E-Way Bill System Advisory on HSN Code Changes Effective from February 1, 2024
Stay informed about the latest changes in the HSN Code requirement. In accordance with notification No. 78/2020 –Central Tax, dated 15th October, 2020, taxpayers are now required to include at least a 6-digit HSN code for B2B and Export transactions if their Annual Aggregate Turnover (AATO) exceeds Rs. 5 Crores. For those with an AATO below Rs. 5 Crores, a minimum of a 4-digit code is mandatory. This crucial update is set to be implemented in the e-way bill system starting from February 1, 2024.
New HSN Code Requirement Effective from February 1. 2024
Details of the Advisory:
As part of the evolving tax regulations, the government has mandated a significant adjustment in the HSN code requirements for e-way bills. This shift is aimed at streamlining the tracking and documentation of business-to-business (B2B) and export transactions, ensuring transparency and accuracy in the reporting process.
Key Points to Note:
Mandatory HSN Code Length
(i) Taxpayers with an AATO exceeding Rs. 5 Crores must provide a minimum 6-digit code.
(ii) Taxpayers with an AATO below Rs. 5 Crores are required to include a minimum 4-digit code.
