The Goods and Services Tax (GST) E-way Bill system has announced an update on 5th January 2024, indicating that the enforcement of the new Harmonized System of Nomenclature (HSN) code requirements for B2B and export transactions is scheduled to commence on February 1, 2024.
In accordance with Notification No. 78/2020 – Central Tax, dated October 15, 2020, it is imperative for taxpayers with an Annual Aggregate Turnover (AATO) exceeding Rs. 5 Crores to furnish a minimum 6-digit HSN code for B2B and Export transactions. Conversely, taxpayers with an AATO less than Rs. 5 Crores are required to provide a minimum 4-digit HSN code.
This requirement will be integrated into the e-way bill system, becoming effective from February 1, 2024. Consequently, taxpayers are strongly advised to incorporate the necessary adjustments into their systems.
Starting from February 1, 2024, when generating e-way bills through web and API systems, it is essential for taxpayers to input either a 4 or 6-digit HSN code, depending on their Annual Aggregate Turnover. This adjustment ensures compliance with the updated HSN code regulations outlined in the Goods and Services Tax framework.
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