E invoice Update : The GSTN has delayed the mandatory implementation of 6-digit HSN Codes in GST E-way Bills and E-invoices.
Important Update: As per a recent Update issued by the GST e invoice/ E-way Bill system dated September 30, 2023 stated that the Implementation of at least 6 digit HSN in e invoices and e-Waybills has been deferred.
In a recent update from the GST e invoice/E-way Bill system dated September 30, 2023, it has been announced that the implementation of the mandatory use of at least 6-digit HSN codes in e invoices and e-Way Bills has been deferred. This decision was made by the Goods and Services Tax Network (GSTN).
In simpler terms, they have decided not to enforce the use of 6-digit HSN codes in e invoices and e-Way Bills for the time being.
Under the GST e invoice System, registered individuals are required to upload their B2B invoices to the Invoice Registration Portal (IRP). The IRP then issues a unique Invoice Reference Number (IRN), digitally signs the e invoice, and provides a QR code to the user.
Initially, as per Notification No. 78/2020 — Central Tax dated 15th October 2020, taxpayers were mandated to include 6-digit HSN Codes for outward supplies exceeding Rs. 5 Crores. However, this requirement has been postponed in the e invoice portal.
But here's the catch: for taxpayers with an Aggregate Annual Turnover (AATO) greater than or equal to 100 crores, there's a new rule. Starting from November 1, 2023, there is a time limit of 30 days for reporting invoices from the date of the invoice on e invoice portals.
The specific date for blocking e invoice generation with 4-digit HSN codes will be notified on the portal. It's important for stakeholders to make the necessary system modifications to ensure compliance by reporting 6-digit HSN codes to the e invoice Portal.
Stakeholders are encouraged to review and validate their HSN codes on the portal (https://einvoice1.gst.gov.in) under Codes and conduct testing in the sandbox system (https://einv-apisandbox.nic.in).
For stakeholders who do not have a 6-digit HSN code available, there is an option to raise a ticket at the Helpdesk on the GST e invoice Portal.
It's worth noting that HSN codes, a six-digit classification system used since 1986, play a crucial role in categorizing various products for Customs and Central Exercise purposes. These codes have significance not only in Customs but also in the context of GST, as the provisions outlined in the Customs tariff are applicable to GST as well. Stay updated and compliant with these changes in the world of taxation.
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