The Central Board of Indirect Taxes (“CBIC”) had issued Notification No. 78/2020 – Central Tax, dated October 15, 2020 to mandate 4/6 digit HSN/SAC Code on supply of goods or services on the tax invoices w.e.f. April 1, 2021
| S. No. | Aggregate Turnover in the
Preceding Financial Year |
Number of Digits
of HSN Code |
| 1 | Up to Rs. 5 Crores | 4 Digits |
| 2 | More than Rs. 5 Crores | 6 Digits |
Further, a proviso was inserted to provide that 4 digits of 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 Rs. 5 crores in the preceding financial year.