The e-invoice system for the Goods and Services Tax (GST) has been revised to make it obligatory for taxpayers with an Annual Aggregate Turnover (AATO) of Rs. 5 crores and above to include a minimum 6-digit Harmonized System of Nomenclature (HSN) code in their e-invoices. This update is effective from December 15, 2023.
The update states a follows: “Atleast 6 digit HSN will be mandatory in e-lnvoices, for taxpayers whose AATO is 5Cr and above, from 15th of December 2023.”
The GST E-way bill system, in its update on September 05, 2023, specified that as per Notification No. 78/2020 dated October 15, 2020, businesses with an Annual Aggregate Turnover (AATO) surpassing Rs. 5 Crore are required to incorporate a minimum 6-digit HSN code in both their e-Invoices and e-Waybills. On the other hand, businesses falling below this turnover threshold should include a minimum 4-digit HSN code in their E-Invoices and GST E-Way Bills.
Also read: Important Update: GSTN Implements Two-Factor Authentication (2FA) to Safeguard Taxpayers on GST Portal Nationwide w.e.f. December 1st 2023
The e-Invoice System is for GST registered persons for uploading all the B2B invoices to the Invoice Registration Portal (IRP). The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed e-invoice and QR code to the user.
As per the 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 AATO greater than or equal to 100 crores from 1st November 2023.
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