What is HSN code update?
Central Board of Indirect Taxes and Customs (CBIC) has released a small reminder for the GST taxpayers about the HSN (Harmonized System of Nomenclature)code being made mandatory on all the invoices.
This reminder comes in reference to the ‘Notification No. 79 /2020 – Central Tax’ which makes GST HSN code mandatory on all the B2B invoices w.e.f. 1st April 2021.
CBIC issued this reminder to nudge the GST taxpayers about this amendment which was brought about on 15th October 2020.
In this short article, we will discuss some features you need to know about this amendment so that the taxpayers can refresh their information base and prepare for this change accordingly.
CBIC 2021 Update in Brief
This update concerns various groups of taxpayers. We'll discuss these groups one by one for ease of understanding.
HSN code turnover limit & HSN code applicability
Taxpayers with MORE than INR 5 Crore aggregate turnover
Taxpayers with aggregate turnover up to INR 5 Crore
For both these groups of taxpayers, the financial year to be considered for calculating the annual aggregate turnover will be 2020-2021.
This change will come into effect from the 1st of April 2021.
Some Frequently Asked Questions about HSN code
- For taxpayers above 5 Crore– B2B and B2C invoices.
- For taxpayers below 5 Crore– B2B invoices.
- HSN codes are an internationally recognized system of codifying and classifying the products in the World.
- This will make GST compliant with the international standards and ensure a fair levy of taxes.
How can GSTHero Help in e-Invoicing?
HSN Code is responsible for the proper categorization of goods and hence, you must input the appropriate code HSN.
In case you input an invalid code, your generated e-Invoice will also be incorrect which in turn will make your tax amount incorrect.
To avoid all these risks, accurate validations and automated e-Invoice generation are advisable.
We at GSTHero, provide a completely automated solution for all your e-invoicing needs.
So that you have no worries about the validation checks and errors because GSTHero got you covered.
Some prominent features of GSTHero’s e-Invoicing Solution include:
- Generation of e-Invoices in bulk
- Fully automated process
- On-call expert support
- Quicker Implementation
For a live demo, you can reach out to:
Contact us at email@example.com
Call us at: +91 800 7700 800
For more such informative content stay tuned to GSTHero.
Generate complete and ready-to-use
e-Invoices in just
Generate e-Invoices directly from your ERP Hassle-free