Declaration of HSN code mandatory from 01.04.2021

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CBIC had earlier vide notification made declaration of HSN code mandatory from 01.01.2021 by making amendment to instruction of GSTR 1.

However, now in a recent tweet it can be seen that HSN/ SAC code has been made mandatory from 01.04.2021 for invoice and this shall be made applicable on supplier of goods as well as service.

In the above tweet it was mentioned that declaration of HSN code for goods and service shall be effective from 01.04.2021:

1. For taxpayer with aggregate annual turnover more than Rs. 5 crore during FY 2020-21: 6 digit of HSN code mandatory for all tax invoice.

2. For taxpayer with aggregate annual turnover upto Rs. 5 crore during FY 2020-21: 4digit of HSN code mandatory for all B2B invoice and optional for all B2C invoice.

In the above note there is no mention of HSN code for GSTR 1 and while filing also there is no error that mentioning HSN is mandatory so let’s see when the same becomes mandatory.

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