GST Rule Amendment: Simplifying HSN Code Reporting

Rule Change: Central Board of Indirect Taxes and Customs modifies GST rules.

Effective Date: Amendments effective from April 1, 2021.

HSN Code Requirements: Aggregate turnover up to Rs. 5 crores: Optional HSN code reporting. Aggregate turnover exceeding Rs. 5 crores: Mandatory 6-digit HSN code.

Invoice Provision: Registered entities with turnover up to Rs. 5 crores exempt from mentioning HSN code on invoices for sales to unregistered buyers.

Objective: Streamlining tax invoice procedures, reducing compliance burden for smaller businesses.

Issued By: Pramod Kumar, Director, Government of India.

Reference: Principal notification: No. 12/2017 – Central Tax, dated June 28, 2017.