Whether HSN code is compulsory even for composition dealers? the latest notification no 78 mentions only tax invoice but rule 49 which discusses contents of bill of supply mentions HSN codes as one of the contents. Please clear the confusion.
Reply—
Notification No. 78/2020 – Central Tax dated 15th October 2020 introduced new HSN disclosure norms with effect from 01st April 2021 as follows—
|
Aggregate Turnover in the preceding Financial Year |
No of Digits of HSN Code |
|
Below Rs 5 crores |
4 (Not required for B2C invoices) |
|
Above Rs 5 crores |
6 |
Taxpayers whose turnover is less than Rs. 1.5 crore are also required to mention HSN code in invoice issued w.e.f. 01.04.2021. However as per proviso of notification No.12/2017–Central Tax] Dated: June 28, 2017 quoting of HSN code is not required in case of B2C invoice.
HSN requirement is applicable on issuance of Tax invoice only. Therefore, in case of composition dealers and sale of exempted goods, there is no requirement of mentioning HSN code as bill of supply is issued in these cases instead of Tax invoice.
Posted Date: Apr 09, 2021