Harmonised System Of Nomenclature HSN Code, Or Service Accounting Code, SAC:
The government has made it mandatory that a GST taxpayer having turnover of more than 5 crore rupees in the preceding financial year will have to furnish 6 digits Harmonised System of Nomenclature HSN Code, or Service Accounting Code, SAC from April 1, 2021, on the invoices issued for supplies of taxable goods and services.
- A taxpayer having a turnover of up to 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 a voluntary basis on the invoices, e -way bills, and GSTR 1 returns.
