Arjuna (Fictional Character): Krishan, on the day of Gudi Padawa new beginnings are made of many things, accordingly what new in GST this time?

Krishna, (Fictional Character): Arjuna, this time in GST new things are in Tax Invoice. With effect from the 1st April 2021, All GST taxpayers will have to furnish HSN (Harmonized System of Nomenclature Code), or Service Accounting Code (SAC) in their Tax Invoices. Further if turnover in PYs is more than 50 Cr then E-invoicing is mandatory.

Arjuna: What are HSN Code and SAC Code?

Krishna (Fictional Character): Arjuna, HSN code stands for “Harmonized System of Nomenclature” for Goods. This system has been introduced for the systematic classification of goods all over the world. SAC codes (Full form: Services Accounting Code) are codes issued by CBEC to uniformly classify each service under GST. Thus, the issues of rate of tax and classification may be digitalized, and hence Invoicing errors may be reduced to some extend.

Arjuna: Krishna, What is the limit of Turnover for HSN Code and SAC specification on Tax Invoice?

Krishna: Arjuna, 4-digit HSN code: for aggregate Turnover up to 5 crores in PY and 6️ digits HSN code: for more than INR 5 crores.

For aggregate Turnover in the preceding Financial Year 20-21 is to be considered.

Further, 4- digits HSN Code is optional in respect of supplies made to unregistered persons i.e., B2C supplies for a registered person having aggregate turnover up to INR 5 crores in the previous financial year.

Arjuna: Krishna, what are the goods and services covered in the HSN code and SAC Code, and where we can check?

Krishna: Arjuna, you can get links of accurate HSN Codes for goods and SAC codes for services from below:

Link to Access HSN code and SAC code for Goods and Services:

Goods

Exempt Services

Updated notification pertaining to CGST rates on services as amended upto 16.10.2020

Arjuna: Krishna, what one should learn from this?

Krishna: Arjuna, with effect from the 1st April 2021, GST taxpayers will have to furnish HSN (Harmonized System of Nomenclature Code), or Service Accounting Code (SAC) in their invoices, as per the revised requirement. Otherwise, a penalty of RS.25000 may be levied for incorrect issue of Tax Invoices on the taxpayers.

Author Bio

More Under Goods and Services Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

May 2021
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31