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HSN /SAC Codes  shall be mentioned in Tax Invoice

The taxpayers who have turnover below the limit of Rs 1.5 Crore will have to mention the description of goods/service in place of code. Whereas, the description is optional for taxpayers who are required to furnish HSN/ SAC codes on the basis of aggregate turnover as below:

  • Less than Rs. 1.5 crores  HSN/SAC code is not mandatory (Hence, composition dealers may not be required to specify HSN at 2-digit level also).
  • Rs. 1.5 crores to Rs. 5 crores – HSN code at minimum 2 digit chapter level is mandatory. SAC code is mandatory.  
  • Above Rs. 5 crores – HSN code at minimum 4 digit chapter level is mandatory. SAC code is mandatory.
  • For export turnover, 8-digit HSN code is mandatory irrespective of any of the above 3 categories.

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4 Comments

  1. Jigar Tanna says:

    For export turnover, 8-digit HSN code is mandatory.. But where it is written, please mention Rules/Notification/Circular(If Any)

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