From December 15, 2023, a 6-digit HSN Code is Mandatory for GST E-invoices

Starting December 15, 2023, a new rule requires businesses with an Annual Aggregate Turnover (AATO) of Rs. 5 crores or more to include a minimum 6-digit Harmonized System of Nomenclature (HSN) code in their electronic invoices for Goods and Services Tax (GST).

As of September 5, 2023, a recent update in the GST E-way bill system mandates that businesses with an Annual Aggregate Turnover (AATO) surpassing Rs. 5 Crore must include a minimum 6-digit HSN code in both their electronic invoices and e-Waybills. 

This aligns with the regulations outlined in Notification No. 78/2020 dated October 15, 2020. Conversely, businesses below this turnover threshold should incorporate a minimum 4-digit HSN code in their electronic invoices and GST E-Way Bills.

The e-invoice system is designed for GST-registered individuals to upload their business-to-business (B2B) invoices to the Invoice Registration Portal (IRP). Using the IRP, users receive a unique Invoice Reference Number (IRN), digitally signed e-invoice, and QR code.

As per GST Authority guidelines, e-invoice portals must report invoices within 30 days from the invoice date. This requirement applies to taxpayers with an AATO equal to or exceeding 100 crores, starting from November 1, 2023.

Also Read: FM Sitharaman Exposes 21,791 Fake GST Registrations, Rs 24,000 Cr Tax Evasion

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