The Goods and Services Tax Network (GSTN) has deferred the implementation of the mandatory requirement of 6-Digit HSN Code in e-Invoices and e-Way Bills.
The e-invoice System mandates GST registered individuals to upload all their B2B invoices onto the Invoice Registration Portal (IRP). Subsequently, the IRP generates a unique Invoice Reference Number (IRN), digitally signs the e-invoice, and provides a QR code to the user.
According to Notification No. 78/2020 — Central Tax dated 15th October, 2020, taxpayers are obligated to include 6-digit HSN Codes for outward supplies exceeding Rs. 5 Crores. However, the implementation of the same in the e-invoice portal has been deferred.
However, as per directions by GST Authority, a time limit of 30 days for reporting of invoices from date of invoice is imposed on e-invoice portals, and is applicable for taxpayers with AATO greater than or equal to 100 crores from 1st November 2023.
The specific date for blocking e-invoice generation with 4-digit HSN codes will be notified on the portal. Stakeholders are advised to modify their systems to accommodate reporting of 6-digit HSN codes to the e-Invoice Portal, ensuring compliance with the notification.
“Stakeholders are encouraged to review and verify their HSN codes on the portal (https://einvoice1.gst.gov.in) under Codes and perform testing in the sandbox system (https://einv-apisandbox.nic.in). If a 6-digit HSN code is unavailable, stakeholders can raise a ticket at the Helpdesk for its inclusion in the system,” conveyed the message on the GST e-Invoice Portal.
HSN codes, a six-digit classification system, have been utilised in India since 1986 to categorise various products for Customs and Central Excise purposes. These codes hold significance for both Customs and GST, where the codes specified in the Customs tariff are also utilised for GST purposes.
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