Declaration of HSN Code for Goods and Services

The CBIC has published the decision to mandatory declare the HSN code for goods and the SAC code for services was taken in 42nd GST Council Meeting held on 5th October 2020. In this article, we will discuss on Declaration of HSN Code for Goods and Services.

Declaration of HSN Code for Goods and Services

The CBIC has published the decision to mandatory declare the HSN code for goods and the SAC code for services for Taxpayers whose annual aggregate turnover in the prior fiscal year was up to Rs. 1.5 Crores were NOT compulsory to declare HSN for goods & SAC for services. But from 1st April 2021, compulsory declare a 4-digit HSN code for goods & SAC code for services for B2B supplies. (optional for B2C supplies)

The Taxpayers whose annual aggregate turnover in the prior financial year was above Rs 1.5 Crores and up to Rs. 5 Crores were compelled to declare only a 2-digit HSN for goods & SAC for services. But from 1st April 2021, mandatorily announce a 4-digit HSN code for goods & SAC code for services for B2B supplies. (optional for B2C supplies).

The Taxpayers whose annual aggregate turnover in the prior financial year was above Rs. 5 Crores were compelled to declare a 4-digit HSN for goods & SAC for services. But from the 1st April 2021, compulsory declare a 6-digit HSN code for goods & SAC code for services for B2B as well as B2C supplies.

Penalty if a taxpayer doesn’t declare HSN/SAC codes as compelled?

General penalty u/s 125 can be gathered as the taxpayer has contravened with the requirements of the GST Act. As the penalty is not individually provided, a general penalty up to Rs 25,000/- can be levied upon the taxpayer.

In case, you need any kind of direction connected with the GST Registration, or any other GST compliance, please feel free to communicate with our business advisors at 8881-069-069.

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