GST Council revised the HSN and SAC code declaration requirement part of the GSTR-1 Return and Invoices to have better compliance and reporting. Know more about HSN/SAC Codes, Indication of such details in GST Returns and Invoices, how to report in GSTR-1, penalty for non-compliance
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HSN or HS (Harmonized Commodity Description and Coding System) is a standardized system of nomenclature of different goods developed by World Customs Organization, which is accepted globally. HSN uses 6 digits uniform codes to classify different goods. India uses eight-digit codes for more specific and precise classification
Find HSN / SAC Codes along with the GST Rates to be used in Tax Invoices.
Indication of HSN or SAC Code details in GST Returns (GSTR-1) and Invoices till 31st March 2021 are as follows
|S.No||Annual Turnover in the preceding Financial Year||Number of digits of HSN/SAC Code|
|1||Upto Rs 1.5 Crore||Nil|
|2||More than Rs 1.5 Core and Less than Rs 5 Crore||2|
|3||More than Rs 5 Crores||4|
CBIC has amended the notification 12/2017 vide notification no 78/2020 to mandate disclosure of HSN/SAC codes in GST Returns (GSTR-1) and Tax Invoices from 01st April 2021 are as follows
|S.No||Annual Turnover in the preceding financial year||Number of digits of HSN/SAC Code|
|1||Upto Rs 5 Crore|
|2||More than Rs 5 Crore||6 digits (Mandatory for B2B and B2CS)|
HSN/SAC codes are required to be entered in GSTR-1. Description of each item in the Invoices need not be uploaded in GSTR-1 but the HSN/SAC needs to be entered for each product and/or service.
Taxpayers who use EZTax.in Books software need to enter the HSN or SAC code in the Product Master, so that the HSN/SAC information would automatically brought in to the GSTR-1 Return based on the previous year turnover. Also refer How to create a GST ready Invoice