The Taxpayers whose aggregate Turnover is up to Rs. 5 crores in the preceding Financial Year HSN / SAC code of 4 digits is mandatory for all the B2B tax invoices and optional for B2C tax invoices on the supplies of Goods and Services.
The Taxpayers whose aggregate Turnover is more than Rs. 5 crores in the preceding Financial Year HSN / SAC code of 6 digits is mandatory for both B2B and B2C tax invoices on the supplies of Goods and Services.
1. ๐๐ง๐ฏ๐จ๐ข๐๐ ๐ฐ๐ข๐ฅ๐ฅ ๐๐ ๐ญ๐ซ๐๐๐ญ๐๐ ๐๐ฌ ๐ข๐ง๐ฏ๐๐ฅ๐ข๐ ๐๐ง๐ฏ๐จ๐ข๐๐: Invoice will be treated as Invalid Invoice in case of Non mentioning or incorrectย mentioning of Requisite particulars on Invoice.
2. ๐๐ฎ๐ฒ๐๐ซ ๐ฐ๐ข๐ฅ๐ฅ ๐ง๐จ๐ญ ๐๐ ๐๐๐ฅ๐ ๐ญ๐จ ๐๐ฅ๐๐ข๐ฆ ๐ข๐ง๐ฉ๐ฎ๐ญ ๐ญ๐๐ฑ ๐๐ซ๐๐๐ข๐ญ: One of theย requirement of claiming input tax credit is that invoice should beย complete in all respects as mentioned in Section 31 and this section requires to mention HSN for goods and services on theย invoice. So if you are furnishing incorrect HSN Code, buyer will not be able to claim input tax credit.
3. ๐๐๐ง๐๐ฅ๐ญ๐ฒ ๐๐จ๐ซ ๐ข๐ง๐๐จ๐ซ๐ซ๐๐๐ญ ๐ข๐ง๐ฏ๐จ๐ข๐๐ข๐ง๐ : Penalty of Rs. 25,000 under section 125 of CGST Act.