementation to you shortly.
Source: GST Portal
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
